Bharti Airtel’s data centre arm Nxtra Data is reportedly planning to raise US$1 billion through a rights issue and preferential allotment, according to people aware of the matter.

Alpha Wave Global, an investment vehicle of Sheikh Tahnoon bin Zayed Al Nahyan, is expected to invest US$400 million, while Airtel and Carlyle may contribute US$300 million each.

The funds, expected to be primary capital, will be used to scale capacity to around 1 GW.

Nxtra, spun out from Airtel in 2020, sold a 24.04% stake to Carlyle in 2021 and remains majority-owned by Airtel.

The company operates 140 million data centers and about 120 edge sites across 65 cities, with roughly 120-130 MW of capacity and an estimated 12% market share.

Gopal Vittal, Bharti Airtel’s executive vice chairman, said in an earnings call that the company aims for about 25% market share in three to four years and plans to list Nxtra in a few years.

The fundraise comes as analysts and industry reports expect heavy investment by hyperscalers and Indian conglomerates to expand domestic data centre capacity in the coming years.

🔗 Source: The Economic Times