Anant Raj, a leading real estate developer in the NCR region, saw its shares surge 12% in intraday trading on Monday, September 15, hitting a high of ₹595.50 apiece, marking its biggest intraday jump in 13 months. The sharp rally followed reports that India is considering a tax exemption of up to 20 years for data center developers.
Though the company is known for its real estate activities, it diversified its portfolio towards data centers and set ambitious targets to capitalize on the growing demand for data center infrastructure.
The government is considering a tax exemption of up to 20 years for data centre developers, provided they meet targets on capacity addition, energy efficiency, and job creation, according to a draft of the National Data Centre Policy reviewed by Business Standard.
According to the draft, the Ministry of Electronics and Information Technology (MeitY) is likely to request the Ministry of Finance to allow input tax credit (ITC) on the goods and services tax (GST) levied on capital assets, such as data centre construction, heating, ventilation, and air conditioning.
“This will help create new jobs as well as strengthen domestic capacity in advanced technologies, such as AI, cloud computing, and cybersecurity, not just in metro cities but also in Tier-II and Tier-III towns,” an official told Business Standard.
Anant Raj data center capacity reaches 28MW
Anant Raj forayed into the data center sector in 2023 with a vision to invest ₹100 billion over the next few years to develop a 307 MW data center footprint. The company’s current DC operational capacity stands at 6 MW (including 0.5 MW of cloud capacity).
It has recently commissioned a 22 MW addition, taking its total capacity to 28 MW. Analysts from domestic brokerage firm Emkay Global Financial Services expect a client onboarding over the next 3-4 months.
Ahead, they expect the company to achieve 63 MW / 107 MW capacity by H2FY27 / FY28E and believe that the company’s overall target of 307 MW DC will be achieved by FY33-34E, contingent upon fundraising. Thus, the increase of cloud mix to 25% (company target) will be gradual and materialize by FY34.
Data centers boom
The demand for data centers in India is accelerating, driven by both structural and cyclical factors. A large internet user base generating troves of data, the government’s data localization push, and AI adoption are some of the structural tailwinds.
According to ICRA estimates, India’s data center (DC) operational capacity is expected to increase to 2,000–2,100 MW by March 2027 from around 1,150 MW as of December 2024.
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