Global colocation provider Digital Realty will partner with Brookfield Infrastructure to establish a 50/50 joint venture focused on the development, ownership and operation of data centers in India. BAM Digital Realty will be the brand name for the joint venture.
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India is a fast-growing market, according to Digital Realty and Brookfield, with data center demand projected to skyrocket as a result of quickly rising data consumption, economic digitalization, the arrival of 5G, and data localization tendencies.
New data centers built in India and operated under the BAM Digital Realty brand will use Digital Realty’s energy-efficient data center design and operation processes, as well as its highly repeatable Pervasive Data Center Architecture (PDxTM) methodology.
“India is a rapidly emerging data center market and offers a bright future, with accelerating adoption of digital business models among a population that recognizes the role of technology for future economic development,” said A. William Stein, Chief Executive Officer (CEO) at Digital Realty. “Our existing partnership with Brookfield, our Ascenty platform across Latin America, has already delivered long-term value to our customers, with over 250 megawatts of IT load capacity in Brazil, Chile and Mexico either fully built out or currently under construction.”
PlatformDIGITAL in India
Brookfield Infrastructure is a major global infrastructure business focused on owning and operating high-quality, long-life assets in the utilities, transportation, midstream, and data sectors in North and South America, Asia Pacific, and Europe. Brookfield Infrastructure’s global data infrastructure portfolio currently includes $23 billion in assets across data transmission, distribution, and storage, including a portfolio of 139,000 operational telecom wireless towers in India, which it intends to expand to 175,000 over the near term.
With 290 facilities in 47 metros across 24 countries on six continents, Digital Realty offers its colocation services worldwide. The company’s global data center platform, PlatformDIGITAL, will serve as BAM Digital Realty’s deployment platform in India as well.
“We look forward to building upon our successful partnership with Brookfield by entering the Indian data center market together,” added Mr. Stein. “We will extend opportunities for digital transformation with the global consistency of PlatformDIGITAL.”
Brookfield Infrastructure has been investing in India for over a decade, with roughly $20 billion in assets under management across infrastructure, renewable energy, real estate, and private equity.
“We are pleased to further expand both our partnership with Digital Realty and our presence in India through this joint venture,” said Arpit Agrawal, Managing Director and Head of India & Middle East, Brookfield Infrastructure. “Through the development of a high-quality, multi-city, India-focused data center platform, we believe BAM Digital Realty is well positioned to play a meaningful role in addressing the large and growing data demand in the country and to offer a differentiated solution to customers.”
Environmentally Friendly Data Centers
BAM Digital Realty plans to buy property in many Indian cities to build data center complexes to meet the demands of global hyperscale service providers, as well as foreign and local businesses. The joint venture plans to design, develop, and run environmentally friendly facilities, building on the companies’ larger commitments to environmentally friendly activities, such as carbon reduction programs.
“Today’s collaboration marks the beginning of a new chapter for Digital Realty’s operations, customers and partners in Asia Pacific. India is on the cusp of rapid digitization of services to support the country’s economic growth,” said Mark Smith, Managing Director, APAC for Digital Realty. “PlatformDIGITAL will offer our new and existing customers a consistent deployment model for extending their operations into India, providing fit-for-purpose infrastructure that will enable them to scale their digital business into one of the fastest-growing data markets in the world.”
The BAM Digital Realty joint venture is scheduled to close in the second half of 2021, subject to usual closing conditions and regulatory clearances.