Bharti Airtel arm Nxtra to invest ₹5,000 cr. to triple data-centre capacity

Bharti Airtel’s subsidiary Nxtra will invest ₹5,000 crore to triple its data centre capacity by 2025 to more than 400 MW in the country to cater to the requirements of the fast growing digital economy.

As part of the expansion, Nxtra would set up seven new large data centres in Chennai, Mumbai, Pune, Hyderabad, Bengaluru, Noida and Kolkata, taking the total number of such centres to 17. The company added that it aims to source 50% of the power requirements of these centres through renewable sources.

The telco also unveiled a refreshed brand identity ‘Nxtra by Airtel’ for its data centre business.

“Nxtra by Airtel aims to be at the forefront of this growth and plans to invest ₹5,000 crore by 2025 to further scale up its industry leading network of hyperscale and edge data centres, ” Ajay Chitkara, director and CEO, Airtel Business, told the media.

“The investment will triple Nxtra by Airtel’s installed capacity to over 400 MW to meet the surging demand and consolidate its network leadership.”

Replying to a query, he added that the expansion will be funded through a mix of internal accruals, equity infusion and debt. Last year, private equity firm Carlyle had acquired 25% stake for $235 million in Airtel’s data centre business.

The company noted that with 5G around the corner, a fast-growing digital economy, enterprises transitioning to cloud and local data storage regulations, India is witnessing strong demand for reliable data centre solutions. The Indian data centre industry is expected to more than double its installed capacity from an approximate 450 MW to 1074 MW by 2023, according to a report by JLL.

Mr. Chitkara said the company has about 400 Indian and global customers and its revenue has tripled since 2017-18. “In the last three years, our revenue has tripled for data centre business. We expect it to continue to grow as it is a huge opportunity. We are the only integrated player which can offer connectivity and data centres,” he said.

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