Global interconnection and data centre company Equinix Inc. on Tuesday announced the acquisition of GPX Global Systems Inc.’s Indian arm, which has two data centres in Mumbai, in an all-cash deal valued at $161 million.
The transaction highlights the growing interest in the data centre business in India, the second-largest internet market in the world by number of users.
The data centre market in India has grown exponentially since the government’s 2018 directive on data localization, leading to major investments by the likes of Amazon Web Services, Google Cloud and Microsoft Azure, besides expansion by Indian firms such as the Hiranandani Group and Adani Group.
Last month, American investment firm Carlyle had announced plans to buy a 25% stake in the data centre arm of Indian telecom major Bharti Airtel for $235 million, while Hiranandani Group launched a ₹1,000 crore data centre facility in Mumbai. Further, Mukesh Ambani-led Reliance Industries Ltd has partnered with Microsoft Azure to set up data centres across India.
The facilities will add more than 90,000 sq. ft of co-location space to Platform Equinix when fully built, it added. The acquisition is expected to close in Q1 2021, subject to customary closing conditions such as regulatory approval.
Globally, Platform Equinix comprises over 210 data centres across 56 metros and 26 countries, providing data interconnection services for over 9,500 businesses.
Charles Meyers, president and chief executive, Equinix said: “The acquisition of GPX’s business in India means we are able to make a giant leap in terms of growing our ecosystem in India, and gives us a solid foundation for rapid growth and expansion.”
This article was first published on livemint.com.