RMZ Corp and Colt Data Centre Services Enter Joint Venture, Announce $1.7 Billion Investment in Data Centres
RMZ Corporation, Bengaluru-based real estate firm, has partnered with Colt Data Centre Services, a prominent British company in the data centre industry, to establish a joint venture targeting India's expanding digital infrastructure needs. This collaboration involves an investment of $1.7 billion to build three advanced data centres across key Indian cities.
Two of the facilities are already under construction, with one in Navi Mumbai offering a projected capacity of 134 megawatts (MW) and the other in Chennai with a capacity of 80 MW. A third data centre is in the planning phase, with Pune and Hyderabad being potential locations. Collectively, these data centres will provide a total capacity of 250 MW over the next three to five years.
The venture seeks to address the growing demand for data storage and processing, driven by advancements in artificial intelligence (AI), cloud computing, and the expanding presence of hyperscalers like Amazon Web Services and Google Cloud.
The joint venture’s $1.7 billion investment will be financed through a combination of equity and debt. According to Quy Nguyen, Chief Sales Officer of Colt Data Centre Services, the collaboration brings together RMZ Corp's expertise in real estate development and Colt's experience in operating data centres. The strategy aims to align with India's increasing need for reliable and scalable digital infrastructure to support emerging technologies.
India’s data centre market is experiencing rapid growth, fueled by the rising adoption of AI, cloud computing, and data localisation regulations. With the market projected to reach $11 billion by 2027 and a compound annual growth rate (CAGR) of 15%, the country is set to become a significant hub for data storage and cloud services in Asia. However, concerns about potential oversupply persist. Nguyen noted that while market risks exist, the demand for data centres will likely outpace these concerns due to the accelerating adoption of AI and hyperscaling operations.
Energy consumption remains a key consideration in the development of data centres. These facilities require substantial electricity, but RMZ Corp's CEO, Deepak Chhabria, emphasized that power availability in most Indian states is sufficient to support such projects. Additionally, the Indian government and state authorities have generally welcomed investments in digital infrastructure, recognizing their role in creating jobs and supporting economic development.
The joint venture also reflects a broader trend of real estate firms investing in data centre infrastructure to capitalize on AI and data localisation opportunities. As businesses increasingly rely on AI and cloud services, robust data storage and processing facilities are becoming essential.
