Indian real estate and investment firm RMZ plans to increase its data centre capacity to between 2GW and 3GW over the next five years, as part of a wider $35 billion investment push.
The Bengaluru-headquartered company currently has 250MW of capacity, but is in the final stages of discussions for three new data centre projects that would take its total capacity above 1GW, Deepak Chhabria, president of RMZ Infrastructure, told Reuters.
RMZ Plans Major Data Centre Expansion
RMZ also plans to acquire land by the end of 2026 that could support another 2GW of data centre capacity.
The expansion forms part of a broader investment plan first announced in April, when RMZ said it would invest more than $35 billion over five years across co-location data centres, AI factories, mixed-use commercial office developments and residential projects.
A co-location data centre is a facility where companies can house their own servers while the operator provides the power, cooling, security and network connectivity needed to keep them running.
That matters because demand for computing infrastructure is rising quickly as cloud services, enterprise AI and digital platforms require more physical capacity behind the scenes.
“We are seeing only positive signs from some of the hyperscalers, and I think by the middle of this year, we will start ramping up capacity as we get clients signed up,” Chhabria told Reuters, without naming customers.
AI Demand Is Driving Capacity Plans
RMZ’s expansion comes as India becomes a more competitive market for AI infrastructure and cloud capacity.
Global technology firms and Indian conglomerates have pledged billions of dollars toward data centres and AI infrastructure in the country. Reuters reported that India’s digital infrastructure sector is expected to attract more than $50 billion in planned spending across data centres, cloud and AI ecosystems.
RMZ, which operates across major Indian cities including Bengaluru, Mumbai and Hyderabad, now sees data centres as an entry point into adjacent infrastructure businesses. Chhabria said the company’s expansion could also move into areas such as graphics processing units, power infrastructure and software.
“Now we will use that as a stepping stone eventually to go up the food chain and build the bottom layer of power,” he said, referring to RMZ’s plans to move deeper into the infrastructure that supports AI and cloud computing.
GPUs, or graphics processing units, are chips used to run many AI workloads. They’ve become a critical part of the AI infrastructure market because large models need high levels of processing power.
RMZ And Colt Explore Growth Opportunities
RMZ built its current 250MW data centre capacity through a joint venture with UK-based Colt Data Centre Services.
The companies announced the partnership in November 2024, with plans to invest $1.7 billion in the Indian data centre market. The initial focus was on sites in Navi Mumbai and Ambattur, Chennai, with a third site expected to be added later.
Colt said at the time that the data centres would have a combined capacity of around 250MW once all phases were complete. Chhabria told Reuters that RMZ and Colt are continuing to explore growth opportunities together.
The planned expansion would mark a major step up for RMZ, moving the company from a real estate and investment background into a larger role in India’s digital infrastructure market.
It would also place RMZ in a market where land, power availability, cooling capacity and customer commitments are becoming just as important as traditional property development.
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