09 July 2018
| Alan Burkitt-Gray
Digital Realty is in talks about buying Ascenty, which operates eight data centres in Brazil and is planning six more.
A still unconfirmed report says that Digital Realty is
talking to Great Hill Partners, the private-equity owner of
Ascenty. None of the partners are commenting on the report from
Bloomberg, which cited "people with knowledge of the
According to Bloomberg the talks are about Digital Realty
working with a joint venture partner, leading to speculation
that this might by Mitsubishi, which already has a joint
venture with it to operate data centres in Japan.
The report says that Ascenty’s customers in Brazil
include Amazon, Facebook and Oracle. The company has its own
4,000km fibre network linking São Paulo, Rio de Janeiro
and Fortaleza, the coastal city that that has
become a landing point for a number of subsea cables from
the US, the Caribbean and Africa. The company opened its first data centre in São Paulo in
March 2017 and was planning to open its second the
Bloomberg reported in April 2018 that Great Hill was talking to
potential buyers of Ascenty, though at the time it suggested
other private equity investors were involved. The starting
price was put at $1 billion, though the latest report says it
could be much higher.
Great Hill describes Ascenty as "a leading provider of high
bandwidth connectivity and data centre solutions primarily to
large corporate enterprise clients and wireless communication
carriers in Brazil". It has owned a stake since 2011.
Rio de Janeiro,