Nxtra data

Fast Growing data center player Nxtra Data Limited Achieved Unicorn status: Look through actionable insights

Data center
Data center

Nxtra data company Overview

Nxtra data was founded in 2013 and headquartered in Gurugram, Haryana. The company is the largest network of secure, scalable, and sustainable data centers in India. Nxtra is a subsidiary of Bharti Airtel Limited. The startup company offers data center-related services to leading enterprises, hyperscalers, start-ups, SMEs, and governments.

The company is backed by one of the world’s largest investment firms ‘Carlyle Group’ and Bharati Airtel limited. Carlyle Group has picked up a 24.04% stake for Rs 17,880 million. Bharati Airtel Limited still holds 75.96% of the stake in the company. Nxtra is now a UNICORN start-up in India in terms of valuation. The company authorized share capital was INR 3121 million with a face value of INR 10 per equity share in March 2021.

Key Products & Services

The company limited offers various services within the purview of data center activities in India. Nxtra colocation data center offerings secure, scalable & sustainable hyperscale parks with industry-leading uptime. Within the colocation offering, the company provides Cages and Cabinets, Private Suites, Power Shells, and Dedicated Data centers. A customer can choose any service depending on the size of the business. Nxtra provides end-to-end services including design to build and integration to maintenance to businesses of any size and in any industry. The company also offers a seamless migration service to its clients in a controlled environment. Nxtra has approximately 38 MW of core data centers to serve its clients.

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Data center capacity

The company has over 3 lakhs Route KMs of domestic fiber, over 2,50,000 Route KMs of the global submarine network, and over 200 India and Global PoPs.

The company also have strong data center capacity in India. Refer to company’s data center capabilities in the table below.

Data Center Capabilities

Metro/ RegionRacksCapacity
(MW IT Power)
PhaseType of
data center
Over 120 sites
in 65 Indian cities
26000 racks   50 MWEdge
Pune1000 racks3 MWICore
Bengaluru2000 racks5.5 MWICore
Noida1200 racks4 MWICore
Noida1500 racks6 MWIICore
Manesar1800 racks8.5 MWICore
Chennai800 racks3.5 MWICore
Chennai250 racks1.5 MWIIICore
Bhubaneswar200 racks1.8 MWICore
Mumbai600 racks4 MWICore

The company also offers hyperscale parks across the country to serve low latency issues. The hyperscale parks are located in the major cities in the country. Two hyperscale parks started their operation and six more are upcoming projects of the company. Refer to the table below for more details.

Hyperscale parks capacity

Metro/ RegionRacksCapacity
(MW IT Power)
PhaseSpace
Pune2200 racks21 MWII200000 sq ft
Chennai3000 racks24 MWII
Mumbai – Upcoming7500 racks58 MWI600000 sq ft
Pune -Upcoming12500 racks110 MWIII1000000 sq ft
Kolkata – upcoming1500 racks10 MW150000 sq ft
Hyderabad – upcoming5000 racks40 MW450000 sq ft
Noida – upcoming5000 racks40 MWIII450000 sq ft
Bengaluru – upcoming5000 racks40 MWII450000 sq ft

It is not clear by when these upcoming projects will be operationalized. However, once these projects operationalize, Nxtra’s total hyperscale capacity will be approximately 325 MW in India, one of the largest capacities.

The company serves more than 400 customers for their colocation needs. The customers of the company spread across its hyperscale and edge data centers include global OTT, cloud, large enterprises, the government, and SMEs.

Management team

The company is run by strong leadership. Both Bharati airtel and Carlyle Group are strong in their respective company performance.

Mr. Rajesh Tapadia joined Nxtra as a CEO and successfully became executive director and COO of the company after 3 years in the organization. He has over 27 years of experience in data centers, cloud services, and Technology & Managed Services. Before joining this company, he worked with various companies in different roles.  Among his major assignments, he associated with reliance communication as head of technical consulting and solution design, Chief operating office – technology and managed services at Trimax IT Infrastructure & Services Ltd, and as Sr. EVP, Chief Service Officer & Director on the Board of Netmagic Solutions (An NTT Communications Company).

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Financial snapshot

According to the annual report, total revenue of the company increased from INR 1095.4 crores in FY 2020 to INR 1143.7 crores in FY 2021 a growth of 4.4% during the period. The company also generated quarterly revenue of INR 389 crores in FY 2022 as against INR 374 crores in FY 2021. However, the company witnessed strong growth in PAT from INR 712 million in FY 2020 to INR 1788 million in FY 2021, 2.5 times growth during this period.

Parameters
(INR Million -Year ended March 31)
20202021
Total income1095411437
Total expenses80667009
Profit after tax7121788
Net cash generated from operating activities87652768
Earnings per share (Face value INR 10)78.98187.44

Indian Data center Market

The Indian data center market is USD 4.35 billion in 2021. By 2027, the data center market in India will reach ~USD 10.09 billion which is more than double the size in 2021. In terms of Megawatt, the data center stock is expected to increase from over 550 MW (~8 million sq. ft.) in 2021 to ~700 MW (~11 million sq. ft.) in 2022, rising by about 29% annually. India’s public cloud market is expected to grow from USD 3.6 billion in 2020 to USD 9.5 billion by 2025.

The government of India pushing to localize data centers in India. The country also has the potential to be a regional data center hub owing to its strategic location, availability of submarine cable landing infrastructure, land supply, vast green energy, skilled manpower, and government support along with strong demand for data centers. These factors will offer significant opportunities for data center providers in the country.

There is great potential in other parts of the world, too. The Hong Kong data center market is expected to reach USD 4.12 billion by 2026. The France data center market size should register a CAGR of 8.7 % from 2021 to 2026. The Africa data center market size by investment is predicted to touch USD 5 billion by 2026.

Nxtra data Growth Strategies

Nxtra is planning to invest in all the metros in India. The company is entering the club of the unicorn with a valuation of the brand above $1 billion in the year 2022. Nxtra is committed to investing Rs 5,000 crores by FY25 to further strengthen its network of data centers by adding more capacity in key metros. The upcoming facilities would also play a key role in increasing the total installed capacity by 3X to over 400 MW to meet the surging domestic demand.

Nxtra has been acquiring a stake in renewable power companies to increase its capacity. Nxtra acquired 51,17,000 equity shares, 11.69% stake, in Avaada MHAmravati for Rs 5.11 crore. This will further strengthen its capacity to operate data centers using green energy.

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