Kotak Data Centre Fund raises $590 million

15 Feb 2023 , 10:30 AM

On Tuesday, a Kotak Mahindra Bank-led arm announced that it raised USD 590 million (roughly Rs 4,885 crore) for investments in data centres in the country.

According to a statement, Kotak Investment Advisors (KIA) plans to raise USD 800 million through the Kotak Data Centre Fund, and this is the first close for the fund.

According to the statement, the fund is the country’s first such dedicated platform to invest in data centres, and it will be domiciled in GIFT City in Gujarat, where entities will receive a slew of benefits.

Rahul Shah, executive director of KIA, stated that India’s current data centre capacity is significantly lower than the rapidly growing demand.

He further highlighted that the industry, being one with high capital expenditures and requiring extensive capacity building, presents a promising opportunity for equity investment. He expressed confidence in the fund’s ability to provide strategic risk capital to support partners in building up their capacities. With this in mind, the fund seeks to back entities by investing in their growth potential and offering financial support to help create and expand their production capabilities.

The Managing Director of KIA, Srini Sriniwasan, suggested that India is on the brink of a data revolution, with the ongoing development of digital infrastructure and the impending rollout of 5G. According to him, this development will pave the way for Indians to have access to a wealth of data even before they achieve financial prosperity.

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