Tata Setting up Data Center in London

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India's Tata Communications is setting up a data center outside London as part of its strategy to expand in key markets worldwide.

The company said earlier this month that it was investing US$180 million to open a data center in Singapore by next year. The investments in Singapore and the U.K. are part of the company's plan to invest $2 billion up to 2012 to expand its global presence, a Tata Communications spokeswoman said on Wednesday.

The company is seeing a growing customer interest in infrastructure like data centers and communications cable links, and is investing to take advantage of it, she said.

Tata Communications said earlier this month that it had invested $250 million in a 6,700 kilometer cable system that connects emerging markets such as the Philippines and Vietnam, besides Singapore and Japan. This investment was also part of the $2 billion investment for global expansion planned by the company, the spokeswoman said.

The new data center, which will be located 25 kilometers from London, is the company's third in the U.K., Tata Communications said on Wednesday. It will be in operation by the second quarter of this year. The center, which will have 21,400 square feet, has been described by the company as a Tier 3 data center that will support mission critical infrastructures.

Tata Communications did not disclose how much it was investing in the center.

A growing number of U.K. companies are looking to outsource their hosted IT operations to free up capital, the company said.

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