Amazon India's Major Land Acquisition for Hyperscale Data Centre in Palava, Near Mumbai

Amazon India has made a significant land acquisition in Palava near Mumbai from the real estate developer Lodha. This strategic move will facilitate the development of a hyperscale data centre, reflecting Amazon’s growing commitment to India's digital inf

Amazon IndiaPalavaMumbaiData CentreReal EstateReal Estate MumbaiDec 03, 2024

Amazon India's Major Land Acquisition for Hyperscale Data Centre in Palava, Near Mumbai

Real Estate Mumbai:Amazon India has acquired a 38.18-acre land parcel in Palava, near Mumbai, from the real estate developer Lodha, listed as Macrotech Developers, for over Rs 450 crore. This acquisition is part of Amazon's strategic plan to develop a hyperscale data centre in the region. The deal includes access to an already sanctioned Floor Space Index (FSI) of around 4.16 million sq ft, which underscores the potential for significant development and investment in the area.As part of the transaction, Amazon Data Services India, a subsidiary of Amazon, has paid over Rs 396 crore to Macrotech Developers at the time of the sale agreement’s execution and registration. The remaining balance of over Rs 54 crore will be paid upon the fulfillment of certain conditions. Documents accessed through realty data analytics firm Propstack reveal that Amazon Data Services India has also paid a stamp duty worth Rs 27 crore for the registration of the deal, which took place on November 12.This latest acquisition is part of a series of strategic moves by Amazon in the Indian real estate market. Last year, Amazon Data Services India secured a four-acre land parcel in Mumbai’s Powai suburb from Larsen & Toubro through a long-term lease of nearly 18 years. The company is developing a data centre on this land, for which it will pay over Rs 562 crore in rent over the lease tenure, excluding rent escalation.In 2022, Amazon inked an agreement with L&T to lease an adjacent 5.5-acre land parcel for 21.5 years, with a total lease payment of Rs 921 crore, excluding a 3% annual rent escalation. This agreement increased the total rental payment for the entire 9.5-acre land parcel to nearly Rs 1,500 crore over the lease tenure.Prior to these acquisitions, Amazon Data Services India had leased a commercial tower with a built-up area of 451,000 sq ft in Thane through a long-term sub-lease of over 15 years to set up a data centre. In one of the largest outright land transactions in 2022, the company acquired a 54-acre land parcel in Thane for over Rs 1,870 crore to develop another hyperscale data centre.Amazon Web Services (AWS) emphasized their commitment to India’s digital and AI transformation, noting that they have announced planned investments of $12.7 billion in cloud infrastructure in India by 2030. The growing digitization in India has made data centres increasingly crucial for various sectors, including payments, gaming, and emerging trends like the metaverse.Other global tech giants, such as Google and Microsoft, are also setting up hyperscale data centres in India, recognizing the enormous potential and growth opportunities in the country. Data centres in India are rapidly becoming an attractive investment for global investors and leading developers, with multiple new markets being created and campus sizes developing at a pace similar to those in established global cities.

Frequently Asked Questions

How much did Amazon India pay for the 38.18-acre land parcel in Palava?

Amazon India paid over Rs 450 crore for the 38.18-acre land parcel in Palava near Mumbai.

What is the Floor Space Index (FSI) included in the deal?

The deal includes an already sanctioned Floor Space Index (FSI) of around 4.16 million sq ft.

What are Amazon's plans for the acquired land in Palava?

Amazon plans to develop a hyperscale data centre on the acquired land in Palava.

How much has Amazon Data Services India already paid for the land in Palava?

Amazon Data Services India has already paid over Rs 396 crore out of the total consideration amount to Macrotech Developers.

What is Amazon's total planned investment in cloud infrastructure in India by 2030?

Amazon has announced planned investments of $12.7 billion in cloud infrastructure in India by 2030.

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