Reliance and Brookfield Join Forces for Indian Data Centres
Reliance Industries is partnering with Canada's Brookfield Infrastructure to invest $122.24 million in constructing advanced data centres in India. This collaboration is in response to the booming data centre market in the country.
Digital Connexion Joint Venture
In a joint venture named Digital Connexion, Reliance Industries, Brookfield Infrastructure, and Digital Realty are combining their strengths. This partnership brings together global and Indian infrastructure expertise, a digital ecosystem, and enterprise relationships, as well as data centre know-how.
Development in Chennai and Mumbai
The joint venture is making significant progress in establishing data centres in Chennai and Mumbai:
- Chennai: The flagship greenfield data centre, MAA10, is set to launch in January 2024 with an impressive 20 megawatts (MW) of IT load capacity.
- Mumbai: A recent land acquisition signals plans for a 40 MW data centre.
These centres aim to become crucial connectivity hubs for both Indian enterprises and global corporations entering the Indian market.
Anticipated Market Growth
This strategic move aligns with the expected growth in India's data centre market, driven by:
- Increased accessibility to digital services
- Integration of 5G
- Adoption of IoT and Generative AI
According to a report by Avendus Capital, the Indian data centre market is projected to grow by 40% annually and attract $5 billion in investments by 2025.
The Indian data centre sector is experiencing a surge, with Reliance's entry coinciding with Adani Enterprises' joint venture. The latter secured a substantial $213 million for ongoing data centre construction.
CB Velayuthan, CEO of Digital Connexion, emphasized that this transaction fortifies India’s digital infrastructure by leveraging market insights, energy-efficient data centre design, and a robust digital ecosystem.