Will spend $175 million to buy three data centers in the country
Equinix is extending its reach south of the border, where it also has a presence in Brazil and Colombia.
The Lowdown: The co-location and data center expert will spend $175 million to buy the data centers from Axtel SAB, adding to the global trend of data center acquisitions worldwide that’s driven by organizations moving more of their businesses into the public cloud or to co-location facilities.
The Details: The data centers Equinix is buying serve the areas around Mexico City and Monterrey and generated a combined $21 million in revenue in 2018. This will add about 115,000 square feet of co-location space to Equinix’s International Business Exchange (IBX) facilities around the world and bring the total investments in its Latin America initiatives to $500 million. Equinix has also made acquisitions in Dallas and Miami to improve interconnections between North, Central, and South America.
The company will bring its Equinix Cloud Exchange Fabric (ECX Fabric) to the three data centers in Mexico. ECX is an on-demand interconnection service that enables businesses to connect their own distributed infrastructures to that of any other company’s on Platform Equinix.
The deal is expected to close in the first quarter 2020.
Background: More than 50 data center M&A deals have closed since the beginning of the year, and more than 300 since 2015, all with an aggregate value of more than $65 billion, according to analysts with Synergy Research Group. Many organizations no longer want to deploy and manage their own data centers, preferring instead to move workloads and data to the cloud or co-location facilities. Equinix and Digital Realty have been the largest acquirers during that time, the analysts said.
Equinix currently runs more than 200 IBX data centers – not including the Axtel sites – in 53 markets.
The Buzz: “Digital transformation is forcing more businesses to evolve their IT infrastructure from centralized to distributed architectures,” said Jon Lin, president of Americas for Equinix. “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 Mexico. The three Axtel data centers that serve the Mexico City and Monterrey metros provide an optimal market entry for Equinix to bolster operations in the region and facilitate even greater interconnection within the Americas region and between the Americas, Asia, Australia, and Europe.”