L&T targets 150 MW data centre capacity by 2027, to utilise land banks

Engineering conglomerate Larsen & Toubro (L&T) looks to utilise its existing land banks to drive a multifold expansion of its data centre business, aiming to reach 150 megawatts (Mw) of capacity by 2027, a senior executive stated on Thursday.

 

The company is also open to forming joint ventures (JVs) with foreign partners at a special purpose vehicle (SPV) level, said Seema Ambastha, chief executive officer for L&T Cloudfiniti (data centre business), on a media call.

 

At present, L&T has operational data centres in Mumbai and Chennai, with a combined capacity of 32 Mw. New facilities are under development in Bengaluru, Panvel, and Mahape in Navi Mumbai, Ambastha said.

 

Reflecting on the potential for this business, Ambastha said: “Until maybe 2035, there is going to be a movement from the current 1 Gw to say 5-6 Gw or even 10 Gw. So it is a gap of 9 Gw. Nine Gw is not small. Look at the amount of land you need.”

 

She said this was an opportunity that L&T must leverage. “Totally sovereign, made in India, we have very good quality capital, good parcels of land banks and engineering talent.” The executive noted L&T’s existing land banks in Chennai, Bengaluru, and Mahape in Navi Mumbai.

 

Ambastha listed land available from L&T’s Hyderabad metro business as another prime location. “Hyderabad has a land bank from the metro business, and it is an excellent land bank with proximity to power thanks to the metro, access to stations and public transport. So, all these land banks are readily available.”

 

Commenting on the current rental rates for data centres in India, she added: “I do see rates coming down and stabilising between $60,000 and $70,000 per kW.”

 

L&T is also open to foreign partners to explore joint ventures at an SPV level. “I would prefer to have JVs, which could be SPVs in themselves. It does not have to be a JV across L&T right now, but it could be an SPV. And we are quite open to that. I am already in discussions with some potential JV partners exploring whether they could enter India,” she said. 

L&T’s data centre play

32 Mw: L&T’s current Data Centre capacity

150 Mw: 2027 data centre capacity target

~35-40 cr: Capex for each Mw capacity

To utilise existing land at Hyderabad, Bengaluru, Chennai

Exploring land acquisitions in Indore, Kolkata and Noida