Equinix Acquires Istanbul Facility for $93M
- Oct 10, 2017
In a move to further enhance its global reach, Equinix purchased a facility from Zenium. This will be its second Istanbul data center, now renamed Equinix IS2. The company currently owns more than 180 International Business Exchange facilities across 44 markets, totaling roughly 17 million square feet. Earlier this year, Equinix closed a $3.6 billion deal with Verizon, acquiring a portfolio of 29 facilities across 15 markets.
Equinix acquired three buildings and surrounding land from Zenium for $93 million. Currently, 16,145 square feet represent active colocation space, with plans to increase it to 129,166 square feet and up to 22 megawatts of critical load. The facility generates approximately $2.5 million in annual revenues. Equinix IS2 will enhance the company’s ability to serve international clients, with Istanbul being a gateway between Europe and Asia. Turk Telecom is one of the 10 networks already present at the facility, providing options to businesses that rely on low-latency connectivity across continents.
“The dynamic evolution of digital technology is disrupting how business is done across all industries, forcing companies to invent new, information-centric business models. These business models rely on interconnection and distributed IT architecture. As the Turkish economy continues to grow, Istanbul will become an increasingly important hub for connectivity and technology infrastructure, and this new campus will help Equinix meet this demand from customers across our global customer base,” said Eric Schwartz, president of Equinix EMEA, in a prepared statement.
Slaughter and May acted as legal advisor for Equinix, while RBC Capital Markets served as Zenium’s financial advisor in the transaction.