Amazon Data Services leases 4.51 lakh sq. ft. in Mumbai for Rs 74.91 cr p. a.

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Amazon Data Services has taken on rent 4,51,037.54 square feet (sq. ft.) of office space in Thane, Mumbai, at a rent of Rs 74.91 crore per year, documents accessed by Propstack showed.

The lease is for a period of 29 years. The monthly rent works out to be Rs 6.24 crore. The rent will increase by 3 percent every 12 months for the first 36 months, and 3.5 percent every 12 months for the last 144 months, the agreement to sub-lease registered on September 24, 2022, showed.

The premises have been leased by Newfound Properties, a subsidiary of K Raheja Corp, to Amazon Data Services, in a ground-plus-7 (G+7) story building.

There was no comment from  K Raheja Corp at the time of publication. The story will be updated once Amazon Data Services responds.

“Amazon continues to ramp up their data centres in India, and Mumbai has emerged as one of their preferred locations. The new data centres will allow Amazon’s domestic and global customers to utilise AWS (Amazon Web Services) infrastructure to securely build their businesses in India and run their applications in the cloud.

``Clearly, the Indian cloud services business is important for Amazon,  as it is preparing to locally expand its data centres to service Indian clients, instead of servicing them from countries like Singapore,” said Raja Seetharaman, Co-Founder, Propstack.

In June this year, Amazon Data Services had leased 2.39 lakh sq. ft. of freehold industrial land from L&T in Mumbai’s Powai area for 21 years and 6 months. The rent was Rs 3.57 crore per month. The security deposit paid by the company was Rs 99 crore.

Increasing data usage in the financial, entertainment, retail, and other domains, and higher commitment by cloud service providers will drive the Indian Data Centre (DC) industry growth, leading to a demand for 7.8 million sq. ft of real estate over the next two-and-a-half years. This will entail an investment of $4.6 billion, according to a JLL report, the Data Centre Update: H1 2022.