Netmagic to invest Rs 90 cr in data centres

Managed IT services provider Netmagic Solutions will invest about Rs 90 crore over the next two years to set up data centres. The company launched a 30,000-square-feet data centre in Chennai on Tuesday. It also plans to set up a data centre in the national capital region in six months.

Apart from civil expenses, it will be investing close to Rs 25,000 per square foot on the 18,000-square feet-raised floor in Chennai, said Sharad Sangi, chief executive officer and managing director of Netmagic Solutions. The company is expecting 15 per cent to 20 per cent of its revenue to come from the Chennai facility.

Netmagic is now scouting for space in NCR and projects investments between Rs 40 crore and Rs 45 crore over two years. “We raised $4 million in the first round of funding in 2000 and $20 million in the second round in 2008. The second investment is in two tranches of $15 million and $5 million. While we will be using the money to set up data centres, we are also ploughing back our profits into the business. The company has been profitable since 2003,” Sangi said.