Amazon Data Services India Pvt Ltd leases 4 acres of land in Mumbai's Powai from L&T for over ₹650 crore

Amazon had leased 5.5 acres of land from L&T in 2022 as part of its proposed data centre campus in Powai, followed by additional 8 acres in the last three years

Amazon Data Services India Private Limited has pre-leased around four acres of land in Mumbai's Powai from Larsen and Toubro (L&T) Limited for a period of over 17 years, with the total rental outgo estimated at more than ₹650 crore over the lease tenure, according to property documents accessed by Propstack.

Amazon Data Services India Private Limited has pre-leased around four acres of land in Mumbai's Powai from Larsen and Toubro (L&T) Limited for over ₹650 crore. (Picture for representational purposes only) (Pexel)

The latest transaction is part of Amazon's continued expansion of its data centre footprint in Mumbai and follows two earlier land leases in the same location, taking its total leased land in Powai to approximately 13.5 acres, Propstack said.

According to the lease documents, Amazon Data Services has pre-leased approximately 16,187.40 sq m equivalent to around 4 acres of land for the development of a data centre facility in Mumbai's Powai.

The lease has been executed with L&T Limited, with the agreement set to expire on February 12, 2044. While the pre-lease commencement date is yet to be defined, the overall tenure works out to approximately 17 years and seven months, or 211 months.

As part of the transaction, Amazon Data Services will pay a monthly rent of approximately ₹2.76 crore, translating to a lease rental of ₹68.96 lakh per acre per month. The agreement also provides for an annual rental escalation of 3%. Property documents further show that the tenant has paid a premium of ₹72 crore to the lessor. Based on the lease terms, which include a 24-month rent-free period spread across the tenure, the total rental commitment is estimated to exceed ₹650 crore, the documents show.

The latest transaction forms part of Amazon's phased expansion in Powai. According to Propstack, the company leased 5.5 acres of land from L&T in 2022 as part of the first phase of its proposed data centre campus. This was followed by another lease of four acres in 2023 adjacent to the original parcel. With the current agreement, Amazon's total leased landholding at the site has increased to around 13.5 acres, the documents show.

An email query was sent to Amazon Data Services India Pvt Ltd and L&T. The story will be updated if a response is received.

Mumbai: A Choice for Data Centres?

According to real estate consultants, Mumbai continues to be India's largest data centre market due to its strong fibre connectivity, access to multiple submarine cable landing stations, reliable power infrastructure and concentration of enterprise customers. The city has witnessed significant investments by hyperscalers, cloud service providers and global technology companies as demand for cloud computing, artificial intelligence workloads and digital services continues to rise.

Real estate consultants say that Powai, in particular, has emerged as an important commercial and technology hub because of its strategic location between Mumbai's eastern and western suburbs and its proximity to key business districts. The area already houses several technology companies, corporate offices and research facilities, making it an attractive destination for digital infrastructure investments.