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Airtel data center arm Nxtra to raise $1b at $3.1b valuation
Bharti Airtel’s data center unit Nxtra Data will raise US$1 billion from Alpha Wave Global, Carlyle Global, Anchorage Capital, and Bharti Airtel, valuing the India-based firm at about US$3.1 billion.
Alpha Wave will lead with US$435 million, Airtel will commit US$290 million, Carlyle will add US$240 million, and Anchorage will invest US$35 million.
Airtel, India’s second-largest mobile carrier by users, said it will keep a controlling stake in Nxtra.
The fundraising follows recent data infrastructure investments announced by Reliance and Adani, as companies bet data centers are India’s most viable entry point into the AI boom despite limited large-scale chip manufacturing.
Nxtra said it will use the proceeds to expand its infrastructure and services.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
Nxtra is profitable and plans a large capacity increase
- Nxtra runs nearly 300 MW of capacity across 14 large core data centers and more than 120 smaller edge facilities 1.
- A US$1 billion capital injection, led by Alpha Wave Global with participation from Bharti Airtel, Carlyle Global, and Anchorage Capital, values Nxtra at about US$3.1 billion and funds expansion 1.
- Nxtra aims to reach 1 GW of capacity in the next few years and targets around 25% market share in India 1.
- For the fiscal year ending March 2024, Nxtra posted a net profit of ₹231.8 crore on revenue of ₹1,826.6 crore 2.
Telecom operators are leaning into digital infrastructure
- Nxtra’s buildout fits a wider shift as telecom operators move beyond connectivity into digital infrastructure.
- Operators can use fiber networks, enterprise customer ties, and control of submarine cable landing stations (where undersea internet cables connect to terrestrial networks) to grow data center revenue with better margins 3.
- This setup supports “sovereign AI” development (building AI capabilities within a country’s borders under local control), which can still scale in countries with limited chip manufacturing.
- The combined network and data center footprint creates a defensible moat (a hard-to-replicate competitive advantage) versus pure-play rivals.
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