Why This MoU Matters: An Overview of the Investment
The Scale of the Commitment
Under the MoU with the Andhra Pradesh Economic Development Board (APEDB), Anant Raj Cloud plans to execute the project in two phases, investing ₹4,500 crore to build modern data center infrastructure and a well-integrated IT park for cloud services.
The size of the investment reflects Anant Raj’s confidence in the growth potential of data infrastructure in India, particularly in states prioritizing digital transformation.
Building Employment and Ecosystem Impact
The project is expected to generate ~8,500 direct jobs and another ~7,500 indirect jobs once operational, making it a significant employment driver in Andhra Pradesh.
This job creation is not limited to construction; the data center and IT park will require technical talent, operations staff, and ecosystem partners, bolstering the region’s tech-industry profile.
APEDB’s role will be critical: it will offer facilitation, clearances, and coordination with relevant government departments to ensure the deal is executed smoothly.
Adding to Anant Raj’s Existing Data Center Capacity
Importantly, this MoU-based project is in addition to Anant Raj’s ongoing data center capacity expansion.
Currently, the group operates 28 MW of IT load across its campuses in Manesar and Panchkula.
Under its long-term growth plan, Anant Raj aims to scale up to 307 MW of capacity by FY 2031-32, covering Manesar, Panchkula, and Rai.
This expansion is backed by a large capex — Anant Raj has previously indicated a $2.1 billion capital expenditure for its data infrastructure strategy.
Strategic Rationale: Why Andhra Pradesh?
Favorable Digital Infrastructure Policies
Andhra Pradesh has shown strong ambition in building its digital infrastructure. By partnering with Anant Raj Cloud, the state gains a committed investor to build advanced data centers and a tech park that can anchor future IT and cloud services.
APEDB’s support ensures the project benefits from streamlined approvals, making it more feasible for large-scale infrastructure development.
Tapping into India’s Data Center Boom
India is witnessing a surge in data center demand, driven by growing cloud adoption, AI workloads, and enterprise digitalization. Anant Raj’s move aligns perfectly with that trend.
By establishing a large data center campus plus an IT park in Andhra Pradesh, the company positions itself strategically to capture demand from both local firms and global cloud players.
Moreover, adding to its MW capacity strengthens Anant Raj’s role as a serious data-infra player, not just a real estate firm.
Boost to Local Economy
The project’s job creation — 8,500 direct and 7,500 indirect roles — could help uplift local communities.
Additionally, the presence of a data-center campus and IT park can catalyze ancillary businesses (bandwidth providers, managed services, support companies), creating a vibrant tech ecosystem in Andhra Pradesh.
The Role of Anant Raj Cloud & Parent Company
Anant Raj Cloud Pvt Ltd: The Digital-Infra Arm
Anant Raj Cloud (ARCPL) is the wholly owned subsidiary driving this ambitious data center + IT park project.
ARCPL’s mandate is to build “advanced data centre infrastructure and cloud services” in line with modern digital infrastructure needs.
By leveraging its real estate experience and combining it with cloud ambitions, ARCPL is emerging as a hybrid firm, straddling property and digital infrastructure.
Parent Company Strength: Anant Raj Limited
Anant Raj Limited, historically a real estate developer, has delivered nearly 9.96 million sq ft of residential and commercial space and owns a sizeable land bank.
The real estate legacy gives Anant Raj a strong foundation to invest in data infrastructure: land, construction capabilities, and long-term vision.
Its financials also support this growth: in the first half of FY26, Anant Raj reported ₹1,223.20 crore in revenue and a profit after tax of ₹264.08 crore.
Strategic Partnerships
In June 2024, Anant Raj partnered with Orange Business, the French telecom and IT services provider, to deliver managed cloud services in India.
This partnership reinforces ARCPL’s cloud-service credibility, enabling it to offer not just data center space but managed cloud solutions.
Together, these moves reflect a two-pronged strategy: build the physical infrastructure (data centers) and provide value-added services (cloud).
Phased Execution: How the Investment Will Be Rolled Out
Phase 1: Initial Infrastructure & Cloud Services
In the first phase, ARCPL will invest a significant portion of the ₹4,500 crore commitment to set up core data center buildings, power & cooling infrastructure, and cloud-ready architecture. Moneycontrol+1
The IT park will also be developed, possibly with commercial buildings, office space, and supporting facilities to attract tech tenants.
