NTT Corporation’s subsidiary NTT Global Data Centers Corporation and Tokyo Century Corporation have expanded business collaboration in India to the Navi Mumbai area.

The parties will jointly own assets related to the data centre business owned by NTT Global Data Centers NAV2 Private Limited (NAV2) through an intermediate holding company (SPV) which will be newly established in Singapore.

NTT said in a statement: “In response to the growing global demand for data centres, NTT is investing in the data centre business to support core infrastructure that is the foundation for NTT’s full-stack global strategy.

“In the data centre business, where demand will continue to grow worldwide, NTT aims to provide high-quality services to global companies by maximising investment efficiency and accelerating data centre business investments.”

Tokyo Century has signed a capital and business alliance with NTT in February 2020 and has since sought to fulfill its role as a corporate partner in promoting the business strategies of the NTT Group by developing financial services that integrate the three spheres of “Finance × Services × Business Expertise.”

In August 2021, Tokyo Century commenced operations of a data centre in Mumbai as its first collaborative project with NTT GDC.

NTT GDC and Tokyo Century have decided to jointly operate NAV2 and construct the first two buildings while visioning 13 data centres at the maximum on this campus.

NAV2 will have as initial capacity nine floors with a total building area of over 310,000 square feet (approximately 29,000 square meters) and Critical IT load of 24 MW.

The data centre, located only 30 minutes from Chatrapati Shivaji International Airport in Mumbai, is expected to be completed in February 2022 and will accommodate large-scale cloud service providers known as hyperscalers.

The India data centre market is expected to grow at a CAGR of over 12% during the period 2020−2026, when it is expected to cross US$8 billion worth of investments due to the increase of data traffic volume with AI and data analytics.

End-user spending on public cloud services in India is also on the rise and forecasted to total US$7.3 billion in 2022, an increase of 29.6% from 2021, according to Gartner, Inc.’s most recent data.