India is emerging as an important new frontier for data center development. Two U.S.-based data center operators with global ambitions. EdgeConneX and Iron Mountain Data Centers, unveiled separate partnerships to extend their footprint in India.
India is expected to experience robust data center growth in coming years. A JLL report projects that India’s colocation and data center market will to grow from 375MW in early 2020 to 1.08 gigawatts by 2025, an annual growth rate of 21 percent. McKinsey has identified India as the second fastest-growing digital economy and projected that its IT and communications sector will double in size by 2025.
EdgeConneX Partners with Adani
EdgeConneX announced a 50-50 joint venture with Adani Enterprises to develop and operate 1 gigawatt of data center capacity throughout India over the next decade. The AdaniConneX initiative will include both hyperscale data centers and a portfolio of Edge data centers, largely powered by renewable energy.
The venture is a major strategic expansion for EdgeConneX, which is looking to grow its global footprint after being acquired last year by infrastructure fund EQT.
“In Adani, we have the ideal partner in India,” said Randy Brouckman, CEO of EdgeConneX. “They possess the necessary capabilities and unique expertise in India required to build out critical digital infrastructure that can best support our customers across the entire country. We look forward to investing in the digital economy of India and meeting our customers’ needs throughout the region in collaboration with Adani.”
The partnership will leverage Adani’s expertise in energy management, renewable power and real estate development, as well as its experience in building and managing large infrastructure projects throughout India.
“Data centers are a fundamental infrastructure need of a nation,” said Gautam Adani, Chairman of the Adani Group. “India currently has one of world’s largest data subscriber population and to address the need for a reliable infrastructure to support cloud, content, network, IoT, 5G, AI and enterprise requirements. The Adani Group brings to the table a unique combination of green power, real estate expertise, access to undersea cable landing stations, and several nodes across the country that will serve as edge locations.”
The AdaniConneX JV will focus on building a network of hyperscale data centers in India, starting with the Chennai, Navi Mumbai, Noida, Vizag and Hyderabad markets. Development and construction at these sites have already begun.
Iron Mountain Teams With Web Werks
Iron Mountain has also used a joint venture to enter India market by teaming with Web Werks, one of India’s top colocation data center providers. Iron Mountain expects to invest $150 million over the next two years, after which it expects to become the majority investor in the venture.
Web Werks operates three Tier 3, carrier-neutral data centers, in Mumbai, Pune and Delhi NCR. This investment enables Web Werks to immediately expand its operations in its three existing markets, and then expand into Bangalore, Hyderabad and Chennai. Iron Mountain Data Centers is making this investment to support its existing hyperscale, network, content and enterprise customers looking to expand and scale in the rapidly growing pan-India region.
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With a combined footprint of 225,000 square feet, Web Werks houses 6 worldwide Points of Presence (POPs), provides 4 megawatts (MW) of capacity and 6 Internet exchanges, and supports more than 6,000 servers and 850 clients. Web Werks also provides access to a robust, neutral interconnection ecosystem of carrier, content and cloud providers including over 160 Internet Service Providers (ISP) and 6 Internet Exchanges. As market leaders in hyper-connected data centers, Web Werks supports a broad base of well-known brands including: Enterprises, Banking, Financial Services, Insurance (BFSI), and Small and Medium Enterprises (SMEs) who require the ability to efficiently and effectively scale their businesses.
“The India data center market is projected to grow rapidly in the coming years, and we are excited to be an early mover into a market where the demand is high and the supply is low,” said Mark Kidd, Executive Vice President & General Manager, Iron Mountain Data Centers. “Web Werks has a highly respected and seasoned leadership team and we are delighted to not only support their continued growth and success, but also to provide our existing Iron Mountain data center customers access to this growing and thriving market.”
“India provides an important next step in expanding our Asia Pacific footprint,” stated Michael Goh, General Manager Asia Pacific at Iron Mountain Data Centers. “We have seen very strong regional demand from our global customers following the grand opening of our Singapore data center, SIN-1, in 2019.”
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