Equinix Completes US$175 Million Acquisition of Three Data Centers in Mexico
This expansion, when combined with previous
- The three data centers will add approximately 115,000 square feet of colocation space to the Equinix International Business Exchange™ (IBX®) data center portfolio. Given the power capacity of these three sites, this transaction will make
Equinixone of the largest network-neutral data center operators in Mexico. Including current expansion projects, Equinixhas invested more than $500 millionin its Latin American operations including Brazil, Colombiaand now Mexico.
- The two data centers that serve the
Mexico Citymetro are strategically located in Querétaro. Both are carrier-neutral facilities with multiple diverse fiber entry points that include five network service providers currently operating within each data center.
- The first facility is a 110,000 gross-square-foot data center with 37,000 square feet of colocation space. It is the first data center in
Latin Americawith an energy cogeneration system. It also features ICREA ( International Computer Room Experts Association) certification. This facility has been renamed the Equinix MX1 IBX data center.
- The second facility is currently an 80,000 gross-square-foot data center with 6,000 square feet of colocation space. This facility will provide
Equinixwith expansion opportunities of up to 60,000 square feet of colocation space. This facility has been renamed the Equinix MX2 IBX data center.
Monterreyarea facility is a highly connected data center offering a key connectivity gateway between the U.S. and Mexico. It features 25,000 gross square feet of data center space with 12,500 square feet of colocation space. It is a carrier-neutral facility with 10 network service providers. This facility has been renamed the Equinix MO1 IBX data center.
- The three facilities generated approximately
$21 millionof revenues in the 12 months ending December 31, 2018, with an EBITDA margin profile accretive to the Equinixbusiness.
- As a part of the agreement, existing colocation customers within the three data centers will transition to
Equinix. Axtel will be both a customer as well as a strategic marketing partner of Equinixin Mexico. Equinixplans to offer Equinix Cloud Exchange Fabric™ (ECX Fabric™) in all three data centers. ECX Fabric is an on-demand, SDN-enabled interconnection service that allows any business to connect between its own distributed infrastructure and any other company's distributed infrastructure, including the world's largest network service and cloud providers, on Platform Equinix®.
- According to Volume 3 of the Global Interconnection Index, a market study published by
Equinixthat analyzes traffic exchange globally, Latin Americais expected to see the greatest interconnection bandwidth growth globally, forecasted to grow at a 63% compound annual growth rate (CAGR) by 2022. Mexicois the world's eleventh-largest economy and the second largest in Latin America.1 The country's telecommunications reform of 2013 has created opportunities for many businesses seeking to expand into Mexico, allowing for open competition by non-governmental entities and providing an opportunity for the growth of service provider and enterprise ecosystems that flourish within Equinix'snetwork-neutral data centers globally. As a result, Equinixbelieves there is uncaptured market demand in the region for interconnection and data center services if bandwidth requirements and end-user demand continue to increase as expected.
Equinixoperates more than 200 IBX data centers in 55 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix.
Nava Cortinas, CEO, Totalplay Empresarial
"We live in a digital age where everything and everyone are increasingly connected. The growing amount of data, combined with advances in mobile communications, is increasing the need for users to have continuous access to information and content. For Totalplay Empresarial, it is essential to provide the best possible experience for our customers.
Dan Thompson, Research Director, 451 Research
"As Latin America is forecasted to be the fastest-growing region for colocation services over the next five years, this acquisition positions
Jon Lin, President, Americas, Equinix:
"The addition of these three facilities in two strategic technology metros in
- Equinix Data Centers in
MexicoOpen Up Global Gateway to Networks and the Cloud [blog] Equinixto Expand into Mexico With US$175 MillionAcquisition of Three Axtel Data Centers [press release]
- Equinix Extends the Digital Edge with 12 New Data Centers and 23 Expansions Opening in 2019 [press release]
- Equinix IBX Data Centers Serving Mexico City [website]
- Equinix IBX Data Center Serving Monterrey [website]
- Learn more about Platform Equinix [website]
- Global Interconnection Index Volume 3 [market study]
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of data centers from Axtel and the expected benefits from the acquisition. Factors that might cause such differences include, but are not limited to, unanticipated costs or difficulties relating to the integration of data centers or companies we have acquired or will acquire into
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