Telecom Italia develops data centre spin off with Google
Telecom Italia announced this week that it will spin off its data centre business into a new entity that will launch in 2021.
The company released its third quarter financial results this week which, according to , revealed a 5% drop in the company’s total earnings year over year. While this is an improvement on the 10.1% decrease that Telecom Italia experienced in Q2, the firm is undoubtedly struggling.
“Few of Europe's telecom giants look as dilapidated as Telecom Italia,” wote Iain Morris, international editor for Light Reading, in a . “Every few months, another chunk of the edifice seems to be cordoned off or sold in a debt-reduction exercise.”
Alongside the announcement of its financial results, Telecom Italia’s board of directors revealed that they have reached an agreement to spin off the company’s data centre business into an as yet unnamed operator set to launch in the first quarter of 2021.
Telecom Italia currently owns and operates 22 data centres across Italy, as well as its own cloud service business.
“Thanks to the partnership with Google Cloud in the first nine months of the year major clients were won for the provision of joint services to business clients,” said the company in the press statement.
The original plan reportedly involved Telecom Italia raising around $1.1bn from investors in order to retain a majority stake in the new firm, but with the company’s debt rising still higher this year, that may not occur.
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.