Data centre giant Equinix is continuing its global expansion march with the acquisition of four data centres from Entel in a move that will expand the company’s reach into Chile and Peru.
Equinix has spent billions on acquisitions over the past two years to expand its worldwide market share of now well over 220 data centres, including the purchases of West African data centre provider MainOne and India-based GPX Global Systems.
The US$6.6 billion data centre colocation behemoth has invested US$1.2 billion in its Latin American operations since it first entered the region over a decade ago.
“Latin America holds enormous potential, and our commitment to the region has exponentially grown since we entered back in 2011,” said Equinix President and CEO Charles Meyers in a statement. “Chilean, Peruvian and multinational companies are thirsting for the digital infrastructure required to thrive in today’s economy.”
Equinix is spending approximately US$705 million to buy three data centres in Chile and one data centre in Peru, with Entel’s 120 employees and contractors expected to become Equinix employees. Equinix will also gain Entel’s over 100 customers, most of which will be net-new customers to Equinix.
Entel’s four facilities generate US$53 million in annualized revenue. The acquisition is expected to close in the second quarter of 2022.
Equinix Posts 19 Straight Years Of Revenue Growth
For its recent fourth-quarter 2021, which ended Dec. 31, Equinix generated US$1.71 billion in revenue, representing an increase of 9 percent year over year. It was the company’s 76th consecutive quarter of revenue growth, meaning Equinix has grown revenue for 19 straight years.
When asked during its recent fourth-quarter earnings report about Equinix’s acquisition strategy for 2022, CEO Meyers said M&A is a “very appropriate and powerful tool” that the company has “been very successful at.”
“We’re going to continue to look at [M&A] as an opportunity to extend our reach, scale, our business in key markets and bring in critical air connection assets,” said Meyers. “So yes, we’re actively involved in those processes. We’re going to maintain a level of discipline on that as we always do. … I’m sure you’ll hear more from us over the course of the year on that front.”
Equinix’s Bet In Latin America
Once Entel’s four data centres are under its belt, Equinix will look to extend its presence to five countries in Latin America, including Brazil, Chile, Colombia, Mexico and Peru—operating 15 International Business Exchange (IBX) data centres in seven metros.
Chile is the fourth-largest economy in South America, with the highest GDP per capita in the region. The growth Chile and Peru are experiencing is driving a new set of requirements around data centre and cloud connectivity, according to Jon Lin, executive vice president and general manager for data centre services in the Americas for Equinix.
“With these new sites, businesses in this region, as well as multinationals, will be able to operate on an expanded global interconnection platform to process, store, interconnect and distribute larger volumes of latency-sensitive data and applications at the digital edge, closer to end-users and local markets,” said Lin in a statement.
Equinix also will be present in all of the countries of the Pacific Alliance, which is a trade bloc formed by Chile, Colombia, Mexico and Peru that aims to integrate these markets and achieve free mobility of goods, services, resources and people.