Web Werks in JV to build ₹7,500-cr data centres

Web Werks, a data center builder and operator based in India, has partnered with US-based enterprise Iron Mountain Data Centers to invest ₹7,500 crore in establishing data centers in India's major cities by 2026. The company currently has three data centers located in Mumbai, Pune, and the National Capital Region, with plans to expand its capacity from 40MW to 200MW. They plan to extend their services to cities such as Mumbai, Bengaluru, Chennai, Hyderabad, and Noida. According to the co-founder and CEO, Nikhil Rathi, Web Werks has a considerable-sized funnel of investors, including a large bank and specific investors. Iron Mountain may also contribute to the investment as they have access to hyper scalers and other resources.

Web Werks has already acquired 11 land parcels in major cities, investing $100 million (₹825 crore). The projects will be completed by 2026, with most of the investment funded through lease rental discounting. In fact, in 2020, the company achieved the distinction of launching two data centers in Delhi and Pune within the same week, making it the first company globally to do so. The company has a long-term plan and aims to become a significant player in the data center industry.

In 2021, Web Werks entered a strategic partnership with US-based enterprise information management services firm, Iron Mountain. Under the agreement, Iron Mountain will invest $150 million as equity in Web Werks over two years, accelerating the company's expansion plan. According to a report from commercial real estate services firm Colliers, India's data center stock is expected to double to about 20 million sq ft by 2025 from the current 10.3 million sq ft, making data centers in India an attractive growth opportunity for global institutional investors and leading developers.