Bengaluru-based RMZ and London-headquartered Colt Data Center Services have formed a joint venture to invest up to $1.7 billion (over Rs14,300 crore) into India’s data center market, the two entities said Tuesday.
RMZ will be an equal partner in the JV via its arm, RMZ Digital Infrastructure Partners. The two entities will aim to build data centers with a combined capacity of 250 MW in India.
The joint venture platform will first start investing in the ongoing development of three data center projects located in Navi Mumbai and Ambattur, Chennai, while another site will be added later. The company did not disclose details about the latter.
“In terms of our expansion India remains a strategic country of focus and key in terms of delivering against our aggressive growth strategy,” said Niclas Sanfridsson, the chief executive of Colt DCS.
The London-based firm, along with RMZ, has so far developed the first phase of the data center located in Navi Mumbai, while the second phase is currently under construction. The completion of this project will be able to deliver 134 MW of IT power, with an ability to cater to large enterprises in the financial services sector or cloud companies. The project was launched last year.
Colt DCS also acquired land in Ambattur, Chennai to develop a data center with a capacity to generate IT power of about 72 MW to cloud and AI service providers looking for high performance computing.
Both these assets will be brought under the JV and will likely receive investments from the Bengaluru-based investor for their completion.
“At RMZ, we recognize that digital infrastructure is not just an investment theme but a cornerstone of India’s economic future. Colt DCS’ proven track record in delivering high-quality, scalable solutions aligns perfectly with our vision for India,” said Deepak Chhabria, the CEO of RMZ Infrastructure, the alternative asset segment that houses its data center and healthcare infra verticals.
According to real estate consulting firm JLL’s local unit, India will need an investment to the tune of $5.7 billion up to 2026 to augment the existing data center assets to about 10 million square feet.
“With a large user market, talented workforce, and thriving startup ecosystem, India presents a significant opportunity to emerge as a global data hub, driven by sustainable practices. The country's DC sector expanded from 350 MW in 2019 to 854 MW in 2023, in line with the increasing digital usage trends,” its June report said.
