Independent data center provider Web Werks has entered into a strategic relationship with Iron Mountain, who will invest $150 million primary equity into Web Werks over the next two years.
After the investment period, Iron Mountain will be the majority investor in the venture. Once completed, this transaction will allow Web Werks to accelerate its expansion across different Indian cities and build capacity to cater to one of the fastest-growing data center markets globally.
The transaction is expected to close within the next 90 days, subject to customary closing conditions, said a release.
Web Werks operates three Tier 3, carrier-neutral data centers in Mumbai, Pune and Delhi NCR with a combined footprint capability of 225,000 square feet. This investment enables Web Werks to expand its operations in its three existing markets immediately and expand into Bengaluru, Hyderabad and Chennai.
Web Werks houses six worldwide Points of Presence (POPs), provides 4 megawatts (MW) of existing capacity, supports 6,000 servers and supports 850 clients. While Iron Mountain Data Center customers get access to three rapidly growing Indian markets, including the 2nd most active peering location in Mumbai.
“Joining forces with the Iron Mountain Data Center team will further solidify Web Werk’s leadership position in the pan-India region and among the broader set of global customers,” said Web Werks CEO Nikhil Rathi.
“Web Werks and Iron Mountain Data Centers are fully committed and aligned to grow and scale to meet the digital transformation and interconnection needs of our customers. The Joint Venture will position Web Werks among the select few data center operators with assets across all major cities and have both HyperScale and dense Interconnection expertise,” he added.
“This investment reflects Iron Mountain’s commitment to invest in high growth, good return global markets to continue to meet our customer’s requirements. The India data center market is projected to grow exponentially in the coming years and Iron Mountain is excited to be an early mover into a market where the demand is high and the supply is low,” said Iron Mountain Data Centers Executive Vice President & General Manager Mark Kidd.
Cyril Amarchand Mangaldas and PwC India acted as advisors to Iron Mountain on this transaction, JLL acted as an introducing partner to both parties.