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Amazon Invests ₹450 Crore in Data Center Land Near Mumbai

Amazon India has acquired a 38.18-acre land parcel from Lodha Group for ₹450 crore to build a hyper-scale data center in Palava, near Mumbai. The acquisition by Amazon Data Services India will allow the development of nearly 4.16 million sq ft of space.

By Mrigan Sharma
New Update
Amazon Invests ₹450 Crore in Data Center Land Near Mumbai

Amazon India has acquired a 38.18-acre plot of land from real estate developer Lodha Group for over ₹450 crore to develop a hyper-scale data center in Palava, near Mumbai. 

The acquisition was made by Amazon Data Services India, a subsidiary of Amazon India, which will have access to nearly 4.16 million sq ft of permissible development space. 

The land deal, completed on November 12, includes an upfront payment of ₹396 crore, with the remaining ₹54 crore to be paid upon the fulfillment of certain conditions. Amazon also paid a ₹27 crore stamp duty for the registration of the deal.

This acquisition follows a similar move in 2023 when Amazon Data Services India leased a four-acre plot in Powai, Mumbai, from construction giant Larsen & Toubro for a data center development, with a lease payment of ₹562 crore over 18 years. Additionally, the company leased another 5.5-acre plot adjacent to this one for a total lease payment of ₹921 crore.

Read more - ZFunds has Raisec Rs 25 crore in New Funding

Amazons broader investment strategy

The latest land acquisition is part of Amazons broader investment strategy to expand its data center infrastructure in India which is becoming increasingly crucial due to the country digital transformation. Amazon has committed to investing billions of dollars in cloud infrastructure with a planned 12.7 billion Dollars investment by 2030.

The rise in digitization across India has made data centers essential for sectors like gaming, payments and the growing metaverse market. Along with Amazon, other global companies such as Google and Microsoft are also setting up hyperscale data centers in India to meet the rising demand for digital services.

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