Google Ventures into Data Center Development in India with Land Acquisition in Navi Mumbai

Navi Mumbai, 27th March 2024: Google, a subsidiary of Alphabet Inc., is in advanced negotiations to acquire a 22.5-acre land parcel in Juinagar, Navi Mumbai, for the construction of its inaugural captive data centre in India, according to sources familiar with the matter.

The land parcel, currently held under lease by Pune-based Gramercy Trade Industries and originally allotted to Herdillia Chemicals by the Maharashtra Industrial Development Corporation (MIDC), is undergoing due diligence by Google. The potential transaction is estimated to be around Rs 850 crore, factoring in prevailing property rates and MIDC’s transfer charges in the area.

Sources suggest that the deal is nearing conclusion, with the proposed data centre expected to have a capacity of several hundred megawatts, given the substantial size of the land parcel. While Google has previously leased space in colocation data centres in Navi Mumbai and Noida, this venture marks its first foray into developing its data centre infrastructure in India.

Queries sent to Google via email remained unanswered, and Gramercy Trade Industries declined to provide comments on the matter.

Major technology firms such as Google, Microsoft, and Amazon are establishing hyperscale data centres in India to tap into the rapidly growing market, which has seen accelerated digitalization in the wake of the pandemic.

Vivek Dahiya, Managing Director and Head of Data Centers for Asia Pacific at Cushman & Wakefield, notes that the trend of global cloud companies acquiring and constructing their data centres has been apparent in recent years, particularly with the surge in digitalization post-COVID.

India’s robust submarine cable infrastructure connecting Mumbai and Chennai to key global hubs in Singapore, Southeast Asia, Europe, and the Middle East has positioned the country as an attractive location for data centre development and investment in the Asia-Pacific region.

With a population exceeding 1.4 billion and a burgeoning focus on digital service delivery, India presents a significant market opportunity for expanding coverage, capacity, and connectivity options for both global service providers and local enterprises.

Driven by escalating data consumption, digitization efforts, the advent of 5G technology, and data localization mandates, demand for data centres in India is anticipated to grow substantially. Additionally, the proliferation of 5G-enabled services such as OTT video streaming, online gaming, augmented reality, and digital commerce is expected to further propel data usage in the country.

The growing preference for India among global data centre leaders is closely tied to local data localization regulations and government initiatives aimed at streamlining regulatory frameworks, expediting approvals, and facilitating infrastructure development within stipulated timelines.