Amazon Data Services pre-leases 4 acres in Mumbai for data centre expansion

Amazon Data Services has pre-leased 4 acres in Mumbai's Powai from Larsen & Toubro for its data centre expansion, with a rental commitment of over ₹650 crore across nearly 18 years

Cloud computing services provider Amazon Data Services India Pvt. Ltd. has pre-leased 4 acres of land in Powai, in the Mumbai Metropolitan Region (MMR), for the expansion of its under-construction data centre campus at a total rental outgo of over ₹650 crore across a tenure of 17 years and seven months.

 

According to the lease-related documents accessed via Propstack, a real estate data analytics firm, Amazon has pre-leased the land from engineering and construction conglomerate Larsen & Toubro Ltd. The lease will expire on February 12, 2044, and includes 24 rent-free months spread across the term.

 

The data centre arm of Amazon Web Services (AWS) will pay a starting monthly rent of about ₹2.76 crore, with a 3 per cent annual escalation. Amazon has also paid a lease premium of ₹72 crore.

 

This marks Amazon's third land lease at the Powai campus, following leases of 5.5 acres in 2022 and 4 acres in 2023, taking its total leased area at the location to 13.5 acres. 

Under the 2022 agreement, Amazon's total rental commitment is estimated at around ₹921 crore over a lease term of 21.5 years. The 2023 transaction entails an estimated rental outgo of ₹562 crore over nearly 18 years.

 

Email queries sent by Business Standard to Amazon and L&T remained unanswered.

 

Last month, Amazon Data Services India purchased 10.6 acres of land in Palava, part of the MMR, for ₹125.13 crore from real estate company Lodha Developers. It had bought approximately 38.18 acres of land in November 2024 in the same region for ₹450 crore to develop a data centre.

 

Last month, Amazon Chief Executive Officer Andy Jassy announced an additional $13 billion investment in India, taking the company's total planned investment in the country to nearly $48 billion by 2030. Of the $48 billion investment, about $21 billion will be invested in AI and cloud infrastructure. The investment will expand AWS data centre capacity in Mumbai and Hyderabad, giving startups, enterprises and government organisations access to AI chips, managed AI services, secure cloud technologies and developer tools.

 

Additionally, according to Cushman & Wakefield, a commercial real estate services firm, India is emerging as one of Asia-Pacific's most significant growth markets for digital infrastructure, as accelerating AI adoption, hyperscale cloud expansion and rising enterprise demand continue to reshape global data centre development patterns.

 

The country ranks as the second-largest market in the region with 1.6 GW of operational capacity and is also among the top three markets by development pipeline, with 3.1 GW under construction and planned.