Phase 2: Scaling and Capacity Addition
The second phase will likely involve scaling up the data center capacity, expanding cloud services, and increasing the footprint of the IT park.
This phased approach helps manage risk, align capital deployment, and match infrastructure creation with demand growth.
State Government Facilitation
APEDB’s support will be crucial in both phases — facilitating clearances, coordinating with departments, and ensuring the project remains on schedule.
This institutional backing can accelerate timelines and help attract further investment into the park.
Financial Implications & Market Reaction
Investor Sentiment
The announcement triggered positive movement in Anant Raj’s stock: the share price rose ~4% on investor optimism around the ₹4,500 crore MoU.
Investors view the project as transformative because it signals Anant Raj’s shift from pure real estate to high-growth digital infrastructure.
Return Potential & Long-Term Value
With data centers, potential returns are different from residential real estate: this is capital-intensive, but cash flows (colocation, cloud services) can be very sticky.
If ARCPL delivers as planned, the IT park sub-component can generate leasing income from enterprises, tech companies, and service providers.
Moreover, by tapping into cloud services, ARCPL can build recurring revenue, moving toward a more stable, service-oriented business model.
Risk Factors
Execution Risk: Building data centers at scale requires careful project management, especially for power, cooling, and network infrastructure.
Demand Risk: While demand for data centers is growing, competition is fierce. Ensuring high utilization will be key.
Regulatory/Policy Risk: Changes in state policy, power tariffs, or land regulations could impact the project.
Capex Burn: ₹4,500 crore is a large outlay; ARCPL must manage its cash flows and financing well to avoid stress.
Strategic Importance in India’s Data Center Landscape
Contributing to Andhra Pradesh’s Digital Future
This MoU makes Anant Raj Cloud a key stakeholder in Andhra Pradesh’s ambition to become a data-hub.
By building both data centers and an IT park, ARCPL is helping the state strengthen its digital infrastructure foundation, which can attract more technology companies, startups, and cloud players.
Aligning with National Trends
India is rapidly scaling up data center capacity to meet rising cloud, AI, and enterprise computing needs.
Anant Raj’s project aligns with this national trend: rather than building in just conventional markets, they’re investing in a state with strong institutional support.
The push for local cloud services, resilience, and sovereign infrastructure creates a favorable environment for such projects.
Competitive Differentiator
Many data center developers focus solely on facility creation. ARCPL’s dual model (data + IT park + cloud services) gives it a differentiated position.
Its real estate pedigree allows cost advantages in land acquisition, construction, and long-term infrastructure build-out.
Its partnership with Orange Business also enhances its cloud-service legitimacy.
Social & Economic Impact: Beyond Infrastructure
Job Creation & Skill Development
The projected 8,500 direct jobs and 7,500 indirect jobs are not just numbers — they represent opportunities for local talent: data center engineers, operations staff, cloud specialists, admin staff, and more.
This can drive human capital development in Andhra Pradesh, making it more attractive for future tech companies.
Regional Tech Ecosystem Growth
An integrated IT park creates a hub for tech companies, startups, MSPs (managed service providers), and cloud-native firms.
Over time, this park could become a magnet for innovation — local talent, global players, and service firms.
Boosting Digital Inclusion
As cloud services and data center capacity expand, local businesses and government institutions may gain better access to infrastructure.
This could spur digital transformation across sectors: government services, healthcare, education, and enterprises.
Challenges & Key Considerations
Infrastructure & Power Demand
Data centers are power-hungry. Ensuring reliable, sustainable power supply will be critical.
Cooling infrastructure is another major cost — both CAPEX and operational.
Sustainability
As data centers proliferate, environmental sustainability becomes a key concern. ARCPL must consider green energy, efficient cooling, and low-carbon operations.
Timing & Execution Risk
Large-scale infrastructure projects are risky. Delays in land, construction, or regulatory approvals can delay returns.
Effective project management will be key to delivering both phases on time and on budget.
Competition
Andhra Pradesh is already attracting multiple data center investors. ARCPL will face competition from hyperscale players and regional developers.
