Bharti Airtel announced an investment of $1 billion by Alpha Wave Global, Carlyle Group and Anchorage Capital in Nxtra Data Ltd., a subsidiary engaged in the data center business, India's second-largest wireless carrier said Monday.
Alpha Wave Global will invest $435 million, existing investor Carlyle $240 million, Anchorage Capital $35 million, with Airtel providing the remaining capital, according to a company statement.
Airtel said the investment is aimed at spurring AI-data center expansion with Nxtra valued at $3.1 billion post the closure of the transaction. While final shareholdings will be subject to post-closing adjustments, Airtel will maintain a controlling stake in Nxtra.
Executive Vice Chairman of Airtel, Gopal Vittal, said Nxtra possessed one of India's most advanced and sustainable data center networks and the company was now looking to expand its footprint. “With 300 MW capacity today, we aim to scale to 1 GW in the next few years, targeting 25% market share,” he added.
Nxtra intends to deploy proceeds from the fund infusion to scale its infrastructure and broaden its portfolio of services.
The fresh investment into the company comes at a time when India's population and fast-growing economy have made it a magnet for overseas investors and technology companies seeking scale.
India's data center capacity is projected to grow fivefold by 2030 to over 8 gigawatt, according to KPMG. In a report dated Dec. 15 last year, the consulting firm said this expansion is expected to generate more than $30 billion in capital expenditures.
Mukesh Ambani-led Reliance Industries Ltd., through its Digital Connexion venture, signed an $11 billion pact to build data centers at Visakhapatnam in November, while Tata Consultancy Services Ltd. secured $1 billion from TPG Inc. to accelerate its own efforts.
Global players are also stepping up. Amazon.com Inc. plans to invest $12.7 billion on cloud infrastructure in India through 2030, while ChatGPT-creator OpenAI is seeking to set up a 1-gigawatt data center in the region.
Nxtra intends to deploy proceeds from the fund infusion to accelerate its growth plans, the statement said, adding it plans to extensively scale its infrastructure and broaden its portfolio of services, catering to the evolving needs of enterprises, hyperscalers, and government organizations across the country.
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