Airtel Raises $1 Billion for Data Center Expansion Amid AI Boom

India’s telecom major Bharti Airtel has raised $1 billion for its data center subsidiary Nxtra Data, backed by global private equity firms including Alpha Wave, Carlyle, and Anchorage Capital.

The funding round values Nxtra Data at approximately $3.1 billion upon completion, according to a company filing. Alpha Wave Global will invest $435 million, Carlyle will contribute $240 million, and Anchorage Capital will add $35 million, with Airtel providing the remaining capital.

The investment will support Nxtra’s expansion across India as demand for digital infrastructure continues to grow.

Nxtra currently operates around 300 megawatts of data center capacity and plans to scale this to 1 gigawatt in the coming years, targeting a market share of about 25%. The company operates 14 large data centers along with more than 120 edge facilities positioned closer to end users.

The funding comes amid a surge in global demand for data centers, driven largely by the rapid adoption of artificial intelligence technologies. Increased computing needs for AI platforms are fueling investments in infrastructure, including power, cooling, and networking systems.

Industry experts highlight India as a key growth market, supported by rising digital adoption and favorable government policies. Earlier this year, the government announced a 20-year tax exemption for hyperscalers using data centers in the country, further boosting investment appeal.

Global technology companies have also increased their focus on India. Major players have collectively committed tens of billions of dollars toward building cloud and AI infrastructure in the country.

Analysts expect India’s data center capacity to grow significantly in the coming years, positioning the country as a major global hub for digital infrastructure.