Everstone backs $1b India data center JV

The partnership, operating under the EverYondr brand, already has a data center under development in Mumbai, which will have 60 megawatts of capacity when completed. The plan is to build and operate a string of hyperscale data centers across key geographies such as the Mumbai metropolitan region, Hyderabad, Bangalore, Chennai, and Delhi National Capital Region.

India’s data center market will be worth more than $4.5 billion by 2025, according to a statement, spurred by businesses moving their IT infrastructure to the cloud and increased consumer demand for digital services.

Rising smart phone penetration, as well as relatively cheap data plans, are contributing factors. Data consumption increased 37-fold between 2014 and 2018, reaching 9.8 gigabytes per user. It is expected to hit 18 GB per user by 2024. At the same time, new laws require companies that collect critical information on consumers to store and process it within Indian borders.

Structure Research, an independent consulting firm focused on cloud and data center infrastructure, projects that India’s data center capacity will reach 536.1 MW by 2024, up from 252 MW in 2019. Colocation services revenue is expected to rise from $730 million to $2 billion.

Last year, The Carlyle Group invested $235 million in Nxtra Data, the data center business of local telecom operator Bharti Airtel. The deal valued Nxtra at $1.2 billion. Several PE-backed data center providers are building pan-Asian portfolios, among them Warburg Pincus’ Princeton Digital Group, Bain Capital’s ChinData, and AirTrunk. Of those, only ChinData currently has assets based in India. The company went public in the US last year.

“To meet the accelerated pace of cloud adoption, hyperscale companies are increasingly looking to credible partners to help realize their expansion needs. Yondr’s global experience combined with Everstone’s strong execution capabilities in India, will provide clients with a credible and consistent choice,” said Sameer Sain, co-founder and CEO of Everstone.

The private equity firm has more than $6 billion in assets under management across private equity, real estate, green infrastructure, credit, and venture capital. Its real estate arm, Indospace, is India’s largest industrial real estate developer.

Yondr is a privately owned data center developer and owner-operator with a track record in delivering hyperscale capacity across Asia Pacific, Europe, and the Americas.

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• Topics
• South Asia
• Technology
• Infrastructure
• Expansion
• India
• Everstone Capital
• data center
• Growth capital