₹1,200 crore deal: Nvidia leases massive Bengaluru office space amid AI boom
Bengaluru: Nvidia’s subsidiary in India has leased a 7,60,000 sq ft office space in Bengaluru’s Bagmane Capital, as global tech giants expand their AI research and development presence in the country.
Nvidia Graphics Pvt Ltd will pay total rent of approx. ₹1,230 crore over the 10-year lease period. Bagmane Constructions Pvt Ltd. It leased twelve floors in the Memphis South Tower at Bagmane Capital, a technology campus developed by .
Leasing began April 1, according to real estate data analytics platform Propstack. The lease document also includes a 15% increase in rent payment every three years.
Nvidia Graphics was founded in 2004.
“Nvidia’s decision to secure a massive 7.6 lakh sq ft facility in Bangalore is a strong testament to India’s indispensable role in the global AI ecosystem. Coming on the heels of Nvidia crossing the historic $5 trillion market cap milestone last Friday, this long-term commitment translates into a total rental outflow of approx. ₹1,230 crore over the next decade, underlining the scale at which AI giants are expanding their R&D and engineering footprints in India,” said Raja Seetharaman, co-founder of Propstack.
“This transaction in Bagmane Capital not only underscores the continued demand for premium Grade A office space, but also reinforces Bangalore’s position as a prime destination for high-end technology and semiconductor growth,” Seetharaman added.
An Nvidia spokesperson did not respond to Mint’s question. Bagmane’s spokesman declined to comment.
Chip manufacturing giant Nvidia, the world’s most valuable company, is steadily expanding its office space in cities. Nvidia Graphics occupies an area of approximately 3.75 lakh sq ft in Mindspace Business Parks REIT’s Commerzone property in Pune. The US tech firm had earlier also secured 73,000 sq ft of office space at Headquarters 27 in Gurugram, developed by Bharti Realty. Nvidia Graphics also has registered offices in Bengaluru and Mumbai.
India’s office market activity continues to break new ground in the sector despite geopolitics and expected artificial intelligence (AI)-led headwinds, with gross rental reaching 21.5 million sq ft in the January-March quarter this year, real estate consultant JLL India said on Monday.
Bengaluru, the country’s largest office market, led with a 24.8% share in rental volume, followed by Mumbai with 19.5%. In the same period, the technology sector made the biggest contribution to office rental.
Overall, globally based firms continued to capture the lion’s share of the Indian office leasing landscape, with a 57% share in the January-March quarter, mostly in line with previous year averages.
JLL India said current deal pipelines and leasing pace indicate that India’s office market is on track to potentially reach the 100 million sq ft milestone in the next two years, representing a significant achievement for the industry.
