Kotak Investment Advisors has raised $580 million under its first data centre fund that will be partnering with data centre operators to invest in data centre capacities across the country.

With a total target corpus of $800 million, this is the first closure of the India-dedicated Kotak Data Centre Fund.

“The current data centre capacity in India is significantly lower than the fast growing requirement,” said Rahul Shah, Executive Director, Kotak Investment Advisors. According to him, the data centre business required high capex for significant capacity build-up. This meant good “equity investment opportunity to back partners in creating capacities,” he added.

Kotak Data Centre Fund will be providing the strategic risk capital to its partners at scale.

Data centre growth in India is being driven by the boom in e-commerce, video-on-demand consumption and now the onset of fifth-generation wireless services.

Property consulting firm Savills recently said in a report that in 2023 around 250 MW of data centre capacity will be added in India taking the total to 1.15 GW by the year-end.