Brazil’s telecommunications giant TIM plans to build 71 more data centers in about 52 cities, to support its storage business.
The company directors agreed to create a spin-off of its data center business, into a new company that will start its operations in 2021. TIM has been building up its presence in the cloud industry, scaling its centers to accommodate more businesses.
In the recent turn of events, European telcos are seeing a shift and pulling back from the market. Some are selling off data centers just to get out of the stiff competition from hype scale. Meanwhile, TIM is eager to join the industry’s table and secure a good position.
The earlier plans to accelerate data centers have been talked about. Its board of directors said the company is eyeing more centers by the end of 2025. Out of the planned 55 new data centers, the company said 16 should become datacenter core (DCC).
These core centers are crucial to centralize functions and get down to more traffic-intensive units. This includes video streaming, applications, and others. These are closer to the end-customer, reducing latency, and increasing speeds.
TIM is renewing its partnership with Google Cloud, after breaking its partnership with the tech giant. Since the company appointed Carlo D’Asaro Biondo, it has developed a new relationship with Google.
In fact, Biondo has joined the operator after more than a decade at Google. TIM also acquired an Italian ICT and systems integration consultancy specializing in cloud systems, so the company has an edge.
It’s also highlighted some efforts in IT infrastructures, remote working, customer experience, and artificial intelligence (AI). TIM is also yet to announce its third-quarter results on the newco and telco.
“With this acquisition, TIM’s path with Google will gather significant speed through the future creation of its own newco dedicated to cloud and edge computing services,” said TIM.
At the end of 2020, the company is aiming for 41 data centers in 29 cities, with 14 of which are DCC in key areas. A subsidiary, Telecom Italia, also announced the acceleration of cloud and has 37 data centers by 2021.
More than speeding up the applications and video streaming for customers, TIM is also evolving its network to cloud-native 5G. This network requires faster load times, benefiting customers in Brazil.
Additionally, the company also plans to have 70 percent of its network functions fully virtualized.