NTT Communications Corporation, one of the leading global telecommunications companies, recently acquired a new service business as well as majority stake in a second to expand its cloud presence and colocation offerings.
The Tokyo-based NTT acquired Virtela Technology Services, and also gained a majority investment in RagingWire Data Centers. NTT paid $350 million for an 80 percent interest in RagingWire.
This RagingWire acquisition significantly increases the company’s U.S. data center space, more than doubling NTT’s existing facility square footage. RagingWire currently has facilities in Sacramento, Calif. as well as Ashburn, Va., totaling 650,000 square feet between the two data centers. In addition, NTT said that the acquisition will allow it to leverage RagingWire’s patented 2N+2(TM) data center redundancy technology. Representatives of the telecom company said they acquired a high stake in the California-based RagingWire in order to meet growing demand for data center services in North America.
NTT is currently expanding on its RagingWire investment, with the construction of an additional facility in Sacramento, the data center design of which includes 150,000 square feet of space. The telecom giant will develop an additional 78-acre Ashburn data center. See the following for a list of Virginia, California, or Colorado Data Centers.
NTT also paid $525 million for Virtela, which is based in Denver. NTT’s focus with this acquisition was to scale up the company’s existing infrastructure and breadth of services, which include technology to boost hosted application response time. This brings the total amount spent on the two investments to $875 million.
While the amount spent on the new acquisitions may seem steep, it pales in comparison to the revenues NTT plans to bring in. Reuters reported that the company predicts $1.95 billion in cloud service revenues by March 2016. This would double NTT’s 2012 earnings.
NTT will capitalize on its newest investments by offering an alliance of both companies’ services in early 2014.