Airtel's Nxtra to acquire up to 85% in two firms to expand data centre business
ADVERTISEMENT
Bharti Airtel's data centre arm, Nxtra Data, has entered into agreements to acquire up to 85% stake each in Rochak Systems and Rovision Tech Hub as part of its strategy to expand its data centre business, according to an exchange filing on late Thursday.
The proposed acquisitions come days after Airtel told analysts that it plans to increase Nxtra's data centre capacity to 1 gigawatt (GW) from the current 120-130 megawatts over the next few years.
The company said that the expansion would be supported by upcoming capital expenditure, external funding and land acquisitions, particularly in Mumbai.
According to regulatory filings, Nxtra will acquire up to 85% stake in each company in one or more tranches. The transactions will be completed in cash at a mutually agreed valuation, which Airtel has not disclosed citing confidentiality.
Rochak Systems, incorporated on May 19, 2025, and Rovision Tech Hub, incorporated on May 15, 2025, are newly incorporated entities in India. Both companies propose to develop land for the construction of data centres and are yet to commence commercial operations.
Airtel said the proposed acquisitions are intended to strengthen Nxtra's data centre business. The company also clarified that no government or regulatory approvals are required for completing the transactions.
The stake purchases are part of Airtel's broader plans to scale up Nxtra's data centre capacity in line with its previously announced expansion roadmap.
"Many of the investments over the next couple of years will continue to rapidly scale up our data centre portfolio as we are building out from the 120-130 megawatts all the way to a gigawatt. There is going to be a period of rapid capital expenditure spend," Vice Chairman Gopal Vittal told anaylusts earlier.
Airtel's path to building 1 GW of data centre capacity begins with Mumbai. Vittal said the city remains the company's primary focus as it hosts a significant share of hyperscaler and domestic enterprise workloads. To support its expansion plans, Airtel is acquiring strategic land parcels in and around Mumbai while leveraging its long-term cloud partnership with Google and the capacity already under development to meet its 1 GW target.
"Within the hyperscaler segment, a very large part of the workloads run off Mumbai, and therefore, one of the key considerations for getting to 1 GW is the right land parcels in Mumbai, which we’re in the process of finalising," Vittal had said.