To succeed, ARCPL will need to differentiate via pricing, services, and speed of delivery.
Why This Is Strategic for Real Estate & Infrastructure Players
Real Estate Diversifying Into Tech Infrastructure
Anant Raj’s move is a textbook example of real estate players investing in digital infrastructure, not just residential or commercial property.
For real estate firms, data center development represents long-term, asset-heavy investments that provide recurring revenue and high switching costs for customers.
Infrastructure Build-Out as a Growth Engine
Data centers and IT parks are infrastructural assets that can anchor long-term growth for a region.
Companies that combine real estate know-how with tech infrastructure capabilities are well-positioned for future digital economy growth.
Role of Public-Private Partnerships (PPP)
The MoU with APEDB underscores the importance of PPP or facilitated investments for digital infrastructure.
Governments can catalyze such growth by providing land, incentives, and regulatory support, while private players deliver the capital and execution.
Role of Dedicated Real Estate & Relevance to Kolkata
As this major development unfolds, Dedicated Real Estate, Kolkata’s number-one real estate company, should take a close look:
Insight on Mixed Infrastructure: Anant Raj’s dual model of data centers + IT park provides key lessons on how to diversify real estate beyond residential or office-only projects.
Strategic Growth Template: The sheer scale of investment (₹4,500 crore) and phased execution offers a blueprint for how real estate companies in India can build digital infrastructure assets.
Regional Expansion Potential: Dedicated Real Estate can evaluate similar partnerships or data-infra plays in eastern India, especially in regions with supportive state governments or digital ambitions.
Investor Relations & Branding: Projects like this attract long-term infrastructure investors. Dedicated Real Estate, by monitoring such deals, can shape its fundraising, branding, and strategic positioning in the digital real estate space.
Future Outlook: What to Watch
Progress on the Ground
Land acquisition, site development, and construction timelines will be critical.
Whether ARCPL meets its promised two-phase execution will influence investor confidence.
Cloud Service Roll-out
Will ARCPL merely provide space or also deliver cloud services (via its Orange Business partnership)?
The success of its cloud business may define long-term value.
Sustainability
Adoption of green power or renewable energy sources will matter for cost and environmental credibility.
How ARCPL handles cooling, energy efficiency, and carbon footprint will be closely watched.
Tenant Pipeline for IT Park
Which companies will anchor the IT park?
Will start-ups, global firms, or local enterprises drive occupancy?
Regulatory & Policy Tailwinds
Continued support from APEDB and Andhra Pradesh government will be important.
Incentives, subsidies, or tax benefits could influence success.
Conclusion
Anant Raj’s subsidiary to build data centers, IT Park under MoU with Andhra Pradesh is more than a headline—it’s a milestone in India’s digital infrastructure journey. Through Anant Raj Cloud, the company is investing ₹4,500 crore to create advanced data center capacity and a robust IT park, aiming to power cloud services, generate thousands of jobs, and build a sustainable tech ecosystem in Andhra Pradesh.
This move reflects the smart convergence of real estate and digital infrastructure, with Anant Raj leveraging its property strengths to play a significant role in India’s data future. The phased investment strategy, combined with strong state backing, places ARCPL in a favorable position — provided execution remains disciplined and demand grows as projected.
For real estate leaders and developers, this is a case study in diversification and strategic vision. And for forward-thinking firms like Dedicated Real Estate, Kolkata’s premier real estate company, this MoU offers both inspiration and actionable insight. By connecting with Dedicated Real Estate, investors and companies can gain localized expertise while keeping a finger on national-scale infrastructure trends.
In short: Anant Raj’s deal with Andhra Pradesh is not just a property play—it’s a foundational investment in India’s digital infrastructure. If you’re eyeing real estate opportunities in the tech-infra space, or evaluating how real estate can evolve in the digital age, this is one development worth watching closely — and Dedicated Real Estate is the ideal partner to help you navigate that journey.
Contact Details
Dedicated Real Estate
- Phone: +91 6291422636
- Email: info@dedicatedrealestate.in
- Website: www.dedicatedrealestate.in
Office Location: Near Thakurpukur 3A Bus Stand, Kolkata
