Data center boom sparks an IPO frenzy in India
What's the story
India's data center industry is witnessing a surge in demand, prompting several companies to consider public listings. The country's data center capacity crossed 1GW this year, paving the way for at least three firms to enter the market with valuations exceeding $4 billion. Sify Technologies' data center arm is preparing for a $500 million initial public offering (IPO), while ESDS Software Solutions has already filed its draft red herring prospectus (DRHP).
Upcoming listings
Nxtra and Yotta's listing plans
Bharti Airtel is gearing up to launch an IPO for its data center arm, Nxtra, in the next two to three years. Meanwhile, Yotta Data Services, which rose to fame after being selected for the India AI Mission, is preparing for a listing on NASDAQ. The firm's pro forma enterprise value would be around $4.2 billion with a capacity of 30.4MW according to SEC filings.
Future prospects
Industry growth projections
Analysts expect the data center industry to grow exponentially in the coming years, driven by the AI boom. Property consultant JLL predicts India's data center capacity will grow 77% by 2027, hitting an astonishing 1.8GW. This growth is fueled by rising demand for cloud services, AI-driven applications, and 5G deployments.
Expansion
Nxtra's expansion plans and current valuation
Nxtra has witnessed a surge in demand for its services and plans to invest ₹5,000 crore over the next few years to expand its capacity to 400MW. The expansion will be done on existing campuses using existing power infrastructure and land. According to Tracxn data, Airtel's data center is valued at $1 billion with total funding of $242 million.