Airtel’s Nxtra raises Rs 9,400 crore to expand AI-ready data centre infrastructure

Bharti Airtel’s data centre subsidiary Nxtra has raised $1 billion (around Rs 9,400 crore) in a strategic funding round led by Alpha Wave Global, alongside existing investor Carlyle and Anchorage Capital.

In a statement, Bharti Airtel said Alpha Wave would invest $435 million, Carlyle $240 million and Anchorage Capital $35m, with Airtel contributing the remaining $290 million.

The deal values Nxtra at approximately $3.1 billion post-investment and remains subject to regulatory approvals in India. Airtel will retain a controlling stake in the company following the transaction.

The capital will be used to scale infrastructure, expand service offerings and strengthen AI-driven operations, as demand for digital infrastructure continues to rise.

“At Nxtra, we have built one of India’s most advanced and sustainable data center networks, designed to meet the evolving needs of enterprises, hyperscalers, and government,” said Gopal Vittal. “With nearly 300 MW capacity today, we aim to scale to 1 GW in the next few years, targeting around 25% market share.”

Nxtra currently operates 14 core data centres and more than 120 edge facilities across India, serving enterprises, startups and government clients. Its services include co-location, cloud infrastructure and edge computing. The company is also expanding AI-ready campuses in cities including Chennai, Mumbai and Kolkata, in addition to its existing facility in Pune.

The investment comes amid surging demand for data centres driven by rapid adoption of AI, growing cloud usage and data localisation requirements.

"Airtel’s $1 billion investment in Nxtra highlights its focus on expanding digital infrastructure, including hyperscale data centers, AI-ready campuses, and edge computing," said MOFSL Research. "The move signals telecoms’ growing push into the enterprise and cloud services market."

India’s data centre market is expected to expand significantly in the coming years, supported by government incentives and rising digital consumption.

In the 2026 budget, finance minister Nirmala Sitharaman proposed tax incentives for foreign cloud providers and favourable cost structures for data centre operators.

Competition in the sector is intensifying. Adani Group has announced plans to invest $100 billion in renewable-powered data centres by 2035, while Reliance Industries is developing large-scale AI-ready facilities. Global technology firms such as Amazon are also expanding cloud infrastructure investments in the country.

India’s data centre capacity is expected to reach about 1.7 GW by end-2026, rising to 8 GW by 2030. The sector’s market is projected to hit $11.6 billion by 2032, driven by policy incentives and rising digital adoption.