Telecommunications giant China Telecom Global this week announced partnerships with data center operators Global Switch and Daily-Tech.
Under the terms of the deal, CTG and Daily-Tech will gain access to Global Switch’s 10 existing data centers, which includes capacity, services, development and management expertise outside China. According to the trio, the partnership should result in better customer services and allow for global expansion.
The businesses will also work together to collaborate in new market development; contribute to Global Switch’s footprint and capacity, service and system access, and data center, network, and systems integration services.
London-based Global Switch, the world's second-largest wholesale data center provider, majority-owned by the British billionaires David and Simon Reuben, currently operates in Amsterdam, Frankfurt, London, Madrid, Paris, Hong Kong, Singapore, and Sydney, with a combined space of 3.2 million square feet.
The announcement follows acquisition of just under half of Global Switch by an Asian investor consortium called Elegant Jubilee in December. The consortium was put together by Li Qiang, a Chinese telecommunications and internet entrepreneur who holds a stake in Daily-Tech. Investors in the consortium include China’s largest privately owned steel company, Jiangsu Sha Steel Group, Singapore-based asset manager AVIC Trust, as well as institutional investors Essence Financial and Ping An Group.
John Corcoran, CEO of Global Switch, said in a statement on this week's announcement:
“It represents another core building block in our future growth strategy, and is a further demonstration of the springboard and connectivity we can offer to companies seeking to expand within a secure, professionally managed and world class environment.”
At a signing ceremony this week, Li commented:
“This is an innovative, enabling, and global cooperation agreement between three large-scale businesses with significant experience. Ultimately, we aspire to serve more Chinese and international customers by working together.”
