Iron Mountain has acquired Web Werks as the latter's co-founders, Nikhil and Nishant Rathi, have exited the data centre company by selling their entire stake to US-based company for Rs 1,400 crore.

While the Rathi brothers will no longer be involved with Web Werks, they retain full ownership of their software development company, NeoSOFT, and plan to scale up their digital services and AI-driven platform, NeoNXT.

Iron Mountain had previously invested USD 150 million in Web Werks in 2021 and an additional USD 170 million in 2023. The 2023 investment came through a joint venture that led to the construction of three new data centres in India within 18 months. “We completed building three new data centres in a span of 18 months and got customers in those data centres in 22 months,” said Nikhil Rathi. As part of the deal, a non-compete clause restricts the Rathi brothers from holding more than a 26 percent stake in any Indian data centre firm until the end of FY27. However, they are free to explore markets like the Middle East, where demand is rapidly growing. 

NeoSOFT currently employs 4,000 people and provides digital engineering and enterprise modernisation services to sectors such as hospitality, e-commerce, healthcare, manufacturing, and telecom. 

Iron Mountain now operates six data centres in India with a total capacity of 14 MW and is developing three new campuses in Mumbai, Chennai, and Noida with a potential capacity of 152 MW to meet the rising digital and AI demands across the country.