Privately-held Indian developer RMZ Corporation is investing $1.7 billion to construct two data centers in response to the increasing demand for data center services, particularly in relation to artificial intelligence developments. This strategic move aims to diversify RMZ’s business portfolio, as expressed by chairman Manoj Menda, who noted the necessity to lessen reliance on a single asset class and exclusive business focus.

According to a report by Jones Lang LaSalle, India’s data center industry is projected to attract investments totaling $5.7 billion by 2026 due to a surge in AI service adoption across various sectors. To establish itself as a significant player in the generative AI arena, India urgently needs to enhance its data center infrastructure, as stated by Siemens AG’s chief technology officer Peter Koerte.

While Nvidia has teamed up with billionaire Mukesh Ambani for infrastructure development in AI, another prominent billionaire, Gautam Adani, plans to dedicate $6 billion towards building data centers.

RMZ’s data centers are to be located in Navi Mumbai, Maharashtra, and Chennai, Tamil Nadu. The Navi Mumbai facility is already partially operational, while construction on the Chennai site is set to begin shortly. The two centers will collectively provide approximately 250 megawatts of capacity, a crucial measure for the energy demands of the servers they will host.

In addition to this endeavor, RMZ is undergoing a reorganization into five operational branches, separating its commercial real estate, luxury housing, and hospitality sectors from its industrial and logistic ventures, including the new data center operations.

The company is also exploring partnerships with sovereign wealth funds and global investors, having already established two partnerships with the Canada Pension Plan Investment Board and Mitsui Fudosan for developing commercial offices in India.

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