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What is the story about?
Shares of Bharti Airtel Ltd. are trading with gains of about 2% on Wednesday, April 1, after the company announced a $1 billion investment in its data centre arm, Nxtra Data, alongside global investors.
The investment will be led by Alpha Wave Global, which will infuse $435 million, followed by Carlyle at $240 million and Anchorage Capital with $35 million. The remaining capital will be invested by Airtel itself.
Post the transaction, Airtel will continue to retain a controlling stake in Nxtra.
The deal values Nxtra at $3.1 billion and is aimed at accelerating its expansion across India. The company plans to scale up its capacity from around 300MW currently to 1GW over the next few years, targeting a 25% market share.
ALSO READ | IREDA Update: Loan book growth slows further to 22%; stock in focus
Nxtra operates a pan-India network comprising 14 large core data centres and over 120 edge facilities, offering services such as co-location, cloud infrastructure, managed hosting, and disaster recovery.
The fresh capital will be used to expand infrastructure, including AI-ready data centre campuses, as demand from enterprises, hyperscalers, and government organisations continues to rise.
Nxtra has also partnered with Google to build a gigawatt-scale AI data centre campus.
Financially, Nxtra reported FY25 revenue of ₹2,080 crore and EBITDA of ₹790 crore, with a profit of ₹220 crore.
Brokerage firm CLSA has maintained an 'Outperform' rating on Bharti Airtel, with a price target of ₹2,310 per share.
The broader industry outlook also remains strong. According to a report by Savills India, India's data centre capacity is expected to grow at a CAGR of around 21% between 2024 and 2030, reaching nearly 3,400MW.
The investment will be led by Alpha Wave Global, which will infuse $435 million, followed by Carlyle at $240 million and Anchorage Capital with $35 million. The remaining capital will be invested by Airtel itself.
Post the transaction, Airtel will continue to retain a controlling stake in Nxtra.
The deal values Nxtra at $3.1 billion and is aimed at accelerating its expansion across India. The company plans to scale up its capacity from around 300MW currently to 1GW over the next few years, targeting a 25% market share.
ALSO READ | IREDA Update: Loan book growth slows further to 22%; stock in focus
Nxtra operates a pan-India network comprising 14 large core data centres and over 120 edge facilities, offering services such as co-location, cloud infrastructure, managed hosting, and disaster recovery.
The fresh capital will be used to expand infrastructure, including AI-ready data centre campuses, as demand from enterprises, hyperscalers, and government organisations continues to rise.
Nxtra has also partnered with Google to build a gigawatt-scale AI data centre campus.
Financially, Nxtra reported FY25 revenue of ₹2,080 crore and EBITDA of ₹790 crore, with a profit of ₹220 crore.
Brokerage firm CLSA has maintained an 'Outperform' rating on Bharti Airtel, with a price target of ₹2,310 per share.
The broader industry outlook also remains strong. According to a report by Savills India, India's data centre capacity is expected to grow at a CAGR of around 21% between 2024 and 2030, reaching nearly 3,400MW.
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