Mumbai, India - January 8, 2026 – Univastu India has signed a memorandum of understanding (MoU) with Sweden-based URBS Systems AB to jointly develop data center projects in India, marking the construction and engineering firm’s formal entry into the fast-growing digital infrastructure sector.
The collaboration is focused on building hyperscale, colocation, edge, and AI- and high-performance-computing-ready data centers, primarily aligned with Maharashtra’s data center policy. Under the MoU, Univastu India will act as the local project developer and EPC partner, overseeing on-ground execution and coordination with state authorities, while URBS Systems will contribute technology, design expertise, and international best practices for data center development.
URBS Systems AB is a Sweden-based technology and systems company with experience in designing energy-efficient and modular digital infrastructure. The partnership is intended to combine URBS’s technical capabilities with Univastu India’s experience in civil construction, infrastructure delivery, and regulatory engagement in India.
The companies said the projects will emphasize sustainability, energy efficiency, and compliance with environmental, social, and governance (ESG) standards, reflecting growing demand from cloud providers and enterprise customers.
While specific capacity targets, investment values, and site locations have not yet been disclosed, the companies indicated that developments would be rolled out in phases based on market demand and approvals. Maharashtra has emerged as India’s largest data center market, supported by favorable policy incentives, access to power and fiber connectivity, and proximity to major enterprise and cloud customers in the Mumbai metropolitan region.
Market reaction to the announcement was positive, with Univastu India’s shares seeing increased trading activity following disclosure of the MoU. Analysts noted that the agreement signals a strategic diversification for the company, which has traditionally focused on civil and EPC projects across public and private infrastructure segments.
India’s data center sector continues to attract strong interest from domestic and international developers as cloud adoption, AI workloads, and data localization requirements accelerate. State-level policies, including capital subsidies, power tariff incentives, and fast-track approvals, have further boosted investment momentum across key hubs such as Mumbai, Chennai, Hyderabad, and Noida.
For Univastu India, the partnership with URBS Systems represents an opportunity to position itself as an integrated developer and builder of data center infrastructure rather than solely an EPC contractor. Industry observers say such partnerships are becoming increasingly common as global technology firms look to pair local execution capabilities with international design and operational expertise.
The companies said further details on project timelines and commercial structures are expected to be announced as feasibility studies and regulatory processes progress.
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