Equinix to Expand into Mexico With US$175 Million Acquisition of Three Axtel Data Centers
The addition of these three facilities in two strategic technology metros in
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
The expansion will support the important role
Mexicois the world's eleventh-largest economy and the second largest in Latin America1. 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.
- 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.
- 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.
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. 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.
- The acquisition of the three Axtel data centers further extends
Equinix'sability to provide businesses with the direct and secure connectivity they need to expand their global reach in new and existing markets. According to Volume 2 of the Global Interconnection Index, interconnection is becoming an essential building block of the digital economy. By providing additional interconnection capacity in these key markets, Equinixcontinues to play an important role in helping companies to extend their IT operations to the digital edge through the interconnection of people, locations, clouds and data.
- Approximately 40 Axtel employees and contractors, primarily in the operations functions of the acquired facilities, will become
Equinixemployees or contractors. Equinixcurrently serves several Mexican businesses in IBX data centers outside of Mexico, such as the Mexican Stock Exchangein New Yorkand multiple Mexican network service providers in Dallas. Upon closing, Axtel will be a customer and a strategic marketing partner in Mexico, and Axtel will retain a small minority ownership position in the three sites.
Equinixoperates more than 200 IBX data centers in 53 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix. Upon closing of the Axtel assets, Equinixwill increase the number of its owned assets by two.
Jon Lin, President, Americas, Equinix:
"Digital transformation is forcing more businesses to evolve their IT infrastructure from centralized to distributed architectures. Customers are seeking new locations to keep their data in proximity to points of consumption and as a part of this evolution, our enterprise and service provider customers have a strong desire to interconnect at the digital edge in
- Equinix Extends the Digital Edge with 12 New Data Centers and 23 Expansions Opening in 2019 [press release]
- The Mexican Stock Exchange Deploys Market Data Access in
Equinix New York Data Center[press release]
- Learn more about Platform Equinix [website]
- Global Interconnection Index Volume 2 [market study]
- With Axtel, Equinix Poised to Accelerate Digital Business in
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, the expected benefits from the acquisition and the expected timing for closing 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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