NTT Communications Corp., an ICT solutions subsidiary of the Tokyo-based telco giant NTT Group, announced an agreement to buy an 80% stake in RagingWire, a US data center provider, for US$350m.
RagingWire's two data center campuses in Sacramento, California, and Ashburn, Virginia, will double NTT Com's US data center space.
RagingWire already comes with an annual revenue of about $85m, according to NTT Com. Its founders and management team will continue to operate the company as a platform under the RagingWire brand and maintain a minority interest in the company.
Akira Arima, CEO of NTT Com, said, “We are rapidly expanding our capabilities to provide cloud and telecommunications solutions worldwide and the deal with RagingWire is critical to increasing our overall capacity, providing data center infrastructure management tools which enhance colocation service’s reliability and efficiency.”
RagingWire has 650,000 sq ft of data center space at its campuses, both of which are currently being expanded. The company has also begun construction of a new 150,000 sq ft data center in Sacramento and will soon break ground on a 78-acre parcel of land in Ashburn, with designs to build 1.5m sq ft of data center space.
NTT Com provides services out of 150 data centers worldwide. It currently has data centers in eight US cities.
Its parent company also owns a major data center provider in the US, called NTT America.