Rostelecom has bought a data center in Medvedkovo, Russia, for ₽26.28 billion ($287m) from 3Data.

Reports of the transaction first surfaced last month. The telco has now closed on the deal in an announcement made by company president Mikhail Oseevsky, according to Interfax.ru.

A report at the time from Kommersant said the data center had been designed for 4,800 racks and had a capacity of 36MW across 24,000 sqm (258,000 sq ft).

3Data, a PNK Group subsidiary, was placed on the US sanctions list earlier this year. The PNK Group owns another data center facility - with a capacity for 25,000 racks- that is already operated by Rostelecom.

Reports suggest the move will increase Rostelecom’s value ahead of a potential IPO later this year.

3Data has 23 data centers around Moscow, with facilities in development or operation in the Vladivostok, Novosibirsk, Ekaterinburg, Stavropol, and Yuzhno-Sakhalinsk areas.

Rostelecom operates data centers in Moscow, Novosibirsk, St. Petersburg, Udomlya, Yekaterinburg, Murmansk City, and Chita. The company also has plans for another 55MW hyperscale data center in Moscow and is said to be developing a facility in Armenia. Rostelecom subsidiary Rostelecom-Data Centre operates 21,000 racks across Russia.