Larsen & Toubro (L&T) is making a major push into India’s growing data infrastructure sector with plans to invest Rs 3,600 crore in three new data centres in Panvel and Mahape in Maharashtra, and Bengaluru in Karnataka.

Once the three data centres become operational, L&T’s total capacity will increase from 32 MW to 150 MW by 2027, reinforcing its position as a key player in the country’s digital ecosystem.

The estimated cost of setting up a data centre in India is Rs 35-40 crore per MW, making L&T’s investment a significant financial commitment.

With businesses increasingly relying on cloud computing, AI, and digital transactions, the demand for high-performance data centres has surged. L&T, already operating facilities in Mumbai and Chennai, and is now focusing on expanding its footprint in Maharashtra.

Panvel and Mahape has emerged as crucial hubs due to their strategic location, connectivity, and access to stable power supply. These two regions are quickly gaining prominence in India’s data infrastructure landscape, competing with traditional IT centres like Bengaluru, Pune, and Hyderabad.

The accelerated and sustained growth of cloud services adoption has transformed the world of information technology (IT) over the past decade, repositioning enterprise IT, previously considered a pure support function, as a primary player in operations, new product development, and in-house innovation hubs.

Strategically balancing a multi-cloud strategy that intelligently identifies workloads, operations, and teams that are operating in the cloud, in a hybrid cloud/on-premise arrangement, or in on-premise data centers

According to an IBEF report, India's data centre capacity is projected to experience considerable growth. The current under-construction capacity additions are estimated to reach 1.03 GW by 2028. Additionally, there are plans for further capacity expansion of 1.29 GW, bringing the total projected data centre capacity in India to 3.29 GW by 2028.

India's data centre market value is projected to grow at a CAGR of 10.98% to a projected US$11.6 billion by 2032.

Why Panvel and Thane? 

Strategic location: Both are part of Mumbai Metropolitan Region (MMR), ensuring excellent connectivity to Mumbai, Pune, and other key business hubs.

Panvel’s advantages 

• Close to Navi Mumbai International Airport (upcoming).
• Lower land costs compared to Mumbai, making large-scale data centres feasible.
• Proximity to undersea cable landing stations in Mumbai ensures high-speed global connectivity.

Thane’s strengths:

• Well-developed IT and business ecosystem with strong infrastructure.
• Reliable power supply and robust fiber optic networks crucial for data centres.
• Access to a skilled workforce in technology and data management.

Maharashtra’s data centre-friendly policies, including investment incentives and streamlined regulations, attract major players. As cloud computing, AI, and digital transactions grow, Panvel and Thane are becoming key data centre destinations to support India’s expanding digital economy.