Global data center storage and colocation company Iron Mountain will form a data center joint venture with Web Werks, one of India’s leading colocation data center providers. Iron Mountain expects to invest $150 million over the next two years. It anticipates being the majority investor in the venture after the investment period.
Iron Mountain Data Centers, the colocation business unit of Iron Mountain, 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.
Web Werks operates three Tier 3, carrier-neutral colocation data centers, in Mumbai, Pune and Delhi NCR. This investment enables Web Werks to immediately expand its operations in its three existing markets and subsequently expand into Bangalore, Hyderabad and Chennai.
With a combined footprint of 225,000 square feet, Web Werks houses 6 worldwide data center Points-of-Presence (POPs), provides 4 megawatts (MW) of capacity, supports 6,000+ servers and supports 850+ clients. Web Werks also provides access to its neutral interconnection ecosystem of carrier, content and cloud providers including over 160 Internet Service Providers (ISPs) and 6 Internet Exchanges (IXs). Web Werks supports a broad base of well-known brands including enterprises and SMEs, as well as companies within banking, financial Services, and Insurance (BFSI).
“This investment reflects Iron Mountain’s commitment to invest in high growth, good return global markets to continue to meet our customers’ requirements,” said Mark Kidd, Executive Vice President & General Manager, Iron Mountain Data Centers. “The India data center market is projected to grow rapidly in the coming years. We are excited to be an early mover into a market where the demand is high and the supply is low. 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 colocation customers access to this growing and thriving market.”
Deutsche Bank acted as the exclusive financial advisor to Web Werks on the fund raise. Khaitan & Co and EY acted as the exclusive advisors to Web Werks respectively.
Cyril Amarchand Mangaldas and PWC India acted as advisors to Iron Mountain on this transaction. JLL acted as an introducing partner to both parties.
India’s Colocation Data Center Market Size
According to a recent report by JLL, India’s colocation data center market size is expected to grow from 375MW in H1 2020 to 1,078MW by 2025, registering a CAGR of 21%. According to the December 2020, Global Data Centre Colocation & Interconnection report by Structure Research (SR), the Asia Pacific region will account for half of the global colocation market by 2025 driven by large emerging markets like India. The SR report also recognizes Mumbai and Pune as key opportunity markets in India with combined projected MW of built-out critical IT load capacity growth to reach over 470MW by 2025.
“India provides an important next step in expanding our Asia Pacific footprint,” said 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.”
“Joining forces with the Iron Mountain Data Center team will further solidify Web Werk’s leadership position in the pan-India region and among the broader set of global customers,” said Nikhil Rathi, Chief Executive Officer (CEO) at Web Werks. “Web Werks and Iron Mountain Data Centers are fully committed and aligned to grow and scale in order to meet the digital transformation and interconnection needs of our customers. The Joint Venture is expected to be among the select few data center operators with assets across all major cities and also have both Hyperscale and dense interconnection expertise. We look forward to the collaboration and continued success.”