Airtel boosts data center expansion with new acquisitions
What's the story
Bharti Airtel's data center arm, Nxtra Data, has announced plans to acquire up to an 85% stake each in Rochak Systems and Rovision Tech Hub, newly incorporated entities in India that propose to develop land for the construction of data centers and are yet to commence commercial operations. The strategic move is part of Airtel's larger plan to expand its data center capacity from the current 120-130 megawatts (MW) to a whopping one gigawatt (GW) over the next few years.
Expansion plans
Proposed acquisitions to be executed in cash
Rochak Systems and Rovision Tech Hub are newly incorporated entities that plan to develop land for building data centers.
Nxtra Data will acquire up to an 85% stake in each company, in one or more tranches.
The transactions will be executed in cash at a valuation that Airtel has not disclosed due to confidentiality reasons.
Regulatory status
Acquisitions don't require government or regulatory approvals
The proposed acquisitions don't require any government or regulatory approvals.
This is a major advantage for Nxtra Data as it looks to expand its data center business.
The company has already raised $1 billion from external investors to fund this expansion, with a clear path to its 1GW target driven by hyperscaler demand and ongoing land acquisitions in Mumbai.
Strategic growth
Airtel is also expanding its fiber network across India
Along with the data center expansion, Airtel is also expanding its fiber network across India's top 400 cities.
The company is taking a more selective approach to fixed wireless access (FWA), focusing on areas where fiber connectivity isn't feasible.
These strategic moves are part of Airtel's broader investment plans to support its next phase of growth across data centers, connectivity, and digital businesses.