RailTel Corporation of India (RailTel) has entered into a 30-year agreement with Techno Electric & Engineering Company (TECL) to develop a 10-megawatt (MW) data centre in Noida. The initiative is part of RailTel’s broader strategy to expand into the rapidly growing digital infrastructure sector, leveraging its extensive telecom assets and pan-India network.
The project was awarded through a transparent and competitive tendering process, reflecting RailTel’s commitment to fair and merit-based collaborations. Under the agreement, the data centre will be constructed in phases on RailTel’s land parcel in Noida. The partnership will operate on a revenue-sharing model, with RailTel receiving a fixed percentage of the revenue generated. While projected earnings have not been disclosed, the model is expected to ensure a stable and long-term income stream for the PSU.
Further, the contract spans 30 years, including the implementation period, and includes a provision for extension upon mutual agreement. This long-term arrangement underscores both companies’ confidence in the growth prospects of India’s digital economy and the increasing demand for data centre services.
Currently, RailTel manages a vast optical fibre network covering over 62,000 route kilometres and interconnecting more than 6,000 railway stations across the country. The Noida facility forms part of its larger roadmap, which also includes plans for a 30MW data centre at the same site.
