India continues to attract more investment into data centre expansion with 2021 numbers surpassing now US$5.5 billion as privately owned Yondr Group and private investment firm Everstone Group enter a joint venture (JV) with an initial capitalisation of USD 1 billion to support hyperscale clients in the country.
The investment will be used to fund the development and operation of multi-locational hyperscale data centre business across geographies in India, including but not restricted to the metros of Mumbai Metropolitan Region, Hyderabad, Bangalore, Chennai and National Capital Region (Delhi).
Operating under the brand name EverYondr, the first facility located in the Mumbai Metropolitan Region, for which land and power have already been acquired, will deliver 30MW by 2023 and 60MW of IT capacity when fully developed.
Sameer Sain, co-founder and chief executive officer of Everstone Group, said: “To meet the accelerated pace of cloud adoption, hyperscale companies are increasingly looking to credible partners to help realise their expansion needs. Yondr’s global experience combined with Everstone’s strong execution capabilities in India, will provide clients with a credible and consistent choice.”
Dave Newitt, CEO at Yondr Group, added: “EverYondr’s early acquisition of its first campus in the Mumbai Metropolitan Region reinforces our commitment to the region. Unlike other mature hyperscale markets, data centres in India require a proactive approach to development and a streamlined delivery process.
“Collaborating with a specialised and trusted partner like Everstone will enable us to continue to deliver on that promise in the Indian market that is critically under-served today. Bringing together Everstone’s deep knowledge of the Indian market and Yondr’s technical expertise and track record in developing capacity at scale, this joint venture will deliver unrivalled value to our hyperscale clients.”
In recent years, India has undergone significant digital transformation, with active internet user numbers reaching 525 million in 2019, representing an annual growth of 19.2%. That number has now grown to 669 million in the space of just two years.
Low-cost smartphones and cheap data tariffs have further compounded the shift to digital, with data consumption increasing 37-fold, from 0.26GB to 9.8GB per user between 2014 and 2018.
With a population of more than 1.3 billion and data consumption per user forecast to reach 18GB per user by 2024, India represents a major market opportunity, surpassed only by the US and UK.
EverYondr is just the latest of a series of JVs coming to market to invest billions of Dollars in expanding their footprint across India. Other examples include Digital Realty (NYSE: DLR) and infrastructure asset management company Brookfield Infrastructure L.P. (TSX: BIP.UN; NYSE: BIP), under BAM Digital Realty, NTT and Tokyo Century, and EdgeConneX and Adani Enterprises, under AdaniConneX.