Nxtra Eyes $1B Funding to Expand Data Centers

Bharti Airtel’s data center arm, Nxtra, is in the process of securing $1 billion in funding, spearheaded by Alpha Wave Global and Carlyle. This investment aims to significantly scale Nxtra’s data center capacity to 1 GW, addressing the increasing demand for robust digital infrastructure in India.

Alpha Wave Global is set to inject $435 million, while Carlyle will contribute $240 million. Anchorage Capital will also invest $35 million, with Airtel providing the remaining $290 million. The funding round values Nxtra at approximately $3.1 billion post-money, with Airtel retaining a controlling stake.

Nxtra plans to deploy the capital to expand its infrastructure and broaden its service offerings. The company currently operates 14 large core data centers and over 120 edge facilities across India. With an existing facility in Pune, Nxtra is also developing AI-ready campuses in Chennai, Mumbai, and Kolkata.

The fundraise occurs amidst a surge in demand for secure data centers, driven by the increasing use of artificial intelligence, the growing adoption of digital services, and data localization mandates. India’s data center market is projected to reach $11.6 billion by 2032, with installed capacity expected to double year-on-year to 2 GW by the end of 2026 and potentially reach 8 GW by 2030.

Other players are also expanding their data center capabilities in India. Adani Group announced a $100 billion investment in renewable energy-powered data centers by 2035. Reliance plans to build a 3 GW facility in Jamnagar and a 1 GW project in Visakhapatnam for AI-ready data centers, while Amazon plans to invest $12.7 billion in cloud infrastructure in India by 2030.