UPDATE 1-Telecom Italia looks at spin-off, IPO of data center business -source

-source@ (Adds source comment, company comment)

ROME, Oct 8 (Reuters) - Italian phone group Telecom Italia is considering a possible spin-off and listing of its data center business, a source close to the matter said on Tuesday.

This confirmed an earlier report from Bloomberg that the telecoms company was thinking of putting the business into a separate unit before launching an initial public offering.

"The data center deal is an idea that could happen next year," the source said.

Telecom Italia declined to comment.

Data centers house computer systems and servers, collecting and managing the IT operations processed by the servers.

(Reporting by Elvira Pollina, editing by Silvia Aloisi and Jane Merriman)