BackAmazon leases Mumbai industrial land from L&T for data centre
Amazon will pay a monthly rent of about ₹3.57 crore, with periodic rental escalation, for a lease tenure of 21 years and six months. The lease agreement includes a rent-free period of 24 months, with a lock-in period of 15 years from the lease commencement date
PremiumBENGALURU: Amazon Data Services India Pvt Ltd has leased 5.5 acre of industrial land with a potential development area of 2.39 lakh sq ft, from Larsen & Toubro Ltd., in suburban Mumbai's Powai area to set up a data centre.
Amazon will pay a monthly rent of about ₹3.57 crore, with periodic rental escalation, for a lease tenure of 21 years and six months. The lease agreement includes a rent-free period of 24 months, with a lock-in period of 15 years from the lease commencement date, according to documents accessed by real estate data and analytics firm Propstack. The lease deed was signed on 30 June.
Amazon paid ₹99 crore as security deposit for the land. The 5.5 acre leased to Amazon is part of 58.06 acre that L&T owns at the location.
“With businesses increasingly clustering together in cities, Amazon’s city-center data center will be a vital cog in the economy of Mumbai. It is also significant that while most data centers prefer to be located at the outskirts of any city, Amazon has chosen to be at the heart of a suburban business district of Mumbai," said Raja Seetharaman, co-founder of Propstack.
An Amazon spokesperson didn’t respond to an email query.
Property advisory JLL was the transaction advisor.
“The Mumbai datacenter market currently holds enough capacity to absorb the potentially massive data requirements that are bound to arise in a market such as India. Around 700MWof data center capacity in this market is either under-construction or still to be commissioned. The Data Protection Bill when finalized, will be a pivotal point in the evolution of the Indian data center market and will dictate market volumes going forward," said Shishir Baijal, chairman and managing director at property advisory Knight Frank India.
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