Tulip acquires Data Centre facility in Bangalore from SADA for Rs230 crore

Tulip Telecom Ltd, an enterprise data service provider, today acquired the Data Centre facility in Bangalore from SADA IT Parks Pvt Ltd (SADA) for Rs230 crore.

The Bangalore facility will be owned and operated through its wholly owned subsidiary Tulip Data Centre Private Ltd.

"Spread across an area of 9 lakh square feet, the tier 4 data centre will be set up in Bangalore with a total investment of Rs900 crore over a period of three years," said Sanjay Jain, CEO of Tulip Telecom.

''Our new Data Centre will help meet the rising customer requirements for Co-location, Managed Hosting & Data Storage and a suite of other complementary services including Managed Security Services and storage requirements of our customers from across the globe," he added.

The acquisition will allow Tulip to expand its market penetration by addressing new customer requirements in fast growing industry verticals like banking and financial services, manufacturing, IT and ITeS.

Tulip said that it will spend another Rs670 crore in next three years to upgrade the facility and hopes to generate Rs1000 crore when the centre reaches its peak capacity in the next three years.

"The company has made Rs230 crore as the upfront payment, which will come from Tulip's balance sheet, while about Rs270 crore will be generated from the Data Centre revenues, and about Rs400 will come from external funding for which we are in discussion with strategic investors," said Jain.

Tulip already operates four data centres - two in Mumbai, and one each in Delhi and Bangalore.