NxtGen eyes data center expansion in India with USD 174 Mn investment
Author : Pankaj Singh | Published Date : 2022-02-21
NxtGen Datacenter and Cloud Technologies is reportedly planning to invest around USD 174 million to establish 236 edge centers and 10 additional data centers in India. The company is currently in the process of securing USD 100 million in funding by the end of the first quarter.
The cloud storage and computing company, which is backed by Iron Mountain, IFC, and Intel, currently operates four data centers in Delhi, Mumbai, Bengaluru, and Ahmedabad. NxtGen is looking to develop additional more in Visakhapatnam, Hyderabad, and Chennai.
Confirming the news, NxtGen’s Managing Director and CEO A S Rajgopal added that the company will invest approximately USD 67 million for the additional 10 data centers. Meanwhile, the planned 236 edge centers could see another USD 107 million investment.
The company is in talks to raise at least USD 100 million in funding to fund these expansion plans, the CEO added. NxtGen is also exploring plans for reducing the cost of mobility, recycling electronic waste, and developing green infrastructure as a part of its ESG efforts.
Rajgopal, when asked about the Indian government’s push for expanding data centers in the country, stated that an infrastructure status could allow the industry players to secure long-term loans instead of the currently available seven-year term loans.
The data center industry in India comprises at least 499 Mw capacity in critical information technology, with seven cities accounting for 490 Mw alone.
Meanwhile, some states have also begun offering special offers to corporations apart from land and electricity tax exemption. This applies only to those who are generating approximately 30% of their power consumption through renewable energy sources.
According to experts keeping track of the business trends, India currently has over 80 third-party data centers and will witness investments worth USD 4.5 billion by the year 2025.
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Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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