Airtel's Nxtra Secures $1B from Alpha Wave, Carlyle for AI Data Centers

According to Bharti Airtel's press release, the investment round will see Alpha Wave Global infuse USD 435 million, Carlyle USD 240 million and Anchorage Capital USD 35 million, while Airtel will contribute the remaining amount. Airtel will continue to retain a controlling stake in Nxtra, subject to post-closing adjustments and regulatory approvals.

The transaction values Nxtra at approximately USD 3.1 billion post-closing.

According to the company, the investment is aimed at accelerating Nxtra's expansion across India and strengthening its capabilities in AI-driven data centre operations. Nxtra plans to use the proceeds to scale infrastructure, expand services, and cater to rising demand from enterprises, hyperscalers and government organisations.

Gopal Vittal, Executive Vice Chairman, Airtel, said. Strategic partnerships with global investors and technology leaders are central to our growth roadmap, enabling us to accelerate expansion, harness world-class expertise, and deliver next generation digital infrastructure solutions at scale. With strong market demand, we are committed to stepping up investments and strengthening India's position as a leading data center hub."

Nxtra currently operates 14 core data centres and over 120 edge facilities across India. It offers services including colocation, cloud infrastructure, managed hosting, disaster recovery and edge computing.

Highlighting growth plans, Airtel said Nxtra, which has around 300 MW capacity at present, aims to scale up to 1 GW capacity over the next few years, targeting nearly 25 per cent market share.

The company noted that India's data centre industry is witnessing strong growth driven by digital transformation, cloud adoption and increasing demand from hyperscalers. Industry estimates suggest the market could grow at a compound annual growth rate (CAGR) of about 21 per cent between 2024 and 2030.

Kapil Modi, Partner at Carlyle India Advisors noted, "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."

Rick Gerson, Co-Founder & CIO, Alpha Wave Global, said, "Alpha Wave has a particular focus on identifying and backing AI-first businesses including Anthropic, OpenAI, Cerebras, SpaceX, X.ai, Ramp, Cognition and Long Lake Management. We are excited to partner with Mr. Sunil Mittal and the Bharti Group -- a franchise defined by outstanding leadership and a remarkable track record of executing at scale alongside institutional investors - as Nxtra scales to become India's leading data center business."

Navroz D. Udwadia, Co-Founder, Alpha Wave Global, added, "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 center capacity grow meaningfully to keep up with hyperscaler and LLM demand."

Airtel also said strategic partnerships with global investors will help accelerate Nxtra's expansion and position it as a leading data centre player in India.

Nxtra has been deploying artificial intelligence at scale for predictive maintenance, energy efficiency and automated operations. It is also developing new AI-ready campuses in cities such as Chennai, Mumbai and Kolkata, while expanding its presence in Pune.

The deal underscores increasing investor interest in India's digital infrastructure sector amid rising demand for data storage and AI-driven services.

- ANI