On Tuesday, global hyperscale data center owner-operator Yondr Group announced that it has formed a $1 billion strategic joint venture with private equity firm Everstone Capital to develop telecommunications infrastructure in India. The venture, operating under the brand name EverYondr, has already acquired land and power for its first project in the Mumbai area, which will deliver 30MW of IT capacity by 2023 and 60MW upon completion.
Headquartered in Singapore, Everstone is a well-known investor in private equity, real estate, green infrastructure, credit and venture capital. Its real estate arm, Indospace, is India’s largest industrial real estate developer, with over 47 million square feet under development nationwide.
The venture with Yondr, which has a significant global track record in developing hyperscale capacity in Europe, the Americas, and Asia-Pacific, is a strategic entrance into India, where the hyperscale market is expected to exceed $4.5 billion in value by 2025. The companies say the investment will be used to develop business across key urban hubs, including Mumbai, Hyderabad, Bangalore, Chennai and Delhi.
The companies note that the number of active internet users in India hit 525 million in 2019, with data consumption per user increasing 37-fold (from 0.26GB to 9.8 GV) between 2014 and 2018, driven by low-cost smartphones and cheap tariffs on data. Data consumption per user is expected to increase further, to 18GB by 2014, trailing only the U.S. and U.K in demand.
“EverYondr’s early acquisition of its first campus in the Mumbai Metropolitan Region reinforces our commitment to the region,” said Yondr Group CEO Dave Newitt. “Unlike other mature hyperscale markets, data centers in India require a proactive approach to development and a streamlined delivery process.
“Bringing together Everstone’s deep knowledge of the Indian market and Yondr’s technical expertise and track record in developing capacity at scale, this joint venture will deliver unrivaled value to our hyperscale clients,” he added.
“”To meet the accelerated pace of cloud adoption, hyperscale companies are increasingly looking to credible partners to help realize their expansion needs. Yondr’s global experience combined with Everstone’s strong execution capabilities in India will provide clients with a credible and consistent choice,” Everstone Group Co-Founder and CEO Sameer Sain said.
The Indian joint venture marks the latest in a series of expansion announcements for Yondr. Last month, the company announced that it has acquired 270 acres of prime real estate in the world’s largest data center market–Northern Virginia–to support the delivery of 500 MW of critical IT capacity.
The new site, purchased in partnership with JK Land Holdings LLC, is located in close proximity to Northern Virginia’s major fiber path and transmission lines, and area that already hosts some of the biggest cloud computing companies in the world, and is set for 13.8 percent market growth this year alone.
“Northern Virginia is one of the many milestones Yondr is working towards as we expand in the United States, Canada and Latin America, as part of our global scaling strategy,” said Pete Jones, Chief Development Officer and Founder at Yondr Group. “With projects currently under development in London, Frankfurt, Berlin, Jakarta, Indonesia and in multiple cities in India, the addition of Northern Virginia reinforces Yondr’s commitment to deliver data centers across five continents by 2024.”