Expecting data center capacity to rise in India as more people go online, Mumbai headquartered Reliance Industries announced that it would invest $122 million to build data centers in the country along with Canada-based Brookfield Infrastructure. Currently the two entities are building data centers in Chennai and Mumbai.
Reliance will initially invest $47 million in units of Mercury Holdings SG Pte, which is a joint venture between Brookfield Infrastructure and U.S.-based real estate investment trust Digital Realty.
Reliance has also committed to investing in equity and debt securities of the JV’s units, when needed. It will hold a 33.33% stake in each of the Indian units of the JV and become an equal partner, it said, adding that the venture will be branded as Digital Connexion.
“We are very pleased to expand our existing partnership with Reliance and add their deep expertise in the Indian telecom, tech, and data landscape to the platform. Data centers provide essential services and critical infrastructure to support the digitization that is taking place in every aspect of life in India. Together with Reliance and Digital Realty, we look forward to providing the best of solutions to the digital transformation needs of Indian and global corporations,” said Arpit Agrawal, managing director, head of Infrastructure, India & Middle East, Brookfield.
India’s data center market is expected to grow 40% a year and draw $5 billion in investments by 2025 according to a report from investment bank Avendus Capital.
