RMZ to invest USD 35bn to build digital infra, housing, commercial projects, exploring IPO

Synopsis

Realty firm RMZ on Monday said it plans to invest USD 35 billion over the next five years to develop data centres, AI factories, commercial assets and housing projects and is also considering launching an Initial Public Offering (IPO).

Realty firm RMZ on Monday said it plans to invest USD 35 billion over the next five years to develop data centres, AI factories, commercial assets and housing projects and is also considering launching an Initial Public Offering (IPO).

Out of the total planned investment, the company said the 50 per cent would be into digital infrastructure projects.

In a statement, Bengaluru-based RMZ said, it "plans to invest over $35 billion in India over the next five years across co-location data centres, artificial intelligence factories, mixed-use commercial office developments, and a return to residential projects."

The investments will be funded through a mix of debt and equity.

"The group is also considering an initial public offering to secure permanent, long-term capital," RMZ said.

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The company said it is bullish on data centres, following the Union Budget 2026-27 proposing a 21-year tax holiday for foreign cloud providers using India-based data centres. It said around USD 70 billion already committed nationally to the data centre sector with a further USD 90 billion in announced projects.

"Roughly half of the USD 35 billion will go into digital infrastructure. RMZ, in partnership with Colt, a subsidiary of Devonshire, the family office of Fidelity's Abigail Johnson, is building co-location data centres across Navi Mumbai, Chennai, Visakhapatnam, Hyderabad, and Bangalore," the company said.

Near-term committed capacity additions include 750 megawatts in Navi Mumbai and 485 to 500 megawatts in Vizag, following a formal agreement with the Andhra Pradesh government.

The group's five-year target is to reach 1.5 gigawatts of co-location capacity in India, at a capital outlay of USD 12 to USD 15 billion.

RMZ has constituted a separate entity to develop AI factory capabilities on top of its existing co-location infrastructure, offering GPU as a service to cloud providers and AI companies establishing operations in India.

The balance of the capital will go into commercial real estate, led by Global Capability Centres.

By 2030, India is projected to host over 2,400 GCCs employing more than 2.8 million professionals.

RMZ said it is targeting about 20 per cent of annual commercial office absorption nationally.

The group is also deploying capital into retail formats built around experiential programming, luxury business and leisure hospitality, industrial and logistics assets, and Signature Offices, its institutionalised office-for-ownership product that allows retail and institutional investors to directly own grade-A commercial office assets.

"The way we look at it, we need permanency of capital. And the only way you can get permanent capital is if you tap into the public markets. So all these years, we have built partnerships along with some great sovereign pension funds, strategic investors, and that has gotten us to where we are today," said Manoj Menda, Co-Founder and Chairman, Supervisory Board, RMZ.

RMZ group is one of the leading real estate developers in the country.

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