In one of its first-ever direct acquisitions of land parcels for the development of a large data center in the country, BAM Digital Realty has acquired a 10-acre land parcel in Chennai’s Ambattur locality for over Rs 230 crore, said people with direct knowledge of the development.
\"It’s a direct deal and does not involve any third-party transaction advisor. The joint platform has acquired the land parcel from an automobile forging manufacturing company, \"said one of the people mentioned.
In July, Digital Realty, the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, and Brookfield<\/a> Infrastructure Partners L.P. entered into a 50:50 partnership for this India-specific venture. The joint venture will operate under the brand name BAM Digital Realty.
ET has already reported that both companies are planning to invest over $2 billion in India through this joint platform.
BAM Digital Realty wants to buy land parcels in several Indian cities so that it can build data centre campuses to meet the needs of global hyperscale service providers as well as international and local businesses.
ET’s email query to Brookfield Asset Management remained unanswered until the time of going to press.
In August, after entering into this joint venture with Digital Realty, Brookfield Infrastructure entered into an agreement with K Raheja Corp to acquire the developer’s nearly 30-acre land parcel in Navi Mumbai<\/a>’s Airoli locality for around Rs. 550 crore.
However, it isn't clear if the data centre on this land parcel will be built by the Brookfield-Digital Realty<\/a> joint venture, or if it will be built by Brookfield on its own and later added to this alliance's list of projects.
The joint venture will expand Brookfield Infrastructure’s global data infrastructure portfolio, which currently includes $23 billion in assets across data transmission, distribution, and storage. It also includes a portfolio of 139,000 operational telecom wireless towers in India, which it intends to expand to 175,000 over the near term.
The alliance expects to design, build, and operate sustainable facilities, drawing upon the firms’ broader commitments to sustainable operations, including carbon reduction initiatives.
Brookfield has over a decade of experience investing in India, with around $20 billion of assets under management, including infrastructure, renewable power, real estate, and private equity.
Data centers in India are emerging as the most attractive growth opportunity for global institutional investors and leading developers. Investments are pouring into the data centre market, with multiple new markets opening at the same time, as well as the rapid growth of campus sizes in the world's most well-known cities.
With more than 1.4 billion people, the fifth-largest GDP in the world, and a growing focus on digital service delivery, India is a great place for the world's best service providers and their customers to expand their coverage, capacity, and connectivity options.
India is a high-growth market, with data centre demand expected to significantly increase, driven by rapidly growing data consumption, the digitization of the economy, the onset of 5G and data localization trends.
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