data centers in India

Reliance forms joint venture with Brookfield and Digital Realty to develop data centers in India

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Reliance Industries Limited (RIL) is joining hands with Brookfield Infrastructure and Digital Realty by investing in their Indian Special Purpose Vehicles (SPVs) with the aim of developing data centers in India. As part of this agreement, RIL will acquire a 33.33% stake in each of the Indian SPVs, effectively establishing an equal partnership.

Digital Realty offers cloud and carrier-neutral data center solutions and has an extensive network of over 300 data centers across 27 countries. The company has formed a joint venture with Brookfield Infrastructure, and now, with the inclusion of RIL, they are set to make a mark in India’s data center landscape.

The joint venture will be branded as ‘Digital Connexion: A Brookfield, Jio, and Digital Realty Company.’ With this brand identity, the collaboration aims to position itself as a leader in the Indian data center market, catering to the critical infrastructure needs of enterprises and digital service providers.

Chennai and Mumbai to host the JV’s cutting-edge data centers

The joint venture is actively developing data centers in key locations in Chennai and Mumbai. Its first greenfield data center (MAA10), situated on a vast 100 MW campus in Chennai, will have a capacity of 20 megawatts (MW)and is projected to be completed by the end of 2023.

Additionally, the JV has recently acquired a 2.15-acre land parcel in Mumbai, where it plans to construct a 40 MW data center.

These strategic sites offer advantageous connectivity due to their proximity to critical terrestrial infrastructure and undersea cables. Consequently, these data centers are set to serve as significant hubs for global connectivity, enabling Indian businesses to enhance their reach internationally, and opening the gateway for multinational corporations into the Indian market.

Emerging technologies to drive data center market in India

According to a report by investment bank Avendus Capital, India’s data center market is projected to grow by 40% annually and attract $5 billion in investments by 2025. The country is already one of the world’s largest consumers of mobile data, and with the proliferation of OTT platforms, gaming, and the implementation of 5G technology, the demand for data centers is expected to surge even further.

The growth of data-intensive technologies like the Internet of Things (IoT) and artificial intelligence (AI) is also contributing to the increased demand for data center infrastructure in India. Moreover, the rise of generative AI technologies relies heavily on robust hardware and data center resources, further boosting the need for expanded capacity.

Backed by Digital Realty’s energy-efficient data center design, Brookfield’s expertise in the Indian infrastructure market, and Jio’s extensive digital and connectivity ecosystem, the joint venture is well-positioned to serve the diverse needs of global and local enterprises, SMBs, and startups in India. The data centers developed under this collaboration will meet the cloud and colocation requirements of businesses transitioning their computing resources off-premise.

Reliance’s foray into the data center space comes amidst growing competition, with Adani Enterprises’ JV already securing substantial funding for its under-construction data centers. This highlights the increasing interest and investments in India’s data center industry.

As India witnesses rapid digital transformation and an ever-expanding data ecosystem, the joint venture between RIL, Brookfield, and Digital Realty is poised to play a pivotal role in meeting the nation’s expanding data center needs and establishing India as a significant player in the global data center market.

Read next: BAM Digital Realty expands presence in India with new state-of-the-art data center in Mumbai

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