Deepti Chaudhary, deepti.c@livemint.com

NTT Communications Corp., a unit of Japan's Nippon Telegraph and Telephone Corp, will buy a 74% stake in Indian data centre services provider Netmagic Solutions Pvt. Ltd.

Netmagic operates seven data centres in cities, including Mumbai, Chennai, Noida and Bangalore, and provides services just as cloud computing, infrastructure management, disaster recovery solutions and hosting computer software applications to about 1,000 clients.

Acquisitions in the data centre space may increase as Internet application businesses is one of the fastest-growing segment in India, be it for electronic commerce or infrastructure for cloud computing, said Deepak Srinath, director of Bangalore-based investment bank Viedea Capital Advisors Pvt. Ltd.

"This alliance will help Netmagic to leverage NTT Com's global network and data centre footprint for clients," said Sanghi. "The partnership will as well help us strengthen our growth plans in the Indian sub-continent and globally."