Lodha’s Data-Centre Bet: Value Creator or Risk?

Lodha Developers is turning its Palava land bank into a second growth engine as India’s data-centre market expands. Operational capacity was about 1,030 MW in 2024 and could reach 1,825 MW by 2027 and 4,500–8,000 MW by 2030, driven by cloud computing, artificial intelligence and digital consumption. Lodha’s green data-centre park near Navi Mumbai covers about 660 acres. It has monetised 130 acres and plans to sell another 150 acres over the next three to four years. A further 300 acres remains on its balance sheet. The park supports 11–15 MW per acre and uses recycled water. AWS, STT and Digital Edge India are its customers. The Digital Edge deal was completed at about ₹42.5 crore per acre, versus ₹21 crore in 2025. Management estimates fair value at nearly ₹65 crore per acre. Palava land values have increased over 16 times in five years. Lodha plans to use Phase 1 sale proceeds to build 1 GW of powered shell capacity across about 90 acres. Lodha will provide the structure and power connection, while operators run the facilities. The project could generate over ₹2,000 crore of annual rental income by FY32, helping lift annuity income tenfold to ₹3,000 crore. The strategy is supporting earnings. In Q1FY27, revenue rose 43.1% year-on-year to ₹5,000 crore, net profit jumped 103.3% to ₹1,373 crore and adjusted EBITDA increased 79.1% to ₹2,150 crore. The EBITDA margin expanded 860 basis points, helped by land sales. For shareholders, the opportunity is meaningful: the plan can unlock land, diversify income beyond housing and create recurring cash flows. Yet execution, power availability, funding and demand remain risks. The bet is attractive but value will depend on timely commissioning, disciplined capital allocation and converting capacity into sustained rental income.