Reliance Industries in collaboration, with Brookfield Infrastructure, intends to allocate an amount of 10 billion rupees towards the establishment of data centers within India. This strategic endeavor aims to leverage the increasing need for infrastructure as more individuals join the community. By capitalizing on the projected 40% growth in the data centers market Reliance solidifies its position as a contributor, in shaping India’s digital landscape and advancing its technological progress.
India’s Reliance Industries has made a significant announcement regarding its plans to invest up to 10 billion Indian rupees ($122.24 million) in the construction of data centers within the country. This strategic move comes at an opportune time, as the demand for data center capacity in India is projected to skyrocket with the increasing number of people going online.
Initially, Reliance will channel approximately 3.78 billion rupees into units of Mercury Holdings SG Pte, a joint venture between Canada-based Brookfield Infrastructure and U.S.-based real estate investment trust Digital Realty. The joint venture is presently engaged in building data centers in Chennai and Mumbai.
In addition to this initial investment, Reliance has committed to contributing the remaining 6.22 billion rupees in equity and debt securities of the joint venture’s units as required. As a result of these investments, Reliance will secure a 33.33% stake in each of the Indian units of the joint venture, establishing an equal partnership. The venture will operate under the name Digital Connexion.
The decision to invest in data centers is well-grounded, given the projected growth of India’s data center market. Analysts from investment bank Avendus Capital anticipate a 40% annual growth rate in this sector, attracting a total of $5 billion in investments by 2025.
Reliance’s entry into the Indian data center space is adding to the competition, as Adani Enterprises’ joint venture had already managed to raise $213 million to finance their under-construction data centers.
This move by Reliance Industries not only capitalizes on the burgeoning demand for data centers in India but also strengthens its position in this crucial digital infrastructure sector. With the exponential rise in internet users, reliable and robust data centers will play a pivotal role in shaping India’s digital future.
