Princeton Digital Group has partnered with K Raheja Corp's Mindspace Business Parks REIT to create its largest data centre campus in India at Mindspace Airoli West. The agreement includes a 20-year lease for five buildings across 16 acres, adding one million square feet to Princeton's portfolio. The project will enhance the REIT's total footprint to 1.6 million square feet, supporting the growing demand for data centres in Navi Mumbai, a hub for infrastructure and AI technology.
Global data centre operator Princeton Digital Group has formed a strategic partnership with K Raheja Corp's Mindspace Business Parks REIT to develop its largest data centre campus in India at Mindspace Airoli West. As part of this agreement, Mindspace REIT will construct three additional built-to-suit data centres, contributing another one million square feet to the Singapore-based provider's portfolio.
The deal includes a long-term lease of 20 years for five buildings across 16 acres, with initial rents set at INR100 per square foot per month, subject to regular escalations, according to an insider familiar with the development. Mindspace REIT has already built two data centres for Princeton Digital Group, totalling nearly 0.53 million square feet. Upon completion, the business park will consist of five data centre buildings, bringing the total footprint within the Mindspace REIT portfolio to around 1.6 million square feet. This development will be part of a larger 50-acre campus ecosystem at Mindspace Airoli West.
Ramesh Nair stated that the deal reinforces their commitment to diversifying their portfolio and entering high-growth sectors such as data centres. who declined to comment on the specifics of the agreement. Mindspace REIT will offer Princeton Digital Group a comprehensive range of turnkey services, including power infrastructure designed to meet sustainability objectives. These initiatives align with REIT's commitment to supporting digital transformation while ensuring environmental responsibility.
Navi Mumbai is becoming a leading hub for infrastructure, benefiting from its strategic proximity to submarine cable landing stations, a stable power supply with zero outages, the availability of renewable energy, and robust infrastructure. This micro-market is also well-equipped to support the growth of AI technologies, making it an ideal location for AI-enabled data centre campuses. Similar data centre deals have already been made by Amazon Web Services and Google in the area.
Data centres in India are emerging as a highly attractive growth opportunity for global institutional investors and prominent developers. The country has seen a surge of investments into the data centre market over the past two years, leading to the creation of multiple primary markets and the rapid expansion of campus sizes in major global cities. India's appeal among global data centre operators is largely due to data localization norms and the government's data centre policy, which aims to simplify regulations. This new policy is expected to facilitate necessary clearances and infrastructure development in a timely manner.
In conclusion, this strategic partnership highlights the increasing attractiveness of India's data centre market for global investors. With robust infrastructure and supportive government policies, the region is well-positioned to meet the demands of digital transformation, making it a prime location for future-focused data centre developments.
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