Alpha Wave Global is in advanced discussions to acquire a 24.04 percent stake in Nxtra Data, the data centre subsidiary of Bharti Airtel, from global private equity company Carlyle for Rs 5,125 crore (USD 600 million), ETTelecom reported, citing people familiar with the matter. The deal pegs Nxtra’s enterprise value at approximately Rs 20,500 crore (USD 2.4 billion).
Alpha Wave, formerly known as Falcon Edge Capital, has emerged as the sole serious contender for the transaction, after reports suggested that alternative asset manager DigitalBridge Group was also in the race. However, a section of people familiar with the discussions indicates that DigitalBridge is not participating in the process, as per the report. DigitalBridge is an alternative asset manager based in Boca Raton, Florida, that invests in digital assets such as data centres, cell towers and fibre networks.
Bharti Airtel Waives First Right of Refusal
Bharti Airtel, which currently holds a 75.96 percent stake in Nxtra, is believed to have waived its right of first refusal on Carlyle’s stake, according to sources, the report said. Carlyle had acquired the stake in July 2020 for Rs 1,788 crore and has appointed Bank of America to manage the exit process.
If completed, this would mark Alpha Wave’s second deal with Carlyle, following a co-investment in wellness and beauty brand VLCC. It would also further cement Alpha Wave’s investment strategy in India, coming close on the heels of its recent minority acquisition in Haldiram Foods alongside Abu Dhabi’s International Holding Company (IHC).
Nxtra Data by Airtel
Founded by Bharti Airtel, Nxtra Data is one of India’s largest data centre operators, with 12 large core facilities across metro cities such as Mumbai, Noida, and Chennai, and over 120 edge data centres in over 65 cities. The company services more than 500 enterprise customers, including hyperscalers, startups, SMEs, and government entities.
For the financial year that ended March 2024, Nxtra reported a net profit of Rs 231.8 crore on revenues of Rs 1,826.6 crore. Operating cash flows stood at Rs 691 crore, while current liabilities were reported at Rs 868.3 crore. The company is investing Rs 5,000 crore to expand its total capacity from 200 MW to 400 MW, driven by demand for cloud services, AI-led workloads, and 5G deployment.
Nxtra has also integrated artificial intelligence at its Chennai facility to enhance operational efficiency and is scaling up its sustainability efforts. Currently, 41 percent of its energy needs are met through renewable sources, with initiatives underway for zero-discharge centres and hydrogen-ready fuel cells, TelecomTalk previously reported.
According to a CARE Ratings note dated August 1, 2024, Nxtra’s revenues have grown at a compound annual growth rate (CAGR) of 15 percent over the past five years. The rating agency expects this momentum to continue, citing strong margins (average of around 40 percent) and robust demand.
According to the report, India’s data centre industry is witnessing heightened investment activity, backed by the country’s digital transformation, rising internet usage, and the proliferation of AI and IoT applications. The sector is projected to cross the USD 5 billion mark by 2025, with cumulative investment commitments expected to exceed USD 100 billion by 2027, according to CBRE.
Major global and domestic players—including CapitalLand, Adani Enterprises, and Reliance Industries—are ramping up their presence in the space, underlining its growing strategic importance.
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