Tulip acquires data centre for 230 cr

Tulip acquires data centre for 230 cr

New Delhi: Enterprise communication service provider Tulip Telecom on Tuesday said its subsidiary has bought the data centre facility in Bangalore from SADA IT Parks Pvt Ltd (SADA)for 230 crore.

Tulip Telecom’s arm Tulip Data Center Services Private Limited which has bought 100% shares of SADA,would further invest 670 crore in the next three years to upgrade the facility the company said.

“The company has made 230 crore as the upfront payment, which will come from Tulip’s balance sheet, while about 270 crore will be generated from the data centre revenues, and about 400 will come from external funding for which we are in discussion with strategic investors," Tulip Telecom CEO Sanjay Jain said.

The data centre, spread over 900,000 sq ft is the world’s third largest of its kind, the other two being in the US.

Jain said the company is looking at serving both domestic and overseas customers through this data centre.

This is Tulip’s fifth data centre, with the company already operating four data centres, two in Mumbai, and one each in Delhi and Bangalore.

Jain said the data centre will have a revenue generation potential of 1000 crore when it reaches its peak capacity in the next three years.

At 11.28, shares of the company were up 2.61% at 169.35 in the Bombay Stock Exchange.