Equinix Inc Expands Operations in Mumbai with New Land Acquisition
Equinix Inc, a leading global digital infrastructure company, is set to further cement its presence in India by acquiring a prime land parcel that houses one of its existing data centres in Mumbai’s Chandivali suburb.
A Strategic Acquisition
Through its subsidiary, Equinix India, the Nasdaq-listed company has purchased the land from the landlord of its operational 6MW data centre, MB2, for an estimated ₹155 crore.
Details of the Deal
The acquisition encompasses a 1.4-acre land parcel obtained from Overseas Packing Industries and Warden Hyforce. The valuation of this land amounts to over ₹110 crore per acre, reflecting prime real estate investment in a burgeoning sector.
Background of the Data Centre
Equinix originally developed the data centre featuring over 1,500 cabinets across a built-up area of nearly 58,000 sq ft. This facility has been operational since 2019, having previously existed under a lease.
Financial Aspects
Documents obtained via the realty data analytics platform CRE Matrix indicate that Equinix paid a stamp duty of over ₹10.56 crore for this registration, completed on November 21.
Current Infrastructure in Mumbai
Currently, Equinix India operates two data centres in Mumbai—MB1 and MB2—which are interconnected by dark fibre to create a virtual campus. The company aims to operationalize two additional data centres in the city in the coming months.
Future Expansion Plans
Manoj Paul, the Managing Director of Equinix India, stated their commitment to expanding operations through greenfield projects. Discussions are underway to acquire more land parcels in key metro cities, aiming for significant investments in the next 2-3 years.
Recent Investment Initiatives
Last year, Equinix announced a notable investment of $42 million dedicated to its fourth data centre in Mumbai. Additionally, an $86 million investment is set aside for MB3, the third data centre currently under development.
New Developments in Chennai
In March 2022, the company expanded into the Chennai market by acquiring a 5.5-acre land parcel, with plans to invest $65 million to develop this data centre.
Expanding Capacity in Navi Mumbai
Furthermore, Equinix operates a data centre in Navi Mumbai’s Airoli, which is undergoing expansion to increase its capacity from 350 cabinets to 700 cabinets.
Drivers of Data Centre Growth in India
India’s data centres are poised for rapid growth, fueled by the adoption of artificial intelligence across diverse sectors, the increasing use of cloud storage solutions by businesses and consumers, and the swift rollout of 5G technology nationwide.
Investment Trends in India’s Data Centre Market
Amidst rising demand, the past two to three years have seen investments pouring into India’s data centre markets, indicative of the sector’s promising trajectory.
Infrastructure as an Advantage
India’s strategic submarine cable infrastructure linking key metros like Mumbai and Chennai to regions including Singapore, Southeast Asia, Europe, and the Middle East positions the country as an attractive site for future data centre development and investment.
Conclusion
As Equinix continues to expand its footprint in India, industry observers eagerly anticipate the impacts of these investments on both the local and regional digital infrastructure landscape.
Questions and Answers
-
What did Equinix acquire in Mumbai?
Equinix acquired a 1.4-acre land parcel housing its operational data centre MB2 in Mumbai’s Chandivali suburb.
-
How much did Equinix pay for the land acquisition?
The company paid approximately ₹155 crore for the land, which values it at more than ₹110 crore per acre.
-
What are Equinix’s plans for future expansion in India?
Equinix aims to expand through greenfield projects and is in discussions to acquire additional land parcels in key metro cities over the next 2-3 years.
-
What recent investments has Equinix made in Mumbai?
Equinix announced an investment of $42 million for their fourth data centre and $86 million for the third data centre (MB3) currently under development.
-
What factors contribute to the growth of data centres in India?
The growth is driven by the increasing integration of artificial intelligence, the widespread adoption of cloud storage, the rollout of 5G, and investments in the submarine cable infrastructure.
