Amazon's Strategic Move in Chennai
Amazon Development Centre India has leased 220,000 square feet of office space from WeWork at Ramanujan IT City (Infinity Tower). This 40-month agreement for over 3,500 workstations marks Chennai's largest single office transaction in the first half of 2025.
Deal Highlights
- Location: Ramanujan IT City, Chennai
- Lease Size: 220,000 sq ft
- Capacity: 3,500+ work units
- Term: 40 months
- Landlord: WeWork
Industry analysts see this as more than just expansion; it shows a calculated endorsement of Chennai’s growing infrastructure and talent pool. “Amazon’s decision shows clear confidence in the city’s ecosystem,” said a senior executive involved in the transaction, speaking anonymously to ET. The lease fits with Amazon’s broader India growth strategy across e-commerce, AWS, and global capability centres.
Chennai’s Ascendancy in India’s Tech Triangle
For a long time, overshadowed by Bengaluru and Hyderabad, Chennai now stands as a credible third pole in India’s tech real estate world. This deal, adding to Amazon’s existing 473,176 sq ft footprint leased between 2017-2019, validates the city’s competitive edge. Rental rates reportedly range between ₹90-106 per sq ft monthly, translating to roughly ₹1.98 crore in monthly outflow for this new lease.
WeWork’s role as landlord shows shifting corporate preferences toward flexible workspace solutions. Leading enterprises now prioritise scalability over long-term commitments and a trend accelerated by hybrid work models. The 40-month term suggests Amazon expects sustained operational needs while retaining flexibility.
Market Implications
Experts predict this deal will boost further institutional investment in Chennai’s commercial infrastructure. With Amazon reinforcing its presence, competing tech firms may speed up their Chennai expansion plans. The city’s cost arbitrage (20-30% lower rents than Bengaluru), combined with engineering talent from institutions like IIT Madras, creates compelling value.
This transaction also underscores a geographic diversification strategy among global enterprises. Chennai offers robust connectivity through its port, airport, and NH48 corridor, making it ideal for export-focused operations central to Amazon’s $80B India export target.