Digital Realty, Ascenty to build inaugural Chile data centre

26 April 2019 | Jason McGee-Abe

Cover

Digital Realty and Ascenty have signed a long-term, multi-megawatt agreement with a global cloud provider to build a new data centre in Santiago, Chile.

Construction of the facility, which is scheduled to open in 2020, commenced immediately upon signing the agreement, and the new facility, which is expected to deliver up to 6.3MW of total IT capacity.

The new data centre will be connected via an underground dark fibre network to facilitate interconnection between the data centre, critical networks, cloud, and connectivity providers in a single, secure environment.

"We are pleased to support the growth of a strategic customer as they expand into a new market," said William Stein, chief executive officer of Digital Realty.

"Chile is one of Latin America's most developed countries, with the highest GDP per capita in Latin America, and we are well-positioned to power our customers' digital ambitions in a region poised for rapid growth."

Chris Torto, chief executive officer of Ascenty, added: "This is an important milestone in our expansion as the leading provider of data centre solutions in Latin America.  Chile is positioned to emerge as a leading technology hub in the region, and the development of our first facility in the country will enhance our ability to meet the growing customer demand for comprehensive data centre and colocation solutions in Latin America."

Digital Realty’s Brazilian subsidiary, Stellar Participações, completed the strategic acquisition of Ascenty in December 2018 from private equity firm Great Hill Partners in a transaction valued at approximately $1.8 billion.

Brookfield Infrastructure committed to fund half of the equity investment, estimated at around $613 million, and earlier this month completed its purchase of a 49% stake in Ascenty from Digital Realty.

Ascenty, a joint venture between Digital Realty and Brookfield Infrastructure, delivers high-speed connectivity and availability and offers new alternatives to meet corporate connectivity requirements in Latin America.

The Latin American data centre provider, which presently has 17 facilities in operation or under construction, has a dedicated 4,500km fibre-optic network connecting all the company's facilities, located in major cities in the Brazilian states of São Paulo and Rio de Janeiro, as well as Fortaleza, to leading cloud service providers, building a wide-ranging and secure interconnection platform.

At the start of the year, Digital Realty entered into an agreement with over fifteen different underwriters to sell $1 billion in stock over an extended period of time. In November, Digital Realty has named Gregory Wright as its new chief investment officer, reporting into Stein and leading all of the company’s capital allocation activities.