Netmagic Lines Up $7 Billion Globally, Bets Big On Indian Market

Data centre provider Netmagic, which was acquired by Japanese technology firm NTT, is bullish on the India market. The firm expected to continue its growth of 30 per cent, as it sees increasing demand driven by policy and business requirements.

“We have delivered 30 per cent growth in the last four years, and anticipate the same next year, too,” said Sharad Sanghi, CEO — Global Data Centers and Cloud Infrastructure (India) of NTT.

Netmagic’s parent firm, NTT, launched its global data centre division that includes India as a separate region, in addition to Americas, Europe Middle East and Australia (EMEA), and Asia Pacific (APAC). The group will put in $7 billion globally over the next four years, and a significant portion of that is likely to come to India, Sanghi said.

“The reason for launching this global data centre division is to have more uniformity across NTT’s footprint in different parts of the world. There is a team of experts that will help with a common offering and standardise business offerings and contracts,” Sanghi said.

Netmagic, which offers colocation services and managed services to customers, is looking at doubling its India footprint in the next three years. It has a data centre going live in June, and the firm expects to further expand its presence to 1.5 million square feet by adding capacity in Bengaluru, Chennai and Navi Mumbai.

The data centre market in India has been growing as the government pushes for data localisation through various policies and proposed laws.

Large players like the Adani group have said it will invest up to Rs 70,000 crore to set up solar powered data parks in Andhra Pradesh. Real estate major Hiranandani Group has also announced a Rs 14,000 crore investment plan, and Reliance Industries has also said it will partner with Microsoft for cloud services.

Industry experts believe all these initiatives will mean more international players storing data in India, and data centre providers are all ramping up capacity to meet the demand.

Sanghi said demand is coming from most businesses moving to the cloud, data localisation and security requirements. “Even in a slight slowdown year, we (data centres) help streamline costs so business is not likely to be affected,” he added. – Business Standard