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RIL has joined forces with Brookfield Infrastructure and Digital Realty for their data center business in India. Digital Realty is a major global provider of cloud and carrier-neutral data centers, while Brookfield Infrastructure is a significant player in infrastructure investments worldwide.
The joint venture aims to develop state-of-the-art data centers in various locations throughout India. RIL has announced its investment in Indian Special Purpose Vehicles (SPVs) set up by Brookfield Infrastructure and Digital Realty for this purpose. RIL will hold a 33.33 percent stake in each SPV, becoming an equal partner.
According to a press release RIL, the joint venture is branded as ‘Digital Connexion: A Brookfield, Jio, and Digital Realty Company.’ Currently, data centers are being developed in prime areas of Chennai and Mumbai. The first data center (MAA10) with a 20-megawatt capacity, located in Chennai, is anticipated to be completed by the end of 2023. Additionally, the JV has acquired 2.15 acres of land in Mumbai for the construction of a 40-megawatt data center. These data centers will be crucial hubs for global connectivity, facilitating Indian companies’ access to international markets and enabling multinational companies to establish a presence in India.
India’s increasing demand for data centers is driven by its position as one of the largest consumers of mobile data globally and the ongoing 5G rollout. The rise of digital services like OTT platforms and gaming, as well as the adoption of 5G and data-intensive technologies like IoT and AI by enterprises, will further amplify the need for data center capacity.
The JV aims to cater to the cloud and colocation requirements of global and local enterprises, SMBs, and startups in India as they migrate their computing resources to the cloud and off-premise locations.
Digital Realty’s energy-efficient data center design and operating procedures, combined with Brookfield’s extensive knowledge of the Indian infrastructure market, and Jio’s vast digital and connectivity ecosystem, will support the development of high-quality data centers in India.
The partnership is expected to enhance India’s digital transformation and contribute to the country’s goal of becoming a $1 trillion digital economy by 2025. The transaction is subject to regulatory approvals and is expected to be completed within approximately three months.
