Airtel's Data Centre Push Gets Bigger, Nxtra To Buy 85% In Two Firms

Bharti Airtel's data centre arm Nxtra Data has entered into agreements to acquire up to 85% stakes each in Rochak Systems and Rovision Tech Hub, as the telecom company steps up investments in data centre infrastructure to meet rising demand from hyperscalers.

According to an exchange filing by Airtel, Nxtra will acquire the stakes in one or more tranches through cash transactions at an agreed valuation. The company has not disclosed the valuation, citing confidentiality. It said no government or regulatory approvals are required for the proposed acquisitions.

The deals come shortly after Airtel said it plans to significantly expand Nxtra's data centre capacity over the next few years. The company is targeting capacity of 1 gigawatt (GW), up from around 120-130 megawatts currently.

Nxtra Builds Pipeline for 1 GW Capacity

Rochak Systems and Rovision Tech Hub were incorporated in May 2025 and are yet to start commercial operations, according to the filing. Both companies are involved in plans to develop land for data centre construction.

The proposed acquisitions are aimed at supporting Nxtra's data centre expansion as demand from large technology companies and hyperscalers grows. Airtel has said the expansion will be supported by capital expenditure, external funding and land acquisitions, particularly in Mumbai.

Nxtra has already raised $1 billion from external investors to fund its expansion. Airtel has said the company has a clear line of sight to its 1 GW capacity target, supported by rising hyperscaler demand and ongoing efforts to secure land.

Airtel Expands Beyond Core Telecom

The data centre push is part of Airtel's broader investment strategy across connectivity and digital infrastructure. The telecom company is also expanding its fibre network across the top 400 cities as it looks to strengthen its fixed broadband business.

Airtel has said fibre offers better longevity, higher concurrency and lower customer churn. It plans to use fixed wireless access (FWA) more selectively in areas where fibre connectivity is not feasible.

The company has also indicated that capital expenditure will be deployed where required to support competitive growth. While network expansion spending has moderated, Airtel continues to invest in areas such as data centres, connectivity and other digital businesses as it prepares for its next phase of growth.