Equinix spends $735m on five Chilean data centres
Equinix has completed the acquisition of four data centres in Chile from Chilean telco, Empresa Nacional De Telecomunicaciones (Entel).
Equinix says it has also signed an agreement to acquire an additional data centre in Peru from Entel, which combined with the aforementioned four Chilean facilities, has enterprise value of roughly US$735 million and together generate approximately US$55 million of annualised revenue.
The four Chilean data centres are located in the Santiago metro area, and include the Ciudad de los Valles location, home to two data centres with approximately 170,000 gross square feet combined; a downtown Santiago site, which features approximately 46,000 gross square feet; and an approximately 31,000 gross square foot facility in Longovilo.
The data centre in Peru is approximately 16,000 gross square feet and is located in Lima. The transaction due to close in "coming quarters", subject to closing conditions.
"We continue to see demand from businesses in Latin America, across all sectors, looking to transform their operations to be digital and cloud-enabled. Equinix's expansion into Chile and Peru accelerates digital transformation opportunities in this rapidly growing region and is a critical step in our long-term strategy to broaden digital access for our customers globally," said Tara Risser, president of Americas, Equinix.
"Chile's access to sustainable energy sources such as solar, hydro and wind helps our customers in the region—as well as multinationals doing business with them—to grow responsibly and sustainably, which aligns with our global sustainability strategy."
The new sites will complement Equinix's existing Latin America portfolio comprised of 11 International Business Exchange (IBX) data centres in Brazil, Colombia and Mexico.
The deal will also see Equinix gain approximately 100 Entel employees and contractors, as well as more than 100 Entel customers.
As is the norm, Equinix plans to roll out its full suite of interconnection and digital services to the four data centres in Chile, this include Equinix Fabric, Network Edge, Equinix Internet Exchange, Equinix Internet Access and Metro Connect, once the business integration is completed.
Under the terms of the agreement, Equinix and Entel will partner to give enterprises with hybrid multi-cloud solutions in support of their digital transformation journeys.