Amazon Data Services India, the physical‑infrastructure arm of Amazon Web Services (AWS), has signed a new 17‑year‑and‑7‑month lease for an additional four acres of land in Mumbai’s Powai suburb. The 16,187.40‑square‑metre parcel, roughly 4 acres, will be available until February 12, 2044. According to the lease documents, the monthly rent is ₹2.76 crore, which translates to about ₹68.96 lakh per acre per month. The agreement also includes a one‑time premium of ₹72 crore and a 3 percent annual escalation in rent. Amazon and L&T have agreed to provide 24 rent‑free months spread across the lease term.

This transaction follows a series of land deals between Amazon Data Services and L&T in Powai. In 2022, Amazon leased 5.5 acres for the first phase of its data‑centre campus, and a year later it added a four‑acre parcel adjacent to the initial site. With the latest lease, Amazon now controls 13.5 acres in Powai across three agreements, underscoring its continued investment in data‑centre infrastructure in the city.

Amazon’s expansion in Mumbai is part of a broader strategy to grow its AWS presence in India. Earlier this year, the company announced a $13 billion investment in India to expand AI and cloud infrastructure, bringing its total planned spending on the country’s data‑centre capacity to $48 billion between 2026 and 2030. The Mumbai campus is one of several new facilities Amazon is developing in the country, including projects in Hyderabad and other metros.

Mumbai remains the largest hub for data‑centre development in India, with a growing number of global technology firms investing in the city’s infrastructure. The city’s central location, robust power supply, and proximity to major internet exchange points make it an attractive site for hyperscale operators. The Powai area, in particular, has become a focal point for data‑centre construction, with several large projects underway.

The lease terms reflect common industry practices for long‑term data‑centre agreements. Rent‑free periods are typically negotiated to offset construction costs and allow operators to build and commission facilities before revenue generation begins. The 3 percent annual escalation aligns with inflationary adjustments seen in similar contracts.

L&T, a leading engineering and construction conglomerate, has been developing data‑centre sites under its Cloudfiniti brand. The company has highlighted that the Powai parcel meets AWS’s requirements for power density, cooling, and connectivity. Amazon’s data‑centre design typically incorporates modular, high‑density racks and redundant power feeds. The 24 rent‑free months allow Amazon to offset the cost of building the facility’s infrastructure, including cooling systems and fiber connections, before the site becomes operational. This arrangement is common in the hyperscale sector, where operators seek to spread capital expenditure over a longer period.

AWS currently operates multiple regions in India, including Mumbai, Hyderabad, and Bengaluru. The company’s data‑centre capacity in Mumbai has grown from a single 10‑MW facility to a planned 30‑MW campus, with the new Powai lease expected to support additional capacity. Amazon has stated that the company’s India data‑centre strategy aims to support the country’s growing cloud and AI workloads, driven by the expansion of digital services and the rise of edge computing.

The expansion is expected to contribute to India’s growing demand for cloud services, driven by the country’s digital economy and the rapid adoption of artificial intelligence applications. AWS has been a leading provider of cloud infrastructure in India, with a presence in multiple regions across the country.

In summary, Amazon’s four‑acre lease in Powai adds to its growing footprint in Mumbai and aligns with its announced investment plans for India’s data‑centre market. The long‑term agreement, with significant rent‑free months and a substantial premium, reflects the company’s commitment to expanding its AWS infrastructure in the region.