NTT Corporation joins hands with Tokyo Century for India data center businesses

NTT Corporation (NTT) Wednesday said it will improve its investment efficiency as part of its aim to further expand its data center business and join hands with Tokyo Century Corporation (Tokyo Century) in India’s data center businesses.

Elaborating the transaction details, an official statement said NTT Global Data Centers Holding Asia Pte. Ltd. (GDC HC) will divest 75% of its shares in NTT Global Data Centers Holding Asia BOM8 Pte. Ltd (SPV) to Tokyo Century and will jointly own the data center’s assets currently held by NTT Global Data Centers Holding BOM8 Private Limited (BOM8), a 100% subsidiary of the SPV.

It is pertinent to note that GDC HC had established BOM8 to hold assets related to the data center business in Mumbai, India through a newly established SPV in Singapore in 2020.

Now this SPV is developing a 9-story data center with a building area of more than 310,000 sq. ft. and a critical IT load of 24MW.

After this deal, the SPV will become a joint venture of GDC HC and Tokyo Century, with Tokyo Century acquiring 75% of SPV’s outstanding common shares.

Meanwhile, the data center in Mumbai is expected to be completed in February 2022. It will accommodate large-scale cloud service providers known as hyperscalers.

“The data center market in India is expected to grow rapidly due to the government’s promotion of 5G services and the growth of the e-commerce market. Mumbai, India, is an area where many data centers are planned to be developed in the future, and the collaboration between NTT and Tokyo Century in data center would be a significant project in India. NTT and Tokyo Century will continue to cooperate to support the realization of a sustainable society by resolving social issues,” the statement added.