On Monday, March 30, Bharti Airtel disclosed a new capital boost of approximately $1 billion for its data centre subsidiary, Nxtra. This move is part of the telecom giant’s strategy to enhance its digital infrastructure in India, amidst the growing demand for AI-driven and cloud services.
As per an exchange announcement, Airtel confirmed it will gain an investment of US$1 billion from Alpha Wave Global, Carlyle, and Anchorage Capital, through their affiliates, for Nxtra Data Ltd, its data centre division. The company stated it would also invest in the fundraising alongside these partners.
In this agreement, Alpha Wave Global will contribute US$435 million, Carlyle will invest US$240 million, Anchorage Capital US$35 million, with Airtel contributing the remaining amount. The final ownership stakes of the investors will be adjusted post-closing, while Airtel will maintain a controlling interest in Nxtra. The transaction is pending regulatory approval in India.
Nxtra, recognized as the first data center company in India to implement AI at scale for predictive maintenance, energy efficiency, and automated processes, intends to use the funds to speed up its expansion. The aim is to significantly enhance its infrastructure and expand its service offerings for enterprises, hyperscalers, and government agencies.
“At Nxtra, we have created one of India’s most advanced and sustainable data center networks… With approximately 300 MW capacity currently, our goal is to scale to 1 GW in the coming years, targeting around 25% market share,” stated Gopal Vittal, Executive Vice Chairman, Airtel.
He mentioned that strategic alliances with global investors and technology leaders are pivotal to Airtel’s growth strategy, allowing the company to accelerate its expansion and deliver next-generation digital infrastructure on a large scale.
Carlyle also expressed its confidence in the enterprise. Kapil Modi, Partner at Carlyle India Advisors, noted that the company is “well-positioned to benefit from India’s long-term digital infrastructure trends” and emphasized its advances in expanding capabilities and establishing a scalable platform.
Alpha Wave Global, which actively supports AI-focused businesses worldwide, indicated that the investment aligns with its strategy of backing AI-first platforms. “We are thrilled to collaborate with Mr. Sunil Mittal and the Bharti Group… as Nxtra prepares to emerge as India’s leading data center entity,” remarked Rick Gerson, Co-Founder & CIO, Alpha Wave Global.
This investment marks Alpha Wave’s inaugural AI-data centre engagement in India, augmenting its portfolio of global investments in firms like SpaceX, OpenAI, Anthropic, among others, and its recent initiatives in India, including Haldiram’s and Lenskart.
Following the transaction, Nxtra is anticipated to have a valuation of approximately $3.1 billion, reflecting strong investor confidence in India’s rapidly expanding digital infrastructure landscape.
On this date, shares of Bharti Airtel closed down by 3.34% at ₹1,782.40 on the NSE.
