Thursday, January 21, 2010

Tata Communications Data Center expansion in Pune

Tata Communications is continuing its datacenter expansion in India with a new datacenter located in Pune. The new facility is Tata's largest facility in the country at 55,000 net square feet. Tata has already invested Rs125 crore (approximately $27.1m) in its new Pune datacenter and intends to build out the facility over the next three years to an expected investment of Rs500 crore (approximately $108.4m) based on market demand. The new facility will offer colocation, managed hosting and storage and a suite of complementary services, including managed security services and CDN services.

Tata Communications has been in expansion mode, with a 3-year $2bn plan announced in 2008 to expand the company's global information technology infrastructure and broadband capacity. Tata Communications' 3-year expansion plans include increasing its global datacenter presence by adding approximately 500,000 gross square feet of datacenter space.

In February 2009, Tata Communications expanded one of its datacenters in Mumbai, India, and leased space from Digital Realty Trust to expand in London. This was followed by opening a new datacenter in Kolkata in July 2009 and now a new datacenter in Pune. Tata plans to essentially double its datacenter footprint in India by the end of 2011.

Tata is also building a $180m datacenter in Singapore, called the Tata Communications Exchange, which is located in the Tai Seng district (near Paya Lebar) in the central-eastern part of Singapore. The 165,000-gross-square-foot facility will provide a range of services, including datacenter colocation, managed hosting and disaster recovery and business continuity for customers. Tata Communications expects to add about 50 jobs to staff the datacenter when the facility is completed in early 2010. Tata is also opening facilities in 2010 in Chennai, India, and Johannesburg, South Africa.

About Pune

Pune is the eighth largest city and India and the second largest city in the state of Maharashtra after Mumbai. Pune is known for its educational facilities, having more than a hundred educational institutes and nine universities. Pune is emerging as a prominent location for IT and manufacturing companies to expand with its well-educated workforce. Major IT firms in Pune include Infosys, Wipro, Satyam Computer Services, TCS, Cognizant and IBM.

T1R take

T1R expects to continue to see more datacenter expansion in India by Tata and other companies as T1R continues to see a multi-tenant datacenter supply/demand imbalance in India, especially in the large cities of Mumbai, Delhi, Kolkata, Bangalore, Chennai, Ahmedabad and Hyderabad.

With its continued datacenter expansion and the growing reach of Tata's global transmission network, T1R thinks Tata is well positioned, especially in India. With India's rapidly developing market economy, India holds the promise of considerable datacenter market growth over the next 5-10 years. However, navigating the government and regulatory landscape in India makes entry by Western datacenter firms challenging. For Western firms looking for a presence in India, Tata Communications would make a good partner to help navigate the complexities of doing business in the region.

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