Reliance Forms JV with Canada's Brookfield Infrastructure for Indian Data Centres

Digital Connexion, formerly BAM Digital Realty, has completed a three-way joint venture between Brookfield Infrastructure, Reliance Industries, and Digital Realty to establish advanced data centres in India, bolstering the nation's digital infrastructure.

Reliance Industries plans to invest up to $122.24 million alongside Canada's Brookfield Infrastructure in constructing data centres in India.

Initially announced on July 24, 2023, this joint venture now sees each entity owning an equal one-third (33.33%) stake in the venture. Completing this transaction heralds the rebranding of the joint venture as Digital Connexion, aiming to build on the strong foundations laid by BAM Digital Realty.

This collaboration capitalises on the strengths of each partner: Brookfield Infrastructure's understanding of global and Indian infrastructure, Jio’s digital ecosystem and enterprise relationships, and Digital Realty's expertise in data centres. Their combined knowledge and experience position Digital Connexion strategically.

The joint venture progresses the development of data centres in Chennai and Mumbai. MAA10, the flagship greenfield data centre in Chennai, set to launch in January 2024, boasts 20 megawatts (MW) of IT load capacity. The recent land acquisition in Mumbai also signals plans for a 40 MW data centre. These centres aim to serve as connectivity hubs for Indian enterprises and global corporations entering the Indian market.

This move aligns with the significant growth anticipated in India's data centre market, driven by increased digital services accessibility, 5G integration, and the adoption of IoT and Generative AI. The Indian data centre market is projected to expand by 40% annually and attract $5 billion in investments by 2025, according to a report by Avendus Capital. The joint venture aims to address these trends, catering to local and global enterprises, startups, and cloud computing needs.

The Indian data centre sector is also intensifying with Reliance's recent entry, coinciding with Adani Enterprises' joint venture, which secured $213 million to support ongoing data centre construction activities. 

The industry's expansion aligns with projections of a 40% annual growth and an influx of $5 billion in investments by 2025, as per Avendus Capital's report. Reliance and Adani Enterprises' entries further amplify this sector's growth, reflected in a recent $213 million funding secured for ongoing data centre construction.

CB Velayuthan, CEO of Digital Connexion, remarked, "This transaction fortifies India's digital infrastructure, leveraging market insights, energy-efficient data centre design, and a robust digital ecosystem."