Amazon Data Services India, a subsidiary of Amazon India, has acquired 38.18 acres of land from Macrotech Developers, also known as Lodha Group, for over Rs 4.5 billion. The land, located in Palava near Mumbai, will be used to establish a hyperscale data centre.

Key highlights:

Payment details: Amazon has paid Rs 3.96 billion upfront, with the remaining Rs 540 million to be paid after meeting certain conditions. The company also paid a Rs 270 million stamp duty for the registration, which was completed on November 12, 2024.

Development scope: The land comes with a sanctioned floor space index allowing a development potential of approximately 4.16 million sq ft.

Impact on Macrotech developers:
Shares of Macrotech Developers rose by 0.56% following the announcement, closing at Rs 1,296.80 on December 3.

Previous acquisitions:

In 2023, Amazon leased a 4-acre parcel in Powai from Larsen & Toubro for 18 years, incurring rental costs of Rs 5.62 billion over the lease term.

It also leased an adjacent 5.5-acre parcel for Rs 9.21 billion for 21.5 years, bringing the total rent across 9.5 acres to nearly Rs 15 billion.

In Thane, Amazon acquired 54 acres of land for Rs 18.7 billion to develop another hyperscale data centre.

Amazon Web Services reaffirmed its commitment to India's digital and AI transformation, highlighting its planned $12.7 billion investment in cloud infrastructure by 2030. With India's increasing digital adoption, data centres are crucial for applications like payments, gaming, and emerging technologies such as the metaverse. Global players like Google and Microsoft are also investing in hyperscale data centres in India, underscoring the country's prominence in the data centre market.

This acquisition reflects Amazon's strategic focus on expanding its cloud infrastructure to meet India's growing digital demands.

(Mint)