tata data centre

Google and Amazon In race To Buy Tata's Data Centre For About $700 Million

Bunch of global firms including Google and Amazon are in race to buy data centre business of Tata Communications for an expected deal of around $650-700 million.

Beside Google and Amazon, US-based Blackstone Group, Carlyle, KKR, bain Capital, Advent International and Singapore-based Sembcorp Industries are also in talks with the Tata Group.

These companies are willing to buy up to 74% stake in the data centre unit and take control of the business that is spread across 44 locations in India and abroad.

Tata Communciations’ data centre services feature over one million sq. ft. of collocation space in 44 locations around the globe.

Search giant Google and e-Commerce firm Amazon are interested in the deal as they plan to expand the cloud computing infrastructure business in India.

Jefferies LLC has been hired by Tata Communications to advise it on the sale.

If the deal goes through, it will help Tata Communications lower debt burden, which is of Rs 9,178 crore ($1.4 billion), according to a July 2015 investor presentation.

And acquiring large data centre operations like that Tata Communications will give access for companies like Google to penetrate into the Indian data market. Amazon Web Service, or AWS, is one of the leading data centre operators in the world and the company has aggressive plans in India

Notably, Tata Communications Data Centre has facilities in Delhi, Mumbai, Bengaluru, Chennai, Kolkata and Pune and some tier-II, and tier-III towns. The company also provides data centre services in the US, the UK and Singapore. It owns over 1 million sq. ft of data centre and co-location space across 44 global locations and also has eight partner sites in Australia, Malaysia, Germany and the Netherlands, according to the company’s website.

RELATED READING -  ACL Mobile Selling Majority Shares worth ₹535 Cr (SEK 655 Mn) to Sweden's SINCH

In 2013-14, the Tata Communications had a 28% market share of the Indian data market and a 25% market share of the Indian data centre market, according to the company’s annual report.


Comments are closed.

You may also like