Tulip Telecom to invest Rs 900 crore to expand data centre operations

Tulip Telecom, a telecom company in the enterprise side of the business, is acquiring a data centre in Bengaluru for Rs 230 crore. The company will acquire a 100% stake in SADA IT Parks Pvt Ltd, which is setting up a 9 lakh square feet data centre. Tulip’s existing four data centres cover an area of 1 lakh sq.ft, which will go up to 10 lakh sq. ft., after the acquisition.

SADA is setting up the Tier 4 data center in Bengaluru, at a total investment of Rs 900 crore. Tulip will thus have to invest further in this project, which will come up in three years. It will have a capacity to house 16,000 racks, with 100MW power supply (and backup) and the ability to house about 2,000 employees. The civil structure is ready and Tulip will have to make investments in the core infrastructure of the data centre, including power, electricals and the core equipment needed for a data centre.

After completion, it expects the site to be fully utilised within six months of completion, due to high demand for data centres. A company statement said that “the data center will serve the hosting, co-location, storage and connectivity needs of large enterprises and small and medium businesses in India and other emerging markets, while also serving as a disaster recovery facility…”. Lt. Col. HS Bedi, chairman and managing director, Tulip Telecom said: “It will provide us a platform to roll out numerous services, including Cloud Computing, SAAS and Managed Application Services.” SAAS stands for software as a service.

Read the Tulip press release on the acquisition.

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