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Italy's TIM to expand data centre business under partnership with Google

File photo: Telecom Italia logo is seen at the headquarter in Rozzano neighbourhood of Milan, Italy.  Photograph:( Reuters )

Reuters Milan, Italy Nov 08, 2019, 05.17 PM (IST)

Telecom Italia (TIM) said it planned to spin off its data centre operations and look for an investor ahead of a potential market listing, after unveiling a partnership with Google to develop the cloud business.

The move is part of a plan by Chief Executive Luigi Gubitosi aimed at reviving the former monopoly, an underperforming business saddled with 24 billion euros of debt.

In presentation slides on its website, TIM said it would place the data centres under a newly-created legal entity.

TIM will then look for an infrastructure investor that could enter the capital of the new data centre company to finance its expansion while keeping control of it. It could also consider listing the new entity down the road.

On Thursday, TIM a strategic partnership with Google on the cloud service market.

Story highlights

The move is part of a plan by Chief Executive Luigi Gubitosi aimed at reviving the former monopoly - an underperforming business saddled with 24 billion euros of debt.