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Google looking to acquire land in Navi Mumbai for its captive data center in India: Report

Google is currently undergoing the necessary procedures for the leasehold land, which is presently under the ownership of the Maharashtra Industrial Development Corporation.

Google, owned by Alphabet Inc, is currently engaged in advanced negotiations to secure a 22.5-acre land parcel in Navi Mumbai’s Juinagar. The strategic move aims to establish Google’s maiden captive data center within India, as per a report by Economic Times.

The report indicates that the California-based company is currently undergoing the necessary procedures for the leasehold land, which is presently under the ownership of the Maharashtra Industrial Development Corporation (MIDC). Originally designated for Herdillia Chemicals, the lease rights for the plot are currently held by Gramercy Trade Industries, based in Pune.

The potential transaction is estimated to be valued at approximately Rs 850 crore, factoring in prevailing property rates in the surrounding locality along with MIDC’s transfer charges, as disclosed by the aforementioned report.

It further stated that the deal was reaching its final stages and may be concluded quite soon. The captive data center in question is expected to have a capacity of several hundred megawatts due to the size of the land parcel, the report also added.

Queries sent via email to Google have remained unanswered, while Gramercy Trade Industries has opted not to comment on the matter.

Major players in the technology sector such as Google, Microsoft, and Amazon are increasingly establishing hyperscale data centers across India, capitalizing on the burgeoning market fueled by a surge in digitalization post-pandemic.

Dahiya emphasized that India’s robust submarine cable infrastructure linking Mumbai and Chennai to key global regions such as Singapore, Southeast Asia, Europe, and the Middle East has positioned the country as an attractive destination for data center development and investment within the Asia-Pacific region.

The demand for data centers in India is poised to escalate rapidly, propelled by the escalating consumption of data, the digital transformation of the economy, the advent of 5G technology, and prevailing data localization imperatives. Additionally, the anticipated growth in over-the-top (OTT) video streaming, online gaming, augmented reality, and digital commerce propelled by 5G is expected to fuel data usage.

The growing inclination towards India among prominent data center operators is closely tied to local data localization regulations and governmental efforts to streamline regulations, expedite approvals, and fortify infrastructure in a time-efficient manner.

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