RailTel signs 30-year deal with TECL to build a 10MW data centre in Noida

RailTel Corporation of India, a Navratna PSU under the Ministry of Railways, has entered into a 30-year agreement with Techno Electric & Engineering Company  (TECL) to develop a 10MW data centre in Noida. This strategic move is part of RailTel’s broader push to diversify into the fast-growing digital infrastructure space, leveraging its existing telecom assets and nationwide network.

The project was awarded through a transparent and competitive open tender process, reinforcing RailTel’s commitment to fair and merit-based partnerships. As per the deal, the data centre will be built in phases on RailTel’s land parcel in Noida. The collaboration follows a revenue-sharing model, where RailTel will receive a fixed percentage of the revenue generated from the data centre operations. While the exact earnings are yet to be determined, the model is expected to create a consistent and long-term income stream for the PSU.

The duration of the contract spans three decades, including the implementation period, and comes with an option for extension upon mutual agreement. This long-term framework underscores both companies’ confidence in the growth potential of India's digital economy and the rising demand for data centre services.

RailTel has been steadily evolving from a traditional telecom player into a diversified digital infrastructure provider. It already operates a vast optical fibre cable network covering over 62,000 route kilometres and connects more than 6,000 railway stations across India. The Noida data centre project is part of its ambitious roadmap, which also includes plans for a 30MW facility at the same location.

The company’s growing focus on high-value, non-core revenue streams such as data centres is reflected in its financial performance. In Q4 FY25, RailTel reported a 46.33% jump in standalone net profit, reaching Rs. 113.45 crore compared to Rs. 73.53 crore in Q4 FY24. Its market capitalisation currently stands at Rs. 12,789 crore.

This latest partnership signals RailTel’s clear intent to become a significant player in India’s growing data centre landscape, aligning with national digital goals while enhancing its commercial footprint beyond core railway communications.