Real Estate Giants Leverage Tax Incentives for Data Center Expansion in India
India’s real estate industry is undergoing a significant shift, with leading developers investing heavily in data center infrastructure, driven by a 20-year tax exemption and the growing demand for digital services.
Real EstateData CentersTax IncentivesDigital InfrastructureIndiaReal EstateSep 23, 2025
Rising data consumption, cloud adoption, and the spread of AI-driven applications are further accelerating this shift. Real estate players are now deploying their land banks, construction expertise, and capital to create next-generation data center infrastructure. This diversification marks one of the most promising intersections of property and technology in recent times. Here are three of the country’s leading developers reshaping India’s digital future through data centers:
1. Anant Raj Limited
With decades of expertise in real estate, Anant Raj is emerging as a leader in data center development. Through Anant Raj Cloud, it has already delivered 28 MW of capacity across Manesar and Panchkula and is aggressively expanding with a USD 2.1 billion investment strategy. Founded in 1969, Anant Raj carries a strong legacy with 9.96 million sq. ft. of delivered residential and commercial projects and nearly 320 acres of prime, debt-free land in Delhi-NCR. This unique combination of real estate strength and digital infrastructure ambition positions the company as one of the most aggressive new entrants shaping India’s digital future.
2. Yotta Infrastructure (Hiranandani Group)
Hiranandani Group, long established as a force in integrated townships and commercial real estate, has extended its expertise into hyperscale data centers through Yotta Infrastructure. Its flagship, Yotta D1 at Greater Noida—the first in a six-tower campus—exemplifies how prime real estate can be repurposed for digital infrastructure. With a ₹39,000 crore commitment in Uttar Pradesh, Hiranandani is firmly embedding itself in India’s digital economy.
3. Lodha Developers
Known for luxury residences and large-scale integrated projects, Lodha is strategically leveraging its land assets to enter the data center segment. Its ₹450 crore land acquisition at Palava, Mumbai, in partnership with Amazon, marks its entry into this space. With plans to expand into NCR by FY 2026, Lodha is positioning itself as a diversified developer bridging premium land holdings with enterprise-grade data centers.
The Bigger Picture
This growing trend highlights a clear strategic shift—real estate developers are no longer confined to building homes and offices. With government incentives, rising enterprise demand, and India’s expanding digital penetration, they are transforming into the architects of the nation’s digital infrastructure, ensuring long-term value creation from their land banks.
Frequently Asked Questions
What is the primary driver for real estate developers to invest in data centers in India?
The primary driver is the government's proposed 20-year tax exemption for data center developers, coupled with the rising demand for digital services and cloud adoption.
Which companies are leading the charge in data center development in India?
Leading companies include Anant Raj Limited, Yotta Infrastructure (Hiranandani Group), and Lodha Developers.
What is the significance of Anant Raj Limited's investment strategy in data centers?
Anant Raj Limited's aggressive expansion with a USD 2.1 billion investment strategy and 28 MW of delivered capacity positions it as a major player in India's digital infrastructure.
How is the Hiranandani Group contributing to India's digital economy?
The Hiranandani Group, through Yotta Infrastructure, is investing ₹39,000 crore in Uttar Pradesh to build hyperscale data centers, repurposing prime real estate for digital infrastructure.
What is Lodha Developers' approach to entering the data center segment?
Lodha Developers is leveraging its land assets, including a ₹450 crore acquisition in Palava, Mumbai, in partnership with Amazon, to enter and expand in the data center segment.
Related News Articles
Real Estate Market Sees Gains Amid Positive Trend
Real Estate stocks rise as S&P BSE Realty Index gains 0.96% at 8117.27
Makers of 'Burj Khalifa' Enter Mumbai with Ultra-Luxury Villa Project
The real estate market in Maharashtra is set to witness a significant transformation with the launch of 'The Casa Venero,' an ultra-luxury villa project by the makers of the world-renowned Burj Khalifa.
Kanakapura Road: Bangalore's Emerging Eco-Friendly Real Estate Hub
Kanakapura Road in Bangalore is rapidly transforming into a sought-after real estate hotspot, with many residential projects emphasizing eco-friendly living. Green initiatives, landscaped gardens, and proximity to nature are key features attracting homebu
Maharashtra: Real Estate Sectors Anticipates Revolutionary Changes with New Government
The real estate sector in Maharashtra is buzzing with optimism as the newly formed government is expected to introduce transformative policies that could unlock significant growth and development in the industry.
Wakad and Wagholi in Pune Witness Significant Real Estate Price Growth
Pune's real estate market has seen impressive growth, with Wakad and Wagholi leading the way. Wakad, a prime area, recorded a 27% price increase, while the peripheral area of Wagholi saw a staggering 37% growth.
Hiranandani Group Makes Strategic Entry into Pune's Real Estate Market with Landmark Deal
The Hiranandani Group, one of India's leading real estate developers, has officially entered the vibrant real estate market of Pune by partnering with Krisala Developers on a significant 105-acre project.