Reliance To Funnel $122 Million in Brookfield JV For Data Center Projects

CIOTechOutlook Team | Tuesday, 25 July 2023, 04:51 IST

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Reliance Industries of India (RELI.NS) said that it would collaborate with Brookfield Infrastructure of Canada to invest up to 10 billion Indian rupees ($122.24 million) in the construction of data centers there. The announcement comes at a time when it is anticipated that as more people get online, data center capacity in India would increase rapidly.
 
In Mercury Holdings SG Pte, a joint venture (JV) between Brookfield Infrastructure and the American real estate investment trust Digital Realty, Reliance will initially invest roughly 3.78 billion rupees in stock. The JV is presently constructing data centers in Mumbai and Chennai. The Mukesh Ambani-owned business has agreed to put the remaining 6.22 billion rupees, as needed, into the JV's units' debt and equity securities.
 
The joint venture will be known as Digital Connexion, and Reliance will retain a 33.33 percent share in each of the Indian companies and become an equal partner, according to the statement. According to a report from investment firm Avendus Capital, the market for data centers in India is predicted to expand by 40% annually and attract investments worth $5 billion by 2025.
 
With Reliance's arrival, the Indian data center market is also heating up, since Adani Enterprises' (ADEL.NS) JV had already secured $213 million to support data centers that were still under construction.
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