Amazon Web Services acquires 60 acres of land in Thane for Rs 1,800 crore

Representative image: By asharkyu/Shutterstock

Amazon Web Services has acquired 60 acres of land in Thane district, near Mumbai, for over Rs 1,800 crore, sources in the know told Moneycontrol.

The seller is Ananta Landmarks, an arm of Kalpataru, they said. The deal was registered on October 21.

The land parcel, located at Balkum Pada in the Majiwada area, is expected to be utilised for setting up a data centre facility. This is prime land located in Thane city and surrounded by residential complexes, malls and close to  Bhiwandi Road, they said.

There was no response from Amazon or Kalpataru for the story.

The registered document could not be accessed at the time of publishing this story. The story will be updated with more details as and when the registered document is accessed.

In August this year, Amazon Data Services India had picked up a 5.5-acre land parcel in Mumbai’s Powai area from Larsen & Toubro on a long-term lease of more than two years.

Amazon Data Services had also 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 in September this year. 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 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.

India's data centre market has witnessed an investment of $14 billion in the last five years, and the cumulative funding could cross $20 billion by 2025 as investors look for assets with stable income, a recent report by CBRE titled Data Centres in India: Powering Up Real Estate in a Data-High Era has said.

The COVID pandemic has accelerated the adoption of technology and data usage has increased significantly, it said.  Delhi-NCR, Pune, Hyderabad, and Kolkata accounted for the remaining 25 percent of the DC market in India. Mumbai is expected to lead the supply addition, followed by Bengaluru, Chennai, and Delhi-NCR.