Carlyle eyes 25 pc stakes in Bharti Airtel’s data center arm By Elets News Network - 02 July 2020


In a major development, Carlyle is set to buy 25% stake in Indian telecom firm Bharti Airtel Ltd’s data center arm for $235 million. The Carlyle is trying to taps into the rapid growth of digital services in India.

The acquisition will give Airtel’s Nxtra Data Ltd an enterprise valuation of about $1.2 billion. Airtel will hold the remaining 75% stake in Nxtra.

Nxtra, which is building multiple large data centres across India, will use the proceeds from the deal to scale up its infrastructure, the companies said.

India is seeing a surge in demand for data centres as more businesses choose cloud computing, and consumer demand for digital services such as smartphone entertainment continues to grow.

Also Read: Airtel, Google join hands to offer digital solutions to SMEs

Cloud and entertainment services represent the next revenue frontier for traditional telecom carriers like Airtel, as voice and data rates in India remain among the cheapest in the world.

Airtel’s local rival Jio, controlled by billionaire Mukesh Ambani, has a cloud tie-up with Microsoft, under which it will build data centers hosted on Microsoft’s Azure cloud.

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