Microsoft has again made headlines with its latest investment in Pune, acquiring two significant land parcels in the Hinjewadi area. The tech giant is set to invest nearly ₹1,000 crore for these acquisitions, signalling a strong push to expand its data centre operations in India. This move aligns with Microsoft’s broader strategy to strengthen its presence in the country’s rapidly growing digital infrastructure landscape.
In August 2024, Microsoft initiated its expansion in Hinjewadi by acquiring a 16.4-acre land parcel. Soon after, the company followed up with a second acquisition of 16 acres in the same area. According to Pravin Deshpande, Pune rural joint district registrar, both transactions have been finalised, and the land is set to host new data centres. The tech giants acquired the first parcel from Ashoka Buildcon’s Viva Highways, while the second from Indo Global Infotech City, a company owned by Sanjiv Arora.
Interestingly, both pieces of land are situated outside the Maharashtra Industrial Development Corporation (MIDC) limits. This allows Microsoft to move forward with its construction plans without needing approvals from the industrial development authority, easing the entire process. These acquisitions align with a broader trend for Microsoft in Pune, following a 25-acre purchase in Pimpri Chinchwad in 2022, further underlining the company’s focus on expanding in this region.
Notably, Microsoft is not the only company that recognises Pune’s importance in this sector. Other major players, such as ST Telemedia and AdaniConnex, have long operated data centres in the city. For example, ST Telemedia has a facility in Dighi with a power capacity of 40 MW, while AdaniConneX has a 70 MW capacity centre in the city.
Microsoft’s recent land acquisitions come when India’s data centre industry is projected to grow. According to a report by global real estate firm JLL, the country is expected to add 791 MW of data centre capacity by 2026, requiring around one crore square feet of space. This surge in demand is largely fueled by the adoption of artificial intelligence (AI) and the exponential growth of cloud services, which in turn are pushing companies to expand their data storage and computing infrastructures rapidly.
Microsoft operates more than 300 data centres in 34 countries. Their expansion in India aligns with the company’s broader strategy to bolster infrastructure and meet the growing demand for cloud services. By 2026, Microsoft aims to employ nearly 300 full-time staff and contractors at its data centres across India, covering roles such as campus management, IT operations, mechanical engineering, and building maintenance.
India’s larger data centre industry is on the cusp of a boom. “Demonstrating this trend, our data intelligence research on registered land transactions indicates that more tech-oriented global firms are expanding their presence in India for new office spaces, development centres, and data centres,” said Anand Moorthy, Co-founder of proptech firm Square Yards.
Real estate experts predict the Indian data centre market will attract investments of nearly ₹48,000 crore ($5.7 billion) by 2026, with a demand for 650-800 MW capacity between 2024 and 2026. Cloud service providers, in particular, are adapting their infrastructure to accommodate this increasing AI-driven demand.
By expanding its data centre operations, Microsoft is positioning itself to meet the surging needs of cloud computing, AI, and digital technology. As this industry grows, cities like Pune and Hyderabad will play pivotal roles in building India’s digital infrastructure.
Read more through the links below to uncover the key trends and market leaders driving this growth:
The Times of India – https://bit.ly/3XJl4yR
Published Date: 18 Sep, 2024
