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NTT Communications to invest Rs 620 crore on new data centre in Mumbai

The Economic Times:  April, 2015

New Delhi: Tokyo-based communications technology bellwether NTT Communications plans to invest $100 million (about Rs 620 crore) in developing a new data centre in Mumbai through its subsidiary Netmagic Solutions, a top executive at Netmagic said.

NTT acquired Netmagic, a managed services provider, in 2012.

NTT that offers voice and video solutions, besides network services, holds 74% stake in Netmagic, which is growing at around 35% annually.

"The new data centre coming up in Q3 2015 will be spread across 3 lakh square feet and host up to 3,000 server racs with 20-28 MW energy capacity," said Sharad Sanghi, managing director and chief executive at Netmagic.

NTT has chosen Mumbai over other locations for the data centre since the city hosts the headquarters of several corporate houses, which the company expects could be a big business driver. This will be NTT's ninth data centre in India.

"We are investing $100 million in the new data centre that will operate through a carrier-neutral business model. Netmagic has got some anchor bookings and hope to get more customers as we move along," Sanghi said.

With a robust managed services portfolio in the country, NTT is eyeing India for its business needs. After enhancing the data centre portfolio, NTT is likely to announce global cloud services by the year end to facilitate multinational companies.

With competition in the cloud market, both domestic and international, growing, global giants such as Microsoft, Amazon, Google and IBM have drawn up aggressive plans to open data centres in India.

Last September, Microsoft announced it would be opening data centres in India by the end of 2015. During his India visit last year, Microsoft chief executive Satya Nadella said cloud business in India itself is going to be a $2-trillion opportunity.

As of now, Singapore and Hong Kong have an upper hand over India due to infrastructure readiness, low-cost bandwidth and power availability.

According to Netmagic, the new data centre will have four different fibre pathways. The company, however, refused to divulge more details and added that the Mumbai data centre customers will include global cloud service providers, and banking and finance companies.

NTT is also planning to expand its data centre base to Hyderabad and Pune as it sees new business demand coming its way amid the government's ambitious 'Digital India' initiative.