ASX-listed telecommunications provider Vocus said it is buying 536 sq m of Perth CBD colocation space through the acquisition of data center operator Perth iX, in Western Australia.

Vocus has already paid a minimum purchase price of AU$6.275m cash for Perth iX but an additional earn-out of AU$725,000 has been negotiated for if the company exceeds its FY12 forecasts.

Vocus CEO James Spenceley said once the sale is complete Vocus plans to consolidate its Vocus Data Center business to create a national footprint, tying in its data centers in Melbourne, Victoria and Sydney, New South Wales.

"This transaction will further consolidate Vocus? position as one of the leading independent 

wholesale telecommunications and data centre operators in Australia and New Zealand," Spenceley said.

He said colocation space is in demand in Perth, with "few racks available in CBD facilities" there.

"We expect to see strong demand for the racks as they become available," Spenceley said.

Perth iX already has 86 customers and its general manager Adam Gardner, who will remain in his position, said business operations for them will remain the same. Staff will be absorved into Vocus' operations.

In recent years, Perth has attracted a lot of interest from the data center market. Its proximity to Asia and Australia's mining industry has seen demand surge.

Perth iX's data center has only recently seen an upgrade, with more efficient cooling, supporting medium density of up to 4kW per rack, N+1 redundancy, upgraded security and fire suppressant systems and a comprehensive building management system.