Reliance Industries‘ joint venture Digital Connexion said that it will invest $11 billion, about Rs 98,000 crore, by 2030, to build 1 GW capacity data centres in Andhra Pradesh. The company said that the AI-native, purpose-built data centres will be spread over 400 acres in Visakhapatnam.
Digital Connexion is a joint venture between an Indian conglomerate, Reliance Industries, Canadian investment firm Brookfield and US-based data centre company, Digital Realty
Digital Connexion business in India
Digital Connexion has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board to facilitate investment.
“Digital Connexion data centres are purpose-built to support seamless AI workloads empowering hyperscalers and enterprises with future-ready systems, robust substations, redundant power feeds, and rack densities to power the next decade of innovation,” Digital Connexion said in a statement.
The company said that it already has a campus in Chennai, and another is being constructed in Mumbai’s Chandivali area. Both are strategically located for low-latency, carrier-neutral connectivity.
Data centre business surge in India
The latest investment announcement, Digital Connexion, is part of the latest data centre boom in India. Earlier last week, Tech major TCS announced an investment of Rs 18,000 crore in the sector, in a partnership with private equity firm TPG.
Similarly, the Adani Group has also partnered with Google to develop data centres in Andhra Pradesh, investing $15 billion. Additionally, Reliance Industries has joined hands with Meta and Google to develop 1 GW of data centres.
As the investment in data centre infrastructure in India rises, the revenue is also expected to increase in the coming years. According to a Crisil report, data centre companies in India are expected to generate an annual revenue of Rs 20,000 crore by FY28. The report said that the sector is expected to see an annual revenue growth rate of 20-22 per cent.