Kotak Mahindra Bank-led unit mulls $1 bn fund for data center business | News Bharat

A unit of Kotak Mahindra Bank intends to raise up to $1 billion for investment in the data center business.

Kotak Alternate Assets, a unit of Kotak Investment Advisors (KIAL), on Friday appointed Subhamkar Das as chief operating officer of the “Kotak Data Center Fund Platform,” according to an official statement.

Das, who joins the fund from Nxtra Data, will become a senior member of KIAL’s spare asset management team, helping to establish the data center practice at KIAL.

Fundraising plans were not mentioned in the statement, but market sources have speculated that private sector lenders plan to raise $50 billion to $1 billion for the fund, which they plan to inject into the data center business.

Since its inception in 2005, KIAL has raised/managed/advised over $6.8 billion across a variety of asset classes including real estate, infrastructure, private equity, special situations funds and investment advisory. Typically, it raises money from investors to bet on opportunities for higher returns, and it often invests with its own money as well.

Recently, the data center industry has attracted investment from a number of players, including announcements from industrial groups such as Adanis and Hiranandanis.

Srini Sriniwasan, managing director of KIAL, said India was on the brink of a “data explosion” as the industry grew from 650 MW to 2.2 GW in the next five years, involving $7 billion in investment.

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