Amazon Data Services India Pvt. Ltd. has pre-leased 4 acres of land in Powai, Mumbai Metropolitan Region (MMR), from Larsen & Toubro Ltd for its data centre expansion. According to lease-related documents accessed via Propstack, the agreement involves a total rental commitment of over ₹650 crore across 17 years and seven months, with the lease expiring on February 12, 2044. The lease includes 24 rent-free months spread across the tenure, with Amazon paying a lease premium of ₹72 crore. The transaction is part of Amazon's phased expansion of its data centre campus in Powai, following previous agreements of 5.5 acres in 2022 and 4 acres in 2023. As per Moneycontrol, the deal also includes a cumulative rent-free period of 24 months spread across the tenure, with the company's total leased land from L&T in Powai now reaching 13.5 acres.
The data centre arm of Amazon Web Services (AWS) will pay a starting monthly rent of approximately ₹69 lakh per acre, with a 3 per cent annual escalation throughout the lease term. This marks Amazon's third land lease at the Powai campus, with the latest agreement involving a monthly rent of ₹69 lakh per acre per month. The effective lease period is 211 months, including the 24 rent-free months spread across the tenure. With the latest lease, Amazon's total landholding under lease at the campus has increased to 13.5 acres. The deal underscores AWS' efforts to expand its data centre capacity in India as demand for computing infrastructure rises from artificial intelligence and cloud service providers, as well as large enterprises.
Under the 2022 agreement, Amazon's total rental commitment is estimated at around ₹921 crore over 21.5 years, while the 2023 transaction entails an estimated rental outgo of ₹562 crore over nearly 18 years. Last month, Amazon Data Services India purchased 10.6 acres of land in Palava for ₹125.13 crore from Lodha Developers, adding to its previous acquisition of approximately 38.18 acres in November 2024 for ₹450 crore in the same region. With the new purchase, Amazon's cumulative investment in land acquisitions at this location rose to nearly ₹575 crore, while its combined landholding there has expanded to nearly 49 acres.
Last month, Amazon CEO Andy Jassy announced an additional $13 billion investment in India, bringing the company's total planned investment to nearly $48 billion by 2030. Of this investment, approximately $21 billion will be invested in AI and cloud infrastructure. The expansion will increase AWS data centre capacity in Mumbai and Hyderabad, providing startups, enterprises and government organisations access to AI chips, managed AI services, secure cloud technologies and developer tools. The additional land is expected to support the company's expanding data centre infrastructure as demand for cloud computing, artificial intelligence applications and enterprise data storage continues to rise.
According to Cushman & Wakefield, India is emerging as one of Asia-Pacific's most significant growth markets for digital infrastructure. The country ranks as the second-largest market in the region with 1.6 GW of operational capacity and is among the top three markets by development pipeline, with 3.1 GW under construction and planned. Mumbai remains the country's largest data centre market, attracting investments from global technology companies and infrastructure investors owing to its connectivity, enterprise ecosystem and access to subsea cable networks. India's data centre sector has witnessed strong investment activity over the past few years, driven by rapid digitalisation, rising cloud adoption and increasing demand from hyperscale operators.
