Warburg Pincus-backed ESR’s India data centre asset sale in final leg

ESR, an Asia Pacific-focused real asset owner and manager backed by private equity firm Warburg Pincus, is close to a deal to sell a data centre in India. ESR put the data centre asset, located in Navi Mumbai, on the block last year. The Rabale MU1 Data Centre is being developed in two phases, with a total capacity of 60 MW, and ESR has engaged with several potential investors to sell the first phase that has come on stream. Asia-focused alternative investment firm PAG has emerged as a frontrunner to clinch the deal for the first phase of 35 MW, which began construction in 2024. The deal size is likely to be around Rs 3-3.50 billion ($31.6-36.8 million). The deal is at the due diligence stage and PAG is likely to move ahead with the transaction. The company had mandated investment banking firm Avendus to scout for buyers for the asset. The development comes a couple of months after ESR unveiled the data centre, announcing a total project cost of Rs 9 billion (about $100 million).