Airtel draws $1 billion for data centre arm Nxtra
Targets 1 GW capacity as it diversifies beyond telecom; deal values Nxtra at $3.1 billion
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Prefer us on GoogleLast Updated: Mar 31, 2026, 10:18 IST2 min
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In a Nutshell
- Airtel secures $1 billion for Nxtra, valuing it at $3.1 billion
- Nxtra aims to expand capacity from 300 MW to 1 GW in 3-4 years
- Fresh funds to boost AI-ready data centres and cloud services
Bharti Airtel has secured $1 billion in fresh investment for its data centre unit Nxtra Data, joining a wave of Indian companies investing in infrastructure to support the country's artificial intelligence (AI) boom.
The funding round was backed by Alpha Wave Global, which will invest $435 million, existing investor Carlyle ($240 million) and Anchorage Capital ($35 million), with the rest being infused by Airtel. Nxtra will be valued at $3.1 billion after the capital infusion, with Airtel retaining a controlling stake in it.
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The move reflects a broader diversification within Airtel, which sees data centres, cloud and financial services as central to its next phase of growth. “We are in data centres in a big way,” Airtel’s Executive Vice Chairman Gopal Vittal told Forbes India recently, describing the unit as a key pillar alongside telecom. Nxtra has 300 MW of capacity, which it aims to expand to 1 GW within three to four years, an increase that could lift its market share to about 25 percent, Vittal had said.
“Strategic partnerships with global investors and technology leaders are central to our growth road map, enabling us to accelerate expansion, harness world-class expertise, and deliver next generation digital infrastructure solutions at scale,” Vittal said in a statement on Monday. “With strong market demand, we are committed to stepping up investments and strengthening India’s position as a leading data centre hub.”
Nxtra plans to use the fresh capital to expand facilities across major cities, deepen its offerings in cloud and managed services, and build out infrastructure tailored for AI workloads. The company operates 14 core data centres and more than 120 edge sites nationwide.
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“We have built a strong partnership with Airtel and continue to believe Nxtra is well-positioned to benefit from India’s long-term digital infrastructure tailwinds,” said Kapil Modi, Partner at Carlyle India Advisors. “The company has made significant progress in expanding its capabilities, strengthening customer relationships and building a scalable platform, and we look forward to further working with Airtel and Nxtra’s management team to build the company into one of the largest data centre players in India.”
India’s data centre capacity is projected to grow from 1.5 GW in 2025 to 8-10 GW by 2030, according to a February report from Deloitte. Navroz D Udwadia, co-founder of Alpha Wave Global, said India has an immense AI opportunity ahead of it. “Indians already meaningfully interact with and on Chat GPT, Claude and other AI platforms. As such India is set to see its data centre capacity grow meaningfully to keep up with hyperscaler and LLM demand.”
Demand outpacing supply
India accounts for roughly one-fifth of global data consumption but hosts less than 5 percent of the world’s data centre capacity, according to Deloitte. This has created a supply and demand mismatch.Airtel’s investment comes amid a surge of commitments from two of the largest business groups in February this year. Reliance Industries Ltd has said it will spend $110 billion over seven years to build data centres, while Adani Group has outlined plans to invest $100 billion in green energy-powered, AI-ready data centres by 2035.
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Disclaimer: Network18, the publisher of Forbes India, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
First Published: Mar 31, 2026, 10:24
Subscribe NowHimani is an Associate Editor at Forbes India where she writes about startups shaking things up, legacy firms seeking fresh grounds, and sectors in the middle of big transformations. Always curious ab
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