Netmagic Solutions plans to double its data centre space

 Netmagic Solutions plans to double its data centre space over the next three years according to managing director and chief executive officer Sharad Sanghi.

“We are planning new data centres in Mumbai, Bengaluru and the national capital region (NCR) in the next three years by investing around Rs 2,000 crore. While Mumbai and Bengaluru will have around three lakh sq ft of space, the NCR one would be a little smaller at two lakh sq ft,” Sanghi said.

The funding for the expansion plan would be mainly through debt, as we get funding for Japanese banks at cheap rates due to NTT Communications good relationship with them, along with internal accruals from the company, Sanghi added. Netmagic Solutions, owned by Japanese telecom major NTT Communications, announced the launch of its new data centre in Mumbai on Wednesday.

With the launch, Netmagic now has nine data centres across India and will have more than six lakh sq.ft of floor space.

May hike stake

According to Sanghi, there is a possibility that NTT Communications may hike stake in Netmagic going forward. “NTT had recently increased its stake to 81 per cent. There is a probability that they might increase their stake going forward,” Sanghi said.

NTT Communications president and chief executive officer Tetsuya Shoji said that the company does not have any problems with current ownership policy. “We have no problems with the current ownership ratio of Netmagic. The company needs to consider long term ownership policy in Netmagic,” Shoji said.

Expansion mode

Data centres will come up in Bengaluru, Mumbai and NCR
Netmagic now operates 9 data centres across India with over 6 lakh sq.ft of floor space.
The funding for the expansion plan would be mainly through debt