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

Telecom Italia (TIM) said it planned to spin off itsdatacentreoperations and look for an investor ahead of a potential market listing, after unveiling apartnershipwithGoogleto develop the cloudbusiness.

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

In presentation slides on its website,TIMsaid it would place thedatacentresundera newly-created legal entity.

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

On Thursday,TIMa strategicpartnershipwithGoogleon the cloud service market.