Big Capital Bet on India’s Digital Backbone

India’s telecom heavyweight Bharti Airtel has raised $1 billion in fresh funding for its data center subsidiary, Nxtra Data, marking one of the most significant investments in the country’s rapidly expanding digital infrastructure space.

The funding round is backed by leading global investors including Alpha Wave Global, Carlyle, and Anchorage Capital Group. Once finalized, the deal is expected to value Nxtra at approximately $3.1 billion, reflecting strong investor confidence in India’s long-term data economy.

This capital injection signals a broader shift, as global funds increasingly target emerging markets like India to capitalize on the next wave of cloud computing and artificial intelligence growth.

Breaking Down the Investment Structure

The $1 billion raise comes from a mix of new and existing investors. Alpha Wave Global will contribute around $435 million, while Carlyle is investing an additional $240 million to deepen its existing partnership with Airtel. Anchorage Capital is adding $35 million, with Airtel itself committing the remaining capital.

This blended funding structure allows Airtel to retain strategic control while leveraging global expertise and capital to scale aggressively.

Scaling from 300MW to 1GW Capacity

Nxtra currently operates a robust network of digital infrastructure assets, including 14 large hyperscale data centers and over 120 edge facilities positioned closer to users. Its total installed capacity stands at roughly 300 megawatts.

The company now plans to more than triple that capacity to 1 gigawatt over the next few years, with an ambitious target of capturing around 25% of India’s data center market.

This expansion is not just about scale but also about proximity and efficiency. By combining large centralized hubs with decentralized edge nodes, Nxtra is positioning itself to serve enterprises, hyperscalers, and government clients with low latency and high reliability.

AI Boom Driving Unprecedented Demand

The timing of this fundraise aligns with a global surge in demand for data centers, fueled largely by artificial intelligence workloads. Training and deploying large language models, cloud platforms, and enterprise AI systems require massive computing power, advanced cooling systems, and stable energy infrastructure.

Globally, more than $61 billion flowed into data center investments in 2025 alone, highlighting the scale of this transformation.

India, in particular, is emerging as a high-growth market. With hundreds of millions of internet users and rapidly increasing AI adoption, demand for local data storage and processing is accelerating. Platforms powered by advanced AI models are seeing widespread usage, further intensifying infrastructure needs.

Tech Giants Pour Billions into India

The surge in investor interest is not limited to private equity. Global technology leaders such as Microsoft, Amazon, and Google have collectively pledged over $50 billion toward India’s cloud and AI ecosystem within a short span.

Google alone has announced plans to build its largest data center hub outside the United States in India, while hyperscalers continue to expand aggressively across key metro regions.

This influx of capital is transforming India into a serious contender among global data hub destinations, competing with established markets like Singapore, the UAE, and Ireland.

Policy Tailwinds Strengthen India’s Position

Government policy is also playing a critical role in accelerating this growth. Earlier this year, India introduced a 20-year tax exemption for hyperscalers using domestic data centers to serve global clients.

Combined with relatively lower infrastructure and operating costs, these incentives are making India an increasingly attractive destination for global cloud providers and AI companies looking to scale efficiently.

Long-Term Growth Trajectory

India’s data center capacity is on a steep upward trajectory. Industry estimates suggest total installed capacity will surpass 2 gigawatts by 2026, doubling from just over 1 gigawatt in 2025.

Looking further ahead, projections indicate capacity could exceed 8 gigawatts by 2030, driven by an estimated $30 billion in cumulative capital expenditure.

At the same time, other players are entering the race. Companies like Yotta Data Services are investing heavily in AI-focused infrastructure, including Nvidia-powered data hubs, and are even exploring public listings to fund future expansion.

Airtel’s Strategic Positioning

For Airtel, this investment is more than just a funding milestone. It represents a strategic pivot toward becoming a core player in India’s digital infrastructure ecosystem.

By scaling Nxtra rapidly and aligning with global investors, Airtel is positioning itself at the center of a structural shift where telecom networks, cloud computing, and AI infrastructure increasingly converge.

As enterprises digitize and AI adoption accelerates, Nxtra’s expanded footprint could become a critical backbone powering India’s next phase of technological growth.