Ctrl S to invest Rs 750cr

"The global nature of companies, of late, has been changing with software-as-a-service (SaaS) and grid computing increasingly becoming popular, creating a spurt in demand for data centres. This high-growth industry in India, however, has no significant third-party player as yet. To cash in on this demand, we have proposed to set up data centres in Chennai, Bangalore, Pune, Mumbai, Delhi and Kolkata," said its chairman and managing director PS Reddy.

The company is expected to achieve financial closure of Rs 750 crore for its expansion, which is proposed to be funded in a debt-equity ratio of 60:40, in the next two months, he added.

"Work on the six data centres, including land acquisitions and leasing deals, has already begun and we expect the centres to be fully operational by this year end. Initially, the centres would house 8,000 racks, which would be scaled up to 20,000 racks in four years, with an additional investment of Rs 250 crore," Reddy said.

Ctrl S, is promoted by Hyderabad-based Rs 700-crore Pioneer Group and is backed by New York-based Och-Ziff Capital, the fifth largest fund in the world with more than $31 billion unleveraged funds, and IDBI Bank as its investors.

It had set up the country's first tier-4 data centre, the highest category of data centres in the world with 99.999 per cent availability, in Hyderabad in February this year. The company has so far invested Rs 25 crore in the facility.

"The Hyderabad facility has 400 racks, currently catering to over 12 clients including a $125-billion US telecom company, and Kuwait-based multi-billion dollar conglomerate Alghanim Industries, which brought in a $2-million order (Rs 8 crore). The capacity would be increased to 1,000 racks by the end of June this year. We are in talks with a few top-of-the-line companies, mostly in the US, and expect the deals to reach fruition soon," Reddy said.

According to conservative estimates, the data centre market in India is currently pegged at $983 million, which is expected to touch $1,467 million by 2010. Globally, the market is $50,052 million, which is predicted to reach $59,336 million by 2010.