Lodha Developers Expands into Data Centres: A Strategic Move in India's Real Estate Sector
Lodha Developers, a leading real estate company in India, is diversifying its portfolio by entering the data centre space. With a memorandum of understanding (MOU) signed with the Government of Maharashtra, the company is set to develop a Green Data Centre Park in Palava, marking a significant step towards digital infrastructure.
Real EstateData CentresLodha DevelopersMaharashtraPalavaReal Estate MumbaiNov 24, 2025
With two anchor operators, Amazon Web Services (AWS) and ST Telemedia (STT), already on board, Lodha’s entry into data centres could mark a significant expansion of its business portfolio. Backed by strong state-level incentives and a supportive central policy draft, the Palava Data Centre Park is poised to become one of the country’s most advanced digital infrastructure hubs, with scalability of up to 3 gigawatt (GW) and potentially beyond.
Lodha Developers Ltd, India’s leading real estate developer, has a market capitalization of Rs. 1,17,479.24 crore and a current market price (CMP) of Rs. 1,176.45. The company has delivered approximately 110 million square feet of real estate and is developing over 130 million square feet under its ongoing and planned projects across residential, commercial, and digital infrastructure segments.
Lodha Developers, formerly Macrotech Developers, is planning a major push into developing and operating data centres, anchored around the government-approved data centre park on its 400-acre land parcel in Palava. Historically, the company has sold land parcels within Palava to hyperscalers and established data centre operators such as Amazon and ST Telemedia. With India still underserved in data centre capacity, this initiative is expected to provide substantial topline and profit opportunities over the long term, while requiring relatively modest investments.
The Maharashtra state government’s data centre policy is projected to deliver savings of up to Rs. 9,000 crore over a 20-year period, including waivers on GST and electricity duty. Combined with central-level policy support, these incentives significantly enhance the viability and attractiveness of the Palava Data Centre Park.
Sushil Kumar Modi highlighted the strategic opportunity, stating, “We are now brainstorming ourselves that this is a new business opportunity for us where potentially up to 3 gigawatt (GW) in capacity can be built on the 400-acre site, but we will continue selling some land for data centres. Even if we only develop 250 megawatt (MW) over the next five years, each MW could generate around Rs. 10 crore to Rs. 15 crore of profit annually. With the ability to deliver 8 to 10 MW per acre, each acre could potentially generate Rs. 100 crore, and the full 400-acre site could deliver between $5 billion and $10 billion.”
He added, “Annual profits from the data centre business, once capacity reaches 250 MW, are expected to be around Rs. 2,500 crore, based on investments of approximately Rs. 800 crore to Rs. 900 crore per year to develop 50 MW of capacity. The 250 MW target could be achieved entirely through the company’s own capital, without raising any funds externally.”
Lodha’s Palava land parcel spans around 4,500 acres near Dombivali in Thane district. Previously considered less viable due to poor connectivity, the area is now gaining prominence with infrastructure developments such as the upcoming Airoli-Katai Naka link, planned connections to the Mumbai Metro’s Orange Line, and the Mumbai-Ahmedabad high-speed railway. These projects are expected to enhance accessibility to Mumbai and Navi Mumbai, contributing to rising land and home prices in the region.
Frequently Asked Questions
What is the significance of Lodha Developers entering the data centre space?
Lodha Developers entering the data centre space marks a significant diversification of its business portfolio, leveraging the growing demand for digital infrastructure in India. This move is expected to provide substantial topline and profit opportunities.
What are the key incentives provided by the Maharashtra government for the data centre park?
The Maharashtra state government’s data centre policy offers savings of up to Rs. 9,000 crore over a 20-year period, including waivers on GST and electricity duty. These incentives significantly enhance the viability and attractiveness of the Palava Data Centre Park.
How much land does Lodha Developers have for the data centre park in Palava?
Lodha Developers has a 400-acre land parcel in Palava for the development of the Green Data Centre Park. The total land parcel in Palava spans around 4,500 acres near Dombivali in Thane district.
What is the expected profit potential from the data centre business for Lodha Developers?
Annual profits from the data centre business, once capacity reaches 250 MW, are expected to be around Rs. 2,500 crore. Each MW could generate around Rs. 10 crore to Rs. 15 crore of profit annually.
What infrastructure developments are expected to enhance the value of the Palava area?
The area around Palava is expected to see significant infrastructure developments, including the upcoming Airoli-Katai Naka link, planned connections to the Mumbai Metro’s Orange Line, and the Mumbai-Ahmedabad high-speed railway. These projects will enhance accessibility to Mumbai and Navi Mumbai, contributing to rising land and home prices.
Related News Articles
Boosting Real Estate: Key Cities Fueling GCC Launches in India by 2025
The number of Global Capability Centers (GCCs) in India is set to surge from over 1,800 to approximately 2,400-3,000 by 2030. This article highlights the latest GCC launches in key Indian cities, their company sizes, and the strategic reasons behind these expansions.
Impact of New US Remittance Tax on Indian Diaspora
The US House of Representatives has passed the 'One, Big, Beautiful Bill' (OBBB), which includes a 3.5% excise tax on outward remittances for non-citizens and foreign nationals. This could significantly affect the Indian diaspora, who send substantial funds back to India for family support and investments.
Coastal Road Expansion: A Revival for South Mumbai Real Estate?
Urban planners and real estate experts believe that the new link between the Mumbai Coastal Road and the Bandra-Worli Sea Link will significantly boost the growth of Nariman Point and other areas in South Mumbai.