Anant Raj in Focus as Govt Plans to Ease Tax Rules for Leased Data Centers

Market snapshot: Anant Raj Ltd is in focus following reports that the government plans to ease tax rules for leased data centers run by Indian firms (as stated in the source alert; not independently verified). This development follows the milestone Union Budget 2026 tax incentives, which introduced a tax holiday till 2047 for foreign cloud providers utilizing domestic data centers.

Data Snapshot

• Anant Raj operates a 28 MW operational IT load data center capacity across campuses in Manesar and Panchkula.
• Anant Raj signed a Memorandum of Understanding with the Haryana government to invest ₹20,000 crore in large-scale data center infrastructure across the state.
• The company has set an expansion target of 307 MW IT load capacity by 2031-32, backed by an estimated capital expenditure of $2.1 billion.

What's Changed

• Transition from joint operations to a complete structural split, with the data center business demerged into a standalone listed entity called Ashok Cloud.
• Scaling of development pipeline from 28 MW operational capacity to a planned 307 MW by 2031-32.

Key Takeaways

• The proposed easing of tax rules for leased data centers (as stated in the source alert; not independently verified) could significantly lower the compliance burden for domestic operators.
• The demerger of Anant Raj's data center and cloud operations into Ashok Cloud Pvt Ltd allows for dedicated capital allocation and direct valuation unlocking.
• A massive ₹20,000 crore MoU with the Haryana government represents a significant scaling of the company's tech-infrastructure footprint over and above its base plans.

SAHI Perspective

Anant Raj's strategic pivot into digital infrastructure is highly timely. By converting its pre-owned land parcels and IT parks into data centers, the company enjoys a low construction cost of approximately ₹26 crore per MW compared to the industry average of ₹40-50 crore per MW. The proposed tax adjustments for leased infrastructure, combined with the 21-year tax holiday introduced in Union Budget 2026, create a robust environment for lease commitments from global hyperscalers like AWS, Google Cloud, and Microsoft, raising the occupancy visibility of the upcoming 307 MW pipeline.

Market Implications

A favorable shift in tax rules for leased assets reduces permanent establishment risks for multinational tenants. This is expected to accelerate co-location leasing rates across prime NCR micro-markets, directly benefiting developers with ready-to-move-in or under-construction capacities. Additionally, it positions India as a competitive global cloud hub, attracting substantial foreign capital into the domestic digital infrastructure supply chain.

Trading Signals

Market Bias: Bullish

The structural split toward a pure-play digital infrastructure listing via the Ashok Cloud demerger, combined with positive regulatory tailwinds such as the Union Budget 2026 data center tax holiday till 2047, provides strong long-term support for Anant Raj's tech infrastructure vertical.

Overweight: Data Center Developers, Cloud Infrastructure, Real Estate Technology

Underweight: Traditional Commercial Real Estate

Trigger Factors:

• NCLT and shareholder approval of the Ashok Cloud demerger scheme.
• Operational scaling and commissioning of the next 63 MW phase by December 2026.
• Formal notification of guidelines for 'specified data centers' under the Finance Act, 2026.

Time Horizon: Medium-term (3-12 months)

Industry Context

India's data center market is experiencing an unprecedented structural expansion, with capacity projected to reach 1.8 GW or double by March 2027. Despite generating approximately 20% of global data, India currently holds only about 3% of global storage capacity. The Union Budget 2026-27 has categorized data centers as critical infrastructure, extending a full tax holiday till 2047 on foreign sourced cloud revenues, and proposing a 15% safe harbor margin for related data center entities to settle transfer pricing uncertainties.

Key Risks to Watch

• Grid capacity bottlenecks and delays in securing dedicated high-tension power transmission lines.
• Execution delays in scaling from 28 MW to the targeted 307 MW capacity.
• MeitY approval bottlenecks for the 'specified data center' classification required to claim tax exemptions.

Recent Developments

On July 21, 2026, the Board of Directors of Anant Raj approved a composite scheme of arrangement to demerge its data center and cloud services business into a separate listed entity, Ashok Cloud Pvt Ltd. Under the scheme, shareholders of Anant Raj will receive shares in Ashok Cloud on a proportionate basis. Earlier, on June 1, 2026, the company signed an MoU with the Haryana government to invest ₹20,000 crore in large-scale data center infrastructure across the state.

Closing Insight

Anant Raj's dual engine of a strong NCR real estate portfolio and an aggressively expanding, state-supported digital infrastructure pipeline positions it uniquely to capture India's AI-led compute wave. Investors should closely monitor the regulatory progress of the Ashok Cloud spin-off as a key catalyst for value unlocking.

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