Amazon India acquires Mumbai land worth ₹450 crore from Lodha Group to set up data centres. Check details
Amazon Data Services India, an Amazon India subsidiary, reportedly acquired 38.18 acres of land from Macrotech Developers or Lodha Group. Macrotech Developers' shares rose in Tuesday's trading session.
Amazon India acquired a 38.18-acre land parcel from real estate developer Lodha Group for over ₹450 crore to develop a hyper-scale data centre in Palava, near Mumbai, the Economic Times reported on Tuesday, December 3. Lodha is listed in the Indian stock market as Macrotech Developers.
Amazon Data Services India, a subsidiary of Amazon India, will get access to the already-sanctioned floor space index, which has a permissible development potential of nearly 4.16 million sq ft, as per the report.
Macrotech Developers Ltd shares rose 0.56 per cent to ₹1,296.80 in Tuesday's trading session, compared to ₹1,289.60 at the previous close.
Amazon Data Services India paid more than ₹396 crore out of the total agreed amount to Macrotech Developers at the time of the execution and registration of the sale agreement. The balance of over ₹54 crore will be paid within a time frame on completion of a few conditions, reported the news portal.
The company has also paid a stamp duty of ₹27 crore for the registration of the deal, which took place on November 12, according to data analytics firm Propstack, cited in the report.
Amazon India land parcel deals
In 2023, Amazon Data Services India bought a land parcel of more than four acres in the suburbs of Powai, Mumbai from construction giant Larsen and Toubro Ltd, via a long-term lease of close to 18 years, as per the report.
The report also said that the company is building a data centre on this land, for which it will pay rent of more than ₹562 crore over the lease period. This excludes the rent escalation.
Amazon India signed an agreement with L&T to lease an adjacent 5.5-acre land parcel for 21.5 years for a total lease payment of ₹921 crore, excluding a 3 per cent annual rent escalation. The transaction had increased the total rental payment for the entire 9.5-acre land parcel across both these plots to nearly ₹1,500 crore across the lease tenure.
Before 2022, the company also leased a commercial tower with a built-up area of 451,000 sq ft through a long-term sublease of over 15 years in Thane to set up a data centre. Soon after this development, the company acquired a 54-acre land parcel in Thane for over ₹1,870 crore to develop another hyperscale data centre, as per the report.
“We remain committed to India’s digital and AI transformation as is evident in the billions of dollars we have announced in planned investments into cloud infrastructure in India ($12.7 billion by 2030),” said Amazon Web Services, responding to the newspaper's query.
Rising Digitisation in India
With India's rising digitisation, data centres are becoming more important for concepts like payments, gaming, or upcoming needs like the metaverse.
Data centres in India are emerging as the most attractive growth opportunity for global investors and leading developers as investments are flowing into the data centre markets.
Multiple new markets are created simultaneously, along with the rapid development of campus sizes in the most established global cities.
According to the report, in addition to Amazon, other major global companies like Google and Microsoft have also started setting up their hyperscale data centres in the country.
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Business NewsCompaniesNewsAmazon India acquires Mumbai land worth ₹450 crore from Lodha Group to set up data centres. Check details
First Published:3 Dec 2024, 10:58 PM IST
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