Reliance Industries to acquire 33% stake in Brookfield-Digital Realty data centre venture

RIL will join a previously announced joint venture between Digital Realty and Brookfield Infrastructure, holding an equal stake in the partnership

Staff Writer
Updated25 Jul 2023, 06:40 AM IST
The JV will be branded as ‘Digital Connexion: A Brookfield, Jio and Digital Realty Company’.
The JV will be branded as ‘Digital Connexion: A Brookfield, Jio and Digital Realty Company’.(REUTERS)

Reliance Industries Ltd (RIL) is joining hands with Brookfield Infrastructure Partners Lp and Digital Realty Trust Inc. in a three-way venture for setting up special purpose vehicles (SPVs) aimed at developing data centres in India. RIL will hold a 33.33% stake in the SPVs, a joint statement by the three partners said.

RIL will join a previously announced joint venture between Digital Realty and Brookfield Infrastructure, holding an equal stake in the partnership, the statement said on Monday. Digital Realty is a cloud and data centre solutions provider.

The joint venture will develop high-quality, highly connected, scalable data centres to meet the critical infrastructure needs of enterprises and digital services companies in India and will be renamed Digital Connexion, the statement said.

The venture is currently developing data centres in Chennai and Mumbai. Its first 20 megawatts (MW) greenfield data centre (MAA10), on a 100MW campus in Chennai, is expected to be completed by the end of this year. The joint venture recently announced the acquisition of 2.15 acres of land in Mumbai to build a 40MW data centre.

Data centre capacity in India is projected to grow significantly over the next few years, driven by the rising demand for data services, the companies said. Indians are already among the largest mobile data consumers globally. This will further increase significantly with increasing access to various digital services such as video streaming and gaming platforms and the ongoing 5G rollout. The adoption of 5G by enterprises will lead to the adoption of data-intensive technologies such as internet of things (IoT) and artificial intelligence (AI). Ongoing innovations in generative AI technology have been enabled by hardware and data centre infrastructure, and the requirement of these is only set to increase exponentially. There is also an increased emphasis on the localization of personal data within the country. “These drivers will significantly increase the data centre and compute capacity requirements of the country,” it said.

“The partnership will help us serve our enterprise and SMB clients with cutting-edge, plug-and-play solutions delivered from the cloud and lead their digital transformation and make them more competitive and efficient,” said Kiran Thomas, the chief executive of Jio Platforms Ltd.

Data centres developed by the joint venture will leverage Digital Realty’s energy-efficient data centre platform design and operating procedures, Brookfield’s knowledge of the Indian infrastructure market, and Jio’s digital and connectivity ecosystem.

“We are very pleased to expand our existing partnership with RIL and add their deep expertise in the Indian telecom, tech, and data landscape to the platform. Data centres provide essential services and critical infrastructure to support the digitalization that is taking place in every aspect of life in India,” said Arpit Agrawal, managing director, head of infrastructure, India and Middle East, Brookfield.

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First Published:25 Jul 2023, 06:40 AM IST
HomeCompaniesNewsReliance Industries to acquire 33% stake in Brookfield-Digital Realty data centre venture

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