The real estate sector in India is witnessing an interesting diversification, with Lodha Developers exploring opportunities beyond residential and commercial projects. The company has signed a memorandum of understanding (MOU) with the Government of Maharashtra to set up a Green Data Centre Park at Palava.
With two anchor operators, Amazon Web Services (AWS) and ST Telemedia (STT), already on board, Lodha’s entry into data centres could mark a significant expansion of its business portfolio.
Backed by strong state-level incentives and a supportive central policy draft, the Palava Data Centre Park is poised to become one of the country’s most advanced digital infrastructure hubs, with scalability of up to 3 gigawatt (GW) and potentially beyond.
About the Company
Lodha Developers Ltd, India’s leading real estate developer, has a market capitalization of Rs. 1,17,479.24 crore and a current market price (CMP) of Rs. 1,176.45. The company has delivered approximately 110 million square feet of real estate and is developing over 130 million square feet under its ongoing and planned projects across residential, commercial, and digital infrastructure segments.
Palava Data Centre Park: A New Venture
Lodha Developers, formerly Macrotech Developers, is planning a major push into developing and operating data centres, anchored around the government-approved data centre park on its 400-acre land parcel in Palava. Historically, the company has sold land parcels within Palava to hyperscalers and established data centre operators such as Amazon and ST Telemedia. With India still underserved in data centre capacity, this initiative is expected to provide substantial topline and profit opportunities over the long term, while requiring relatively modest investments.
Incentives and Strategic Advantage
The Maharashtra state government’s data centre policy is projected to deliver savings of up to Rs. 9,000 crore over a 20-year period, including waivers on GST and electricity duty. Combined with central-level policy support, these incentives significantly enhance the viability and attractiveness of the Palava Data Centre Park.
Management Perspective
Sushil Kumar Modi highlighted the strategic opportunity, stating, “We are now brainstorming ourselves that this is a new business opportunity for us where potentially up to 3 gigawatt (GW) in capacity can be built on the 400-acre site, but we will continue selling some land for data centres.
Even if we only develop 250 megawatt (MW) over the next five years, each MW could generate around Rs. 10 crore to Rs. 15 crore of profit annually. With the ability to deliver 8 to 10 MW per acre, each acre could potentially generate Rs. 100 crore, and the full 400-acre site could deliver between $5 billion and $10 billion.”
He added, “Annual profits from the data centre business, once capacity reaches 250 MW, are expected to be around Rs. 2,500 crore, based on investments of approximately Rs. 800 crore to Rs. 900 crore per year to develop 50 MW of capacity. The 250 MW target could be achieved entirely through the company’s own capital, without raising any funds externally.”
Location and Infrastructure Advantage
Lodha’s Palava land parcel spans around 4,500 acres near Dombivali in Thane district. Previously considered less viable due to poor connectivity, the area is now gaining prominence with infrastructure developments such as the upcoming Airoli-Katai Naka link, planned connections to the Mumbai Metro’s Orange Line, and the Mumbai-Ahmedabad high-speed railway. These projects are expected to enhance accessibility to Mumbai and Navi Mumbai, contributing to rising land and home prices in the region.
-Manan Gangwar
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