Australian government agency, the Department of Finance and Deregulation has signed an $8.6 million contract to use data centre services provided by regional telco TransACT, an iiNet subsidiary, almost four months after inking a larger agreement with Canberra Data Centres (CDC).\nThis is the Department of Finance and Deregulation\u2019s second agreement under the Australian Government Information Management Office\u2019s (AGIMO) Data Centre Facilities Panel, which was created in March 2011. The existing 10-year deal with Canberra Data Centres is worth $45.6 million.\nThe Department of Finance and Deregulation joins federal government superannuation administrator ComSuper as the first agencies to sign data centre leasing agreements with TransACT and CDC. It is believed that other agencies are looking to sign contracts soon.\nUnder the AGIMO panel, the government uses its collective purchasing power to gain access to high quality data centre facilities. Agencies aren\u2019t required to approach the market themselves and benefit from better contract terms and pricing.\nMundi Tomlinson, assistant secretary, strategic sourcing, Australian Government Information Management Office, Department of Finance and Deregulation, wrote in an AGIMO blog entry that the minimum requirements for a data centre lease is 500m2 of data centre space and\/or 500kw of power supply for a 10-year period.\n\u201cThese minimums were established as the point where the government is benefitting from its coordinated buying power,\u201d Tomlinson said. \u201cAGIMO is responsible for building consortia for agencies that are unable to meet the minimum requirements.\u201d\nIvan Slavich, TransACT\u2019s chief of federal government and ACT, said that agencies were now able to purchase tailored amount of data centre space through simplified procurement procedures.\n\u201cTen year agreements allow organisations to invest with confidence and this lengthy agreement is proof of the quality of TransACT\u2019s locally-based infrastructure,\u201d Tomlinson said in a prepared statement.\niiNet Group, which acquired TransACT in November 2011, has also invested in a 4.5MVA power and support infrastructure upgrade, increasing the capacity and resilience of its data centre facilities.