Equinix completed its previously announced acquisition of three data centers in Mexico from Axtel for US$175 million in cash. The three facilities, which serve the Mexico City and Monterrey metro areas, generated approximately $21 million of revenues in the 12 months ending December 31, 2018, with an EBITDA margin profile accretive to the Equinix business.
Equinix said the acquisition, when combined with the previous acquisitions of key traffic hubs in Dallas (Infomart) and Miami (NAP of the Americas), will further strengthen its global platform by increasing interconnection between North, Central and South America.
Key points:
- The three data centers will add approximately 115,000 square feet of colocation space to the Equinix International Business Exchange (IBX) data center portfolio. Given the power capacity of these three sites, this transaction will make Equinix one of the largest network-neutral data center operators in Mexico. Including current expansion projects, Equinix has invested more than $500 million in its Latin American operations including Brazil, Colombia and now Mexico.
- The two data centers that serve the Mexico City metro are strategically located in Querétaro. Both are carrier-neutral facilities with multiple diverse fiber entry points that include five network service providers currently operating within each data center.
- The first facility is a 110,000 gross-square-foot data center with 37,000 square feet of colocation space. It is the first data center in Latin America with an energy cogeneration system. It also features ICREA (International Computer Room Experts Association) certification. This facility has been renamed the Equinix MX1 IBX data center.
- The second facility is currently an 80,000 gross-square-foot data center with 6,000 square feet of colocation space. This facility will provide Equinix with expansion opportunities of up to 60,000 square feet of colocation space. This facility has been renamed the Equinix MX2 IBX data center.
- The Monterrey area facility is a highly connected data center offering a key connectivity gateway between the U.S. and Mexico. It features 25,000 gross square feet of data center space with 12,500 square feet of colocation space. It is a carrier-neutral facility with 10 network service providers. This facility has been renamed the Equinix MO1 IBX data center.
Equinix currently serves several Mexican businesses in IBX data centers outside of Mexico, such as the Mexican Stock Exchange in New York and multiple Mexican network service providers in Dallas. Upon closing, Axtel will be a customer and a strategic marketing partner in Mexico, and Axtel will retain a small minority ownership position in the three sites.