Info-tech

Netmagic to invest ₹700 cr for data centre in Mumbai

Our Bureau Mumbai | Updated on January 24, 2018


Netmagic, in which Japan’s NTT Communications Company (NTT Com) holds a majority stake, is to invest about Rs 700 crore to set up a 3 lakh sq ft data centre in Mumbai. This is the company’s ninth data centre and on its commissioning the company’s total data centre space would double to nearly 6 lakh sq ft.

“This would be probably the largest in terms of pure data centre space in the country. The upfront investment of Rs 700 crore would be used for purchase of land, building and all equipment required for it,” Sunil Gupta, Executive Director and President Netmagic told BusinessLine in an interaction.

The data centre has been designed to be powered by 20 MW, which is extendable up to 30 MW, in case required. The data centre will be commissioned on October 20.

“For the last 15 years, e-commerce has been our sweet spot. We are expecting businesses from enterprise customers, software firms and companies into Internet of Things (IoT),” Gupta added.

The city was selected was for the uninterrupted power supply it has, and more than it, most of the clients are in the city. The data centre is coming up at suburban Mumbai.

Almost 50 per cent of the country’s data centre capacity is in Mumbai, despite the high land costs in the city. Apart from Mumbai, majority of data centre space is available across Bangalore, New Delhi, Chennai and Hyderabad. According to industry estimates, the country has a total of about 45-50 lakh sq feet of third party data centres.

EQUITY INFUSION

Netmagic intends to raise the funds partly through an equity infusion and partly through loans, but there will not be any private funding as the company had done in the past.

Earlier, after a regulatory approvals, NTT Com had increased its stake in Netmagic to up to 81.63 per cent from earlier 74 per cent. In 2012, NTT Com had acquired the majority stake in the data centre operator founded in 1998.

The company also expects its revenues to rise to about Rs 450 crore by the end of this financial year on increase in businesses, a 38 per cent rise from Rs 325 crore posted during the year ended March 31, 2015.

Further, the company also intends to increase its headcount to 1,200 from the present 950 personnel, he added.

Published on July 21, 2015

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