Realty firms eye revenue upside, portfolio diversification from data centre boom

Data centres are increasingly becoming a key part of the real estate landscape, as reality firms—with rich expertise in land acquisition, construction and dealing with government approvals—are seeing them as opportunities to build long-term assets with continuous revenue flow.

- PRACHI PISAL

Anant Raj, Lodha, L&T Realty, DLF, Panchshil Realty, Rustomjee, Hiranandani Group, Mindspace Reit and many more realty firms are seeing data centres as "future-proof assets" with long-term returns.

While some have been in the segment that is promising nearly 20 per cent returns on investment, more players are getting into this space as they diversify their portfolios amid a sharp upside in demand for data centres, stemming largely from global capacity centres and industry's quickened AI adoption.

"While our core strength lies in real estate development, we see data centres not only as a complementary extension of our capabilities but also as a transformative business opportunity aligned with the country's accelerating digital evolution," said Amit Sarin, managing director, Anant Raj.

Sarin's firm is targeting the development of 307 Mw of capacity across its three campuses, with an investment commitment of over ₹10,000 crore over the next four-five years.