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Amazon Data Services leases 2.39 lakh sq ft freehold industrial land space in Mumbai

Mumbai and Chennai are the top data centre markets, as these cities have the highest number of cable landing stations in the country. Amazon has massive digital infrastructure in India.

Image Ctsy: Yotta's Panvel NM1 Data center

Image Ctsy: Yotta's Panvel NM1 Data center

Amazon Data Services Pvt Ltd has leased 2.39 lakh sq ft of freehold industrial land space from L&T in Powai in Mumbai for 21 years and six months. The rent is Rs 3.57 crore per month, lease documents accessed by Propstack showed.

The total built-up area is 2.39 lakh sq ft and the security deposit paid by the company is Rs 99 crore, the documents showed.

The document was registered on June 13, 2022. It comes with an escalation of 3 percent year-on-year.

The lock-in period is 180 months, they showed.

There was no response to the queries sent to senior officials of Amazon or L&T.

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“To the extent that the business of a modern enterprise is run on computers, the data centre is the business. Data centres are where the cloud lives. Within the data world, some users cannot tolerate any delay, or latency, to the information that they need. The closer a business is to a data centre, the quicker it will receive the information that it needs. This means that data centres that are close to businesses will have the lowest levels of latency,” said Raja Seetharaman, co-founder of Propstack.

“With businesses increasingly clustering together in cities, Amazon’s city-centre data centre will be a vital cog in the economy of a global city. It is also significant that while most data centres prefer to be located in the outskirts of any city, Amazon has chosen to be at the heart of a suburban business district of Mumbai,” he said.

The digitisation requirements have leapfrogged in the past few years due to the unprecedented crisis created by the pandemic. All businesses realised that having an online presence and digitising internal processes and requirements, both are critical to sustainability and growth, said Shobhit Agarwal, MD & CEO - ANAROCK Capital.

"Creating a cloud infrastructure for various businesses to securely build, transfer and innovate is imperative and large companies are increasingly relying on the data services of global majors to digitise their operations. Against this backdrop, the demand for good quality data centres has been rising in leaps and bounds during the past few years. Also, e-commerce is booming in India, and so the requirements for web services are much more than before," he said.

Mumbai and Chennai lead the domestic data centre market as these cities have the highest number of cable landing stations in the country. Amazon has a massive digital infrastructure in India — the country which offers a quality tech talent pool — and this transaction seems to bode well for their growth strategy, he said.
Vandana Ramnani
first published: Aug 2, 2022 06:42 pm
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