Google and Amazon are apparently in the running to purchase Tata Communications’ data centre business that could sell for anywhere near $650-$700 million.
The two technology powerhouses are going up against private equity funds who are all looking to buy up to 74% stake in the data centre unit and business itself.
Singapore-based Sembcorp Industries has also had a few rounds of discussions with the Tata Group management regarding the buyout, according to ET.
Offloading its data centre business will allow Tata Communications to reduce its debt burden and concentrate on its core data carrier business.
Tata Communications has data centres in metros such as New Delhi, Mumbai, Bengaluru, Chennai, Kolkata and Pune, and also in the US, UK and Singapore.
For both Google and Amazon, the deal will allow them to expand their cloud infrastructure businesses in India as more enterprises opt to outsource IT infrastructure services.
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