Reliance Industries Limited (RIL) has just announced a significant move into the data center market in India. They've joined forces with Brookfield Infrastructure and Digital Realty to invest in data center projects across the country. According to the agreement, RIL will hold a 33.33% stake in each of the Indian Special Purpose Vehicles (SPVs), making them an equal partner in this venture.
Digital Realty, a renowned global provider of cloud and carrier-neutral data center solutions, is already a major player in the industry. In India, they've teamed up with Brookfield Infrastructure to create top-notch, well-connected data centers that cater to the needs of local enterprises and digital service companies. With RIL's investment, the partnership will now operate under the name 'Digital Connexion: A Brookfield, Jio, and Digital Realty Company.'
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Their focus right now is on developing data centers in prime locations such as Chennai and Mumbai. The first data center, MAA10, is a greenfield project with 20 megawatts (MW) capacity and is expected to be fully operational in Chennai by the end of 2023. Meanwhile, they've also acquired land in Mumbai to build a 40 MW data center. Both facilities will be connected to crucial terrestrial infrastructure and undersea cables, making them major connectivity hubs for Indian businesses and multinational corporations entering the Indian market.
It's no surprise that the demand for data centers in India is on the rise. With the increasing consumption of mobile data, the ongoing rollout of 5G, and the adoption of data-intensive technologies like IoT and AI, there's a pressing need for more data center capacity. Additionally, there's a growing emphasis on localising personal data within the country, which further boosts the requirement for data centers and computing resources.
Through this joint venture, they aim to meet the needs of local and global enterprises, as well as SMBs and startups in India. By providing cloud and colocation solutions, they'll empower these businesses with cutting-edge technology, supporting their digital transformation and enhancing their overall competitiveness and efficiency.
Kiran Thomas, the CEO of Jio Platforms Limited, expressed his enthusiasm for the partnership, highlighting how it will benefit their enterprise and SMB clients by offering state-of-the-art cloud solutions that will drive their digital growth.
