Data center business to boost Anant Raj’s bottom line in coming years, says exec

Developer Anant Raj’s data center business marks the company’s strategic diversification from traditional real estate into digital infrastructure. Leveraging its experience in commercial property development, the company is now building high-capacity data centres to meet India’s growing demand for secure, localised IT infrastructure.

TechCircle interviewed Manoj Kumar Goyal, the chief business officer (CBO), about its data centres and future expansion plans.

Edited excerpts

How and why did a traditional real estate developer like Anant Raj diversify into the data centre sector?

With a legacy spanning decades, Anant Raj has deep roots in India’s construction sector. Established under the Anant Raj brand in 1969, the company played a key role in shaping Delhi’s skyline, from the India Gate precinct to landmark Delhi Development Association (DDA) projects. After serving as one of DDA’s largest contractors through the 1970s and ’80s, we transitioned in the 1990s from a contracting firm to a developer, focusing on commercial and hospitality assets such as IT parks and hotels.

By the early 2000s, the company had built over 3.4 million sq. ft of commercial space. Around 2010, it diversified into residential development with a 220-acre project in Gurugram. When data localisation policies began taking shape in India, we saw an opportunity to repurpose our underutilised IT parks into data centers. Structural assessments confirmed that our buildings met the demanding load and connectivity requirements of such facilities. Leveraging its construction expertise, we began developing modular 3 MW data centers in 2021, marking its evolution from traditional real estate into digital infrastructure.

What is the current data centre capacity that you are operating?

By 2023, we launched the first 3 MW data center campus. Early discussions with global tech giants like Google and AWS highlighted that large players were primarily interested in leasing assets rather than forming new partnerships. This revealed a significant opportunity in the public sector, where demand far exceeded available supply. India had only 850 MW of data center capacity at the time, 85% of which was occupied by major cloud providers.

We signed strategic MoUs and rate contracts with multiple public sector enterprises, initially making them 100% of our customer base, while gradually adding private clients. Our total capacity has since grown from 3 MW to 6 MW, with plans for further expansion.

To accelerate procurement, government entities shifted from CapEx to OpEx models, enabling quicker engagement. Leveraging our infrastructure expertise and partnerships, we developed cloud capabilities, complemented by an experienced leadership team. A 0.5 MW pilot for Infrastructure-as-a-Service (IaaS) offered compute, storage, RAM, load balancing, and security without managing customer databases.

Growing demand led us to the launch of Government Community Cloud (GCC) for public sector clients. Today, we operate 28 MW of IT load across Noida and Manesar, with 24 MW for co-location and 4 MW for our managed cloud platform.

Could you tell us about the kind of clients you serve?

Our holding company, Anant Raj Limited, operates its co-location and cloud businesses through its 100% subsidiary, Anant Raj Cloud Limited, with the cloud platform branded as Ashok Cloud. We maintain selective strategic partnerships, particularly in the public sector, with key PSU partners including RailTel Corporation of India (operating the RailCloud platform), Telecommunications Consultants India Limited (TCIL), CSC (Common Service Centers), and BharatNet Limited, which supports rural broadband infrastructure. These alliances allow us to support government digital infrastructure and e-governance initiatives, often serving sub-clients indirectly through our PSU partners.

In the private sector, our clients include cloud service providers, e-commerce companies, and edtech firms. By October 2026, we plan to achieve 63 MW of co-location capacity, with 14 MW converted to cloud infrastructure, and project a total capacity of 115 MW in the following financial year. Currently, we are focused on mobilizing 30 MW under development, of which about 75% will be dedicated to co-location and 25% to Ashok Cloud. 

Based on our current revenue run rate, this capacity is expected to generate approximately $1 billion in annual revenue once fully operational. Our immediate goal is to execute this plan efficiently, establish a robust, scalable business model, and strategically determine the next location for Ashok Cloud’s expansion.

In 2024, Anant Raj signed a partnership agreement with French teleco Orange. What does this collaboration entail?

To explain our operational model, Orange Business, the arm of Orange, is one of our key service partners. We have a long-term agreement under which Orange helps us design the cloud architecture, acts as the OEM partner, and has procured and set up all the equipment for our cloud infrastructure.

Currently, Orange also supports us in operating the cloud environment. Our in-house team manages Level 1 (L1) and Level 2 (L2) support, while Orange handles Level 3 (L3) and higher-level operations.

The commercial arrangement works on a fee-based model. Orange receives a fixed component related to infrastructure management, along with a variable component based on actual usage, similar to the way telecom operators function. 

Anant Raj Cloud Limited owns the capital assets and bears all investment and P&L responsibility, while Orange Business provides technology expertise and operational support under a service fee arrangement.

Could you provide an overview of the data centre business revenue and how it contributes to the overall group’s business?

March 2025 marked the first full year of operations for our 3 MW data center. By March 2026, we will have 6 MW operational capacity, including 0.5 MW dedicated to the cloud. We expect to generate about ₹200 crore in revenue by FY26, ₹600 crore by FY27, and approximately ₹1,200 crore by FY28.

Currently, the data center business contributes a nominal share to our overall performance. However, by FY26, when we achieve ₹200 crore in revenue, it will become a significant profit driver due to its high EBITDA margins. The central government’s upcoming National Data Center Policy is also expected to provide additional incentives, including a proposed 20-year tax holiday. As a debt-free group, Anant Raj has no interest liabilities, which means our EBITDA effectively translates into net profit.

For FY25, our consolidated profit after tax stood at ₹425 crore. By FY27, around 30% of the PAT is expected to come from the data centre business. While our real estate development business will continue to deliver strong turnover with approximately 25% margins, the data center segment, being a service-based model, will contribute a higher share of profits relative to its turnover. By FY28, we expect both businesses, real estate and data centers, to contribute equally, around 50:50, to the group’s bottom line.