Iron Mountain said it expects to invest $150 million over the next two years, and anticipates being the majority investor in the venture after the investment period. The first phase of the transaction is expected to close within the next 90 days.
Web Werks operates three carrier-neutral data centres in Mumbai, Pune and Delhi NCR. The investment will enable Web Werks to immediately expand its operations in its three existing markets and subsequently expand into Bangalore, Hyderabad and Chennai, the company revealed.
Iron Mountain Data Centers is making this investment to support its existing hyperscale, network, content and enterprise customers looking to expand in the pan-India region.
“This investment reflects Iron Mountain’s commitment to invest in high growth, good return global markets to continue to meet our customers’ requirements,” said Mark Kidd, Executive Vice President & General Manager, Iron Mountain Data Centers.
“The India data centre market is projected to grow rapidly in the coming years and we are excited to be an early mover into a market where the demand is high and the supply is low.
“Web Werks has a highly respected and seasoned leadership team and we are delighted to not only support their continued growth and success, but also to provide our existing Iron Mountain data centre customers access to this growing and thriving market.”
With a combined footprint of 225,000 square feet, Web Werks houses six Points of Presence (POPs), provides 4MW of capacity, supports over 6,000 servers and over 850 clients.
According to a recent report by JLL, India’s Colocation data centre market size is expected to grow from 375MW in H1 2020 to 1,078MW by 2025, registering a CAGR of 21%.
“Joining forces with the Iron Mountain data centre team will further solidify Web Werk’s leadership position in the pan-India region and among the broader set of global customers,” stated Nikhil Rathi, CEO, Web Werks.
“Web Werks and Iron Mountain Data Centers are fully committed and aligned to grow and scale in order to meet the digital transformation and interconnection needs of our customers.
“The Joint Venture is expected to be among the select few data centre operators with assets across all major cities and also have both hyperscale and dense interconnection expertise. We look forward to the collaboration and continued success.”
Deutsche Bank acted as the exclusive financial advisor to Web Werks on the fund raise and Khaitan & Co and EY acted as the exclusive advisors to Web Werks.
