NIIF-backed Digital Edge to invest Rs 1,400 cr in Navi Mumbai data centre

Plans to expand capacity to over 300 Mw in 7-8 years; taps SBI for term loan

Digital Edge DC (India) Pvt Ltd, backed by the National Investment and Infrastructure Fund (NIIF), will invest about Rs 1,400 crore in setting up a data centre in Navi Mumbai, with a capacity of 15 Mw in the first phase of the project.

The company plans to add around 40 Mw in the following 12 months and scale it up over 300 Mw in the next seven to eight years over multiple phases.

The project will have a debt-to-equity ratio of 62:38. The term loan component will be about Rs 850 crore for the first phase, and the rest will come from equity. State Bank of India, the country's largest bank, is lender to the project.

ALSO READ: Adani Group to invest Rs 50,000 cr to set up data centre in Maharashtra

ICRA Rating has assigned an “A-” rating to the term loan facilities. Around Rs 165 crore of equity has been infused for the first phase, which is likely to start operations in FY26. The remaining equity is likely to be infused according to the capital expenditure plans.

Government-promoted NIIF will have a 45 per cent holding in the data centre. Among other sponsors are entities supported by Stonepeak, a global alternative investment firm specialising in infrastructure and real estate assets with $61 billion of assets under management (AUM).

The estimated per-megawatt capital cost for the first phase is higher than the benchmark cost due to factors like higher power infrastructure costs and flexibility to cater to clients with artificial intelligence (AI) -based requirements.

The ICRA rating has factored in the strong promoter profile, with a track record of developing and managing large infrastructure and data centre projects.

These strengths are, however, partially offset by the first phase’s exposure to execution risk, as it is currently in nascent stages of construction. The project remains exposed to market risks linked to pre-leasing tie-ups, ICRA said.