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Lodha Developers is planning to invest around INR 10,000–11,000 crore to develop 1 gigawatt of data centre capacity in the Mumbai Metropolitan Region. The project will come up within its Palava township and follow a build-to-suit model for global operators. The company has already secured key clients and will fund the development largely through land monetisation. This move is part of its strategy to scale rental income and expand into digital infrastructure, alongside a larger 2.5 GW data centre park planned in the region.
Lodha Developers is set to develop around 1 gigawatt (GW) of data centre capacity in the Mumbai Metropolitan Region (MMR), with a planned investment of about INR 10,000–11,000 crore. The development will be located within its Palava township near Mumbai and will follow a build-to-suit model, where facilities are designed for specific operators and leased on a long-term basis. Advertisement
The planned capacity will be developed on nearly 100 acres, forming part of a larger 400-acre land parcel identified for a data centre park. This land is already owned by the company, giving it an advantage in execution and cost control. The broader park is expected to support up to 2.5 GW of data centre capacity in phases, making it one of the larger such developments in the region.
Funding for the project will largely come from internal sources. The company plans to monetise land parcels within the data centre park, with expectations of generating over INR 12,000 crore from these sales starting FY27. This approach allows Lodha to limit external borrowing while still pursuing large-scale infrastructure development.
The company has already secured anchor clients, including Amazon Web Services and ST Telemedia Global Data Centres. Their presence is expected to support faster leasing and improve the viability of the project from the initial phases. The build-to-suit approach also reduces vacancy risk, as capacity is typically developed against confirmed demand.
This initiative is part of Lodha’s broader strategy to expand its annuity income portfolio. The company is looking to scale its rental income from around INR 290 crore at present to nearly ten times over the next six years. Along with data centres, it is also focusing on assets such as office spaces, retail developments and warehousing to create stable income streams.
The move builds on earlier commitments made by the company in Maharashtra. Lodha had entered into an agreement with the state government to invest around INR 1 trillion, in addition to a prior commitment of INR 30,000 crore, towards developing data centre infrastructure. These plans indicate a long-term focus on digital infrastructure alongside its core residential business.
Lodha continues to hold a large land bank of about 3,900 acres across Palava and Upper Thane. This land is expected to generate over INR 10 trillion in potential revenue over the next few decades, with estimated margins of around 50 per cent. The availability of such land parcels supports its expansion into new real estate segments without the need for significant land acquisition.
On the operational side, the company has reported pre-sales of INR 20,530 crore in FY26, reflecting a year-on-year growth of about 16 per cent. Strong residential sales provide financial support and cash flow stability, enabling the company to invest in long-gestation assets like data centres.
The entry into data centres also reflects a broader shift in the real estate sector, where demand is increasing due to growth in cloud services, data storage needs and digital consumption. Developers with access to large land parcels and infrastructure capabilities are gradually entering this segment to build long-term, stable income streams.
For more similar or related stories, you can check the links below.
https://propnewstime.com/getdetailsStories/Mjg2Njc=/lodha-developers-reports-23--rise-in-quarterly-pre-sales-but-misses-fy26-target
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