New Launch - India Real Estate Report 2026.
Data centres are quietly becoming one of the most consequential categories of commercial real estate in India, and Mumbai's Powai is fast establishing itself as the country's most sought-after address for hyperscale operators. Amazon Data Services India has pre-leased approximately 4 acres of land in Powai from Larsen and Toubro, with the agreement running until February 2044 and total rental outgo estimated at more than ₹650 crore over the lease tenure, according to property registration documents accessed by Propstack.
Amazon's growing Powai data centre footprint
This is not Amazon's first land transaction at this location. The company has now completed three separate land leases in Powai, with the latest addition of around 16,187 sq m bringing its total leased land in the micro-market to approximately 13.5 acres. The pre-lease commencement date is yet to be confirmed, but the agreement's long tenure signals a committed, multi-phase development rather than a speculative land hold. A monthly rent of around ₹3.18 crore has been agreed, with escalations built into the lease structure over its duration. The counterparty, L&T, is one of India's most credible landlords for institutional-grade industrial and infrastructure assets, which reduces execution risk and simplifies the regulatory pathway for a development of this complexity.
Why Powai keep drawing data centre operators
Powai's appeal for data centre development rests on a combination of factors that are difficult to replicate elsewhere in Mumbai. The area offers proximity to major commercial and technology employers, access to high-capacity power infrastructure, established connectivity to submarine cable landing stations and a planning environment that has historically been supportive of large-format industrial and technology facilities. Land availability at scale is increasingly constrained in Mumbai's core business districts, making Powai one of the few locations where hyperscale operators can accumulate the contiguous acreage they need for campus-style data centre development. Amazon's three-lease accumulation strategy in a single micro-market is a clear expression of that logic.
The commercial real estate angle
For the property market, long-duration data centre leases of this kind represent a category of demand that differs meaningfully from conventional commercial office or warehouse tenants. A 17-year pre-lease with a globally creditworthy tenant generates annuity-style rental income with very low vacancy risk, which makes data centre land and buildings attractive assets for institutional landlords and real estate investors. L&T's position as lessor on multiple Amazon transactions at the same location also demonstrates how a single well-located landowner can capture a disproportionate share of hyperscale demand by providing the scale, reliability and institutional credibility that operators require. Other landowners in Mumbai and Navi Mumbai with large, well-serviced industrial parcels are watching this dynamic closely.
India's data centre real estate moment
Amazon's continued Powai expansion sits within a broader surge of data centre investment across India. The country's digital infrastructure requirements are growing rapidly, driven by cloud adoption, AI workloads, streaming and the expansion of digital public infrastructure. Mumbai, Chennai and Hyderabad are the three primary data centre markets, with Mumbai commanding the largest share of current capacity and the deepest pipeline of committed investment. As hyperscale operators including Amazon, Microsoft and Google continue to add capacity in response to cloud and AI demand, the commercial real estate they occupy is becoming a distinct and increasingly important asset class, with lease terms, tenant quality and infrastructure specifications that differ substantially from conventional industrial or office property but generate comparable or superior long-term returns for the right landlords.
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