Equinix to Acquire 3 Data Centers in Mexico for $175M
- Oct 07, 2019
Equinix’s decision to make its debut in Mexico is part of the company’s expansion strategy, which calls for the extension of the company’s footprint into large markets and growth markets around the globe; Mexico is the 11th largest economy in the world. “Since deregulation occurred in 2013, we have continued to monitor Mexico for market entry,” a spokesperson with Equinix Inc. told Commercial Property Executive. “Based on our evaluation of all potential new markets in the Americas region, Mexico City and Monterrey were identified as top markets. We also have continued to receive significant inquiries about Mexico from our existing customers.”
Two properties are in Querétaro, just outside Mexico City. The 110,000-square-foot Querétaro I includes 37,000 square feet of colocation space and 6.3 megawatts of total built capacity, while the 80,000-square-foot Querétaro II encompasses 6,000 square feet of colocation space expandable to 60,000 square feet and 8 megawatts of total built capacity. The location offers such advantages as a position outside of seismic zones, no flood risk and an area where other multinational companies have set up shop, per the spokesperson. The Monterrey data center is a 25,000-square-foot facility with 12,500 square feet of colocation space and 1.2 megawatts of total built capacity, and it provides a key connectivity gateway between the U.S. and Mexico.
Equinix expects to close the acquisition in the first quarter of 2020, at which point Axtel will be a customer as well as a minority owner in the three facilities that will be part of Equinix’s International Business Exchange data center portfolio. With the finalization the transaction, Equinix will have invested in excess of $500 million in Latin America operations since its foray into the region with the purchase of a data center in Brazil in 2011. The company will have also increased its portfolio of owned data centers to 90.
Equinix revealed a major expansion plan in May of this year, expounding on plans for a non-recurring capital expenditure program of as much as $1.9 billion in 2019 for 12 new IBX data centers and the expansion of 23 existing properties. New facilities on the list include the company’s first data center in South Korea, which is currently under construction. Additionally, Equinix opened its 11th data center in Tokyo, a property with 158,000 square feet of planned collocation space, making it the company’s largest IBX in Japan.
The remaining new facilities will span Europe and additional locations in Asia. “Equinix will continue to evaluate expansion targets—both acquisition and organic—in the future,” the spokesperson added. “Over the years, we have been investing in expanding our data center footprint globally including in Latin America to address the rising customer demand. We will continue to listen to our customers when formulating our expansion plan.” Currently, Equinix operates more than 200 IBX data centers in 53 markets around the world.