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Airtel secures $1 billion investment for Nxtra to boost AI-led data centre expansion

The funding round, which also includes participation from Airtel, will value Nxtra at about $3.1 billion post-closing. The transaction is subject to regulatory approvals.

Express News Service

NEW DELHI: Bharti Airtel on Monday announced a $1 billion investment in its data centre subsidiary Nxtra Data Limited, led by global investors Alpha Wave Global, Carlyle and Anchorage Capital, to accelerate expansion and tap rising demand for digital infrastructure in India.

The funding round, which also includes participation from Airtel, will value Nxtra at about $3.1 billion post-closing. The transaction is subject to regulatory approvals.

Under the agreement, Alpha Wave Global will invest $435 million, Carlyle $240 million, and Anchorage Capital $35 million, with the remaining capital to be infused by Airtel. While final shareholding will be determined after post-closing adjustments, Airtel will continue to hold a controlling stake in Nxtra.

Nxtra plans to deploy the fresh capital to scale up its data centre network across the country and expand its service offerings for enterprises, hyperscalers and government clients. The company has been focusing on deploying artificial intelligence to enhance predictive maintenance, improve energy efficiency and automate operations.

The investment comes amid strong growth in India’s data centre sector, driven by rapid digital transformation, increasing cloud adoption and rising demand from hyperscale operators. According to industry estimates, the market is expected to grow at a compound annual growth rate of around 21% between 2024 and 2030, reaching nearly 3,400 MW of IT capacity.

Gopal Vittal, executive vice-chairman of Airtel, said Nxtra currently has a capacity of around 300 MW and aims to scale it up to 1 GW over the next few years, targeting roughly 25% market share.

He added that partnerships with global investors and technology players will help accelerate expansion and strengthen India’s position as a key data centre hub.

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