Puravankara Data Centre Exploration

Puravankara is exploring new growth avenues and has studied entry into the data centre segment, with the managing director indicating that timing is now more favourable. This strategic exploration comes as the company diversifies its portfolio beyond residential into plotted developments, warehousing, logistics and industrial hubs.

The company's interest in data centres aligns with a broader industry trend. India's fast-growing data centre sector is creating opportunities for real estate developers with expertise in land acquisition, IT parks and infrastructure development—developers bring exactly what international operators lack: land in the right places, regulatory relationships built over decades, construction networks priced at Indian market rates, power infrastructure already in place, and financial structuring knowledge.

India's data centre market was valued at approximately USD 9.59 billion in 2025 and is projected to reach USD 31.28 billion by 2035, expanding at a CAGR of 12.69% during 2026-2035. The industry is entering a high-growth phase supported by rising cloud adoption, digitalisation and growing demand for AI infrastructure, with a recorded 24% CAGR between 2019 and 2024.

Mumbai accounts for 53% of operational data centre supply, followed by Chennai at 20%, with Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, West Bengal and Karnataka attracting nearly 45% of total capital commitments. The Draft National Data Centre Policy 2025 proposes incentives including up to 20 years of conditional tax exemptions and 100% electricity duty exemption, creating the most favourable development environment Indian data centres have seen.

Unlike traditional commercial real estate, competitive advantage for developers will increasingly depend on access to uninterrupted power supply, fibre connectivity, faster approvals, partnerships with global hyperscalers or specialist operators, and financial strength to fund capital-intensive projects, rather than land ownership alone. Peer developer Anant Raj Limited has committed INR 18,000 crore to data centres and tied up with French IT firm Orange Business to offer cloud services alongside infrastructure.

Puravankara's broader commercial expansion includes plans to build 5 million square feet of Grade A office space in Bengaluru, Pune and Mumbai, targeting Rs 400 crore annual rental income. The data centre exploration represents a natural extension of Puravankara's existing commercial and infrastructure capabilities, positioning the company to participate in India's emerging digital economy.