Anant Raj Limited, a real estate and infrastructure developer in India, is to spin out its cloud and data center business.

Anant Raj's board approved the demerger of directors on July 21, which will see the company split into two 'focused listed companies,' one of which will solely offer cloud and data center services.

The newly focused business has been named Ashok Cloud Private Limited.

Ashok Cloud is described by the company as a "dedicated digital infrastructure and cloud services company, providing advanced data centers, colocation services, sovereign public cloud offerings, Artificial Intelligence (AI) ready cloud infrastructure, and DC & DR services including cloud migration, data backup solutions and other allied services," and will operate in India.

Amit Sarin, managing director of Anant Raj, said: "Our real estate, infrastructure business and data center and cloud services business have evolved into two distinct platforms, each with its own growth trajectory, operational priorities, and capital needs. As both businesses enter their next phase of expansion, the proposed composite scheme is designed to provide greater strategic focus, management autonomy, and flexibility to pursue long-term value creation.

"By bringing together the data center and cloud services operations currently housed across Anant Raj Ltd and Anant Raj Cloud Pvt Ltd under one roof, we are creating a more focused and scalable platform that will be well-positioned to attract investments, pursue strategic partnerships, and capitalize on emerging opportunities in the digital infrastructure sector."

Anant Raj, meanwhile, will continue to pursue real estate and infrastructure developments focusing on residential townships, luxury housing, commercial developments, and hospitality projects in India.

Anant Raj shareholders will also receive shares in Ashok Cloud following the spin-out.

Anant Raj first entered the data center business in September 2023 with plans to invest Rs 10,000 crore ($1.2 billion) in developing up to 300MW of capacity in the country. Under those plans, the company said it would retrofit three technology buildings - in Manesar, Rai, and Panchkula, all in the state of Haryana - into data centers.

At the start of this year, Anant Raj partnered with Submer to develop data centers in India, with the two signing a Memorandum of Understanding.