NTT Doubles Down On Data Center Focus By Creating New Business

NTT Communications unveiled plans on Tuesday to create a new subsidiary to handle new data center construction, asset management and services sales for NTT Group companies in a move to boost data center investments on a global scale.

Japan-based NTT Communications will establish the NTT Global Data Centers Preparatory Corp. aimed to support the growing demands for data centers across the world while strengthening NTT's data center-related business.

The company plans to launch the new subsidiary by the end of December with hopes to quickly start constructing new data centers in April 2019.

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The new subsidiary, which will be wholly owned by NTT Communications, will integrate NTT's specialist expertise in data center related real estate and finance to create a new data center business structure for faster decision-making and more efficient investment in constructing facilities.

Ryuichi Matsuo, vice president of data centers and cloud services for NTT, is set to become the CEO of the new business.

NTT Group consists of NTT Data, NTT Security, NTT DOCOMO and Dimension Data, ranked No. 9 on CRN's 2018 Solution Provider 500 list.

The company said its goal is to create a data center investment business that will enable NTT to develop globally unified strategies and specifications as well as deliver services to customers as the core of the NTT Group's data center business.

Looking ahead, NTT said it expects to accelerate investments in data centers specifically especially in the U.S., Europe and APAC including Japan through the new business that will be more flexible to scale and offer faster services to customers.

Last month, NTT Data agreed to buy Canadian IT consulting company Sierra Systems. On the channel front, NTT Security recently named John Petrie as CEO for the Americas.