Colocation giant Equinix is considerably expanding its presence in South America through the acquisition of several data centers from Empresa Nacional De Telecomunicaciones (Entel), Chile’s largest telecommunications company.
Equinix is expected to pay approximately $705 million for three facilities in Santiago, including the capital’s largest multi-tenant data center. Unusually, the deal “may also include one data center in Peru pending finalization of a definitive agreement,” states the press release.
The acquisition is expected to close in the second quarter of 2022, subject to customary closing conditions.
More Equinix data centers
Equinix is the world’ largest data center operator by revenue, responsible for a staggering 18.3 percent share of the overall colocation market at the end of 2021, according to research by analyst firm Omdia. It operates more than 200 data centers worldwide, including facilities in Brazil, Colombia, and Mexico.
The latest acquisition would allow the company to expand into new, rapidly growing economies: according to IDC, overall enterprise edge spending in Latin America is expected to reach $8.573 billion by 2024.
“Latin America holds enormous potential, and our commitment to the region has exponentially grown since we entered back in 2011,” said Charles Meyers, president and CEO of Equinix.
“Chilean, Peruvian and multinational companies are thirsting for the digital infrastructure required to thrive in today’s economy; with today’s expansion, we’re broadening digital access and accelerating digital transformation across Latin America, while supporting growth in a responsible and sustainable manner.”
Equinix said the four facilities currently generate approximately $53 million in annualized revenue from more than 100 customers.
Under the terms of the deal, around 120 Entel employees and contractors are expected to become Equinix employees or contractors. The two businesses will continue their relationship as strategic partners.
“Entel has transformed over the years, and this partnership, which is more than an infrastructure transaction, is intended to set an important milestone in our strategic plan to extend our offerings into delivering digital services and provide expertise with new solutions that will accelerate our client’s digital transformation,” said Antonio Büchi, CEO at Entel.
