Private equity firm Everstone Group and global data centre major Yondr Group have set up a $1 billion (Rs 7,445 crore) joint venture to operate data centres in India, the firms said on Tuesday.
The joint venture has acquired land for its first data centre project in the Mumbai Metropolitan Region which will operate as EverYondr, the firms said.
The first facility will deliver 30 megawatt by 2023 and 60 MW of IT capacity when fully developed.
“EverYondr’s early acquisition of its first campus in the Mumbai Metropolitan Region reinforces our commitment to the region. Unlike other mature hyperscale markets, data centres in India require a proactive approach to development and a streamlined delivery process,” Dave Newitt, CEO at Yondr Group, said.
The joint venture, with an initial capitalisation of $1 billion, will support hyperscale clients and service the rapidly growing Indian market, projected to exceed $4.5 billion by 2025, the companies said.
“To meet the accelerated pace of cloud adoption, hyperscale companies are increasingly looking to credible partners to help realise their expansion needs,” Sameer Sain, cofounder and chief executive officer of Everstone Group, said.
The investment will be used to fund the development and operation of multi locational hyperscale data centre business across important geographies in India, including but not restricted to the regions of Mumbai Metropolitan Region, Hyderabad, Bengaluru, Chennai and National Capital Region (Delhi).
Starting with the Mumbai Metropolitan Region, the venture will deliver a portfolio of facilities at hyperscale.
With hyperscale technology, companies can scale demand as required.
Yondr, a privately owned data centre developer with hyperscale capacity, has presence in Europe, Asia, America and the Asia Pacific region.
NTT-Netmagic, Reliance, NextGen HDCC, Net4 are among the biggest owners of data centres. Real estate developer Embassy Group said it was eyeing data centres in 2019.
In the pandemic, the shift to digital has increased demand for data centres, with multiple investors picking up stakes in the facilities. Brookfield set up a joint venture for data centres earlier this month.