Equinix continues to expand in South America. The company's Brazilian business unit, ALOG Data Centers, plans to build a new International Business Exchange (IBX) data center in Rio de Janeiro, which will be the site of the 2016 Summer Olympics. The $20 million facility is scheduled to open in the first quarter of 2013, with a first phase that will house up to 320 cabinets, en route to a total capacity of 1,170 cabinets once the data center is completed.
Equinix also announced ALOG will begin construction on phase two of its SP2 data center in São Paulo, which is expected to be available in early 2013. SP2 phase two will have space for an additional 350 cabinets and is expected to cost $14 million in expansion capital.
"As the seventh largest economy in the world, Brazil is experiencing continued economic and infrastructure expansion, making it an attractive country for multi-national investment,” said Charles Meyers, president of the Americas for Equinix. “With the expansions in São Paulo and Rio de Janeiro, we are in a strong position to support increasing demand for Platform Equinix from key global customers looking to expand in the region.”
Last year Equinix teamed with private equity firm Riverwood Capital in a $127 million deal to buy 90 percent of ALOGl. Equinix holds a controlling interest in ALOG, while Riverwood holds a significant minority stake and approximately 10 percent is owned by ALOG’s management team.