New Delhi: Navratna PSU RailTel Corporation of India Ltd has selected Techno Electric & Engineering Co. Ltd (TECL) as its Managed Service Data Centre Partner for the development of a 10MW capacity data centre in Noida. The project will be executed in phases on RailTel’s land and will operate on a revenue-sharing model, according to the company’s official filing to the stock exchange.
Project Awarded via Competitive Bidding
RailTel confirmed that Techno Electric emerged as the selected partner through an open tender process. A Letter of Intent (LOI) has already been issued, setting the stage for a long-term partnership.
As per the agreement, the initial tenure is 30 years, including the implementation period. The partnership may be extended further with mutual consent between RailTel and TECL, ensuring flexibility for potential expansion or continued collaboration.
Revenue Model & Financial Impact
The data centre project is based on a fixed percentage revenue-sharing model, with RailTel receiving a share of earnings over the operational life of the facility. However, the exact financial impact is yet to be quantified.
Read Also: RailTel Reports Robust Financial Performance in Q4 and FY25; PAT Jumps 74% QoQ
“Since this is an earning award, RailTel will receive revenue share on a fixed percentage basis. The quantum of earning cannot be determined at this stage,” the company stated in its exchange filing.
This model allows RailTel to unlock value from its land assets without incurring upfront capital expenditure, while TECL handles implementation, operation, and service delivery.
Boost to Digital Infrastructure Strategy
The planned 10MW data centre aligns with RailTel’s broader strategy to leverage its pan-India optic fiber network and expand into digital infrastructure, including edge computing and cloud services. The Noida facility is expected to support rising demand from public and private sector clients for secure, scalable, and high-performance data solutions.
Market Reaction: Shares Surge Over 4%
Following the announcement, RailTel’s shares surged 4.04%, closing at ₹414.75 on the Bombay Stock Exchange (BSE), reflecting investor optimism around the revenue potential and long-term strategic significance of the deal.
Key Digital Asset
The RailTel–Techno Electric partnership marks a significant move in India’s data infrastructure space. With a 30-year roadmap and a scalable model, the Noida data centre could become a key digital asset supporting the country’s growing demand for data localization, cloud adoption, and enterprise services.
About RailTel
RailTel, a “Navratna” Central Public Sector Enterprise, is a leading provider of Information and Communication Technology (ICT) services in India, operating a nationwide optical fiber network. It was formed in 2000 to modernize railway communications and provide broadband and multimedia services using railway tracks’ right-of-way. RailTel’s services include broadband telecom, multimedia networks, and IT & ICT solutions, including data center services and Wi-Fi. RailTel boasts a vast optical fiber network, with over 61,000 route kilometers and 21,000 kilometers of citywide access.
