Blackstone, Panchshil to Set Up India’s Largest Hyperscale Data Centre (500 MW) With $2.41 Bn Investment

Blackstone Group and Panchshil Realty are collaborating to develop India's largest hyperscale data center in Navi Mumbai. This ambitious project will have a capacity of 500 MW and will be powered by up to 65% renewable energy. The data center will span 14 buildings, covering over 3 million square feet.

This marks a significant Foreign Direct Investment (FDI) following Blackstone's recent agreement with the Maharashtra government at Davos.

The Blackstone-Panchshil data center will be located in Navi Mumbai, specifically in the Ghansoli area, adjacent to Reliance Corporate Park. It will span 14 buildings, covering over 3 million square feet.

The project involves an investment of over Rs 20,000 crore (approximately $2.41 billion USD). The data center will have a capacity of 500 MW, making it the largest hyperscale data center in India. Up to 65% of the data center's energy needs will be met through renewable sources, making it a significant step towards sustainable infrastructure.

Panchshil Realty's subsidiary, Gramercy Info Park, has acquired nearly 50 acres of land for Rs 900 crore, including consideration, levies, and charges.

The data center will cater to hyperscaler companies specializing in high-performance computing, cloud computing, artificial intelligence, and data-intensive applications. This project is poised to significantly enhance India's digital infrastructure and aligns with the country's growing demand for data storage and processing capabilities.

Interestingly, in January it was reported that Mukesh Ambani led Reliance Industries is planning to build the world's largest data centre in Jamnagar, Gujarat. The facility is expected to have a capacity of 3 GW, significantly surpassing the current largest data centre, Microsoft's 600-megawatt site in Virginia.

This Blackstone-Panchshil project marks the first significant FDI following Blackstone's recent agreement with the Maharashtra government at the World Economic Forum in Davos.

Blackstone is making a significant move in the AI revolution by investing $25 billion in a data center empire. This initiative includes the $10 billion acquisition of QTS in 2021, positioning Blackstone as a major player in the data center market. The expansion aims to meet the growing demand for computing power driven by advancements in AI.

However, this expansion comes with challenges, such as the enormous power requirements of these data centers, which could strain existing power grids and raise environmental concerns. Additionally, the economic impact of these data centers is unevenly distributed, leading to community divisions over the benefits and drawbacks of having vast industrial parks filled with computers.