Keystone Realtors, popularly known as Rustomjee Group, a prominent listed real estate developer, is poised to diversify its portfolio by entering the data centres segment and launching plotted development projects.
Traditionally focused on redevelopment in the Mumbai Metropolitan Region (MMR), the company is gradually expanding its footprint into new verticals. Additionally, Rustomjee Group plans to raise capital through a qualified institutional placement (QIP) of equity shares. Industry experts indicate that Rustomjee Group’s entry into the data centre sector is driven by its substantial land banks and proven development capabilities. Data centres, which house physical infrastructure for storing and sharing applications and data, include critical components such as switches, storage systems, servers, routers, and security measures. The capacity of data centres is typically measured in megawatts (MW) and gigawatts (GW).
Growing Potential of Data Centres in India
According to a report by JLL India, the Data Centre (DC) industry in India is on the brink of significant growth, with an anticipated addition of 791 MW capacity by 2026. This expansion is expected to necessitate 10 million sq. ft. of real estate space and attract investments totalling $5.7 billion. The burgeoning demand for data centres is primarily driven by the increasing adoption of Artificial Intelligence (AI). With AI usage projected to rise, the demand for Indian data centres is estimated to range between 650-800 MW during 2024-26.
The Indian government’s decision in 2023 to grant infrastructure status to data centres is a pivotal move aimed at facilitating easier access to institutional credit at lower rates and attracting foreign investments. This strategic initiative is expected to bolster the development and expansion of data centres across the country. A CBRE report highlights that data centres rank among the top three preferred alternative assets for investors in the Asia-Pacific (APAC) region, including India. The sector has witnessed substantial investments from global operators, real estate developers, and private equity funds eager to capitalise on the burgeoning data centre market in India. Between 2018 and 2023, India attracted investment commitments exceeding $40 billion from both global and domestic investors.
