Equinix, the global interconnection and data center company, is continuing its global expansion into new markets. The company has entered into an agreement with Axtel S.A.B. de C.V. to acquire three data centers that serve the Mexico City and Monterrey metro areas of Mexico for US$175 million in an all-cash transaction. Equinix expects to close the acquisition in Q1 2020, subject to customary closing conditions, including regulatory approval.
According to Equinix, this acquisition, when combined with the previous acquisitions of key traffic hubs in Dallas and Miami, will further strengthen its global platform by increasing interconnection between North, Central, and South America. With three more data centers, the colocation giant will add approximately 115,000 square feet of colocation space to the Equinix International Business Exchange(IBX) data center portfolio. The company claims that the transaction would make Equinix one of the largest network-neutral data center operators in Mexico.
"The three Axtel data centers that serve the Mexico City and Monterrey metros provide an optimal market entry for Equinix to bolster operations in the region and facilitate even greater interconnection within the Americas region and between the Americas, Asia, Australia and Europe," said Jon Lin, president of the Americas for Equinix, in a statement.
Axtel’s two data centers that serve Mexico City metro are located in Querétaro. They are carrier-neutral facilities with multiple 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. The second facility is currently an 80,000 gross-square-foot data center with 6,000 square feet of colocation space. Meanwhile, the Monterrey area facility has 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.
Equinix is actively extending its global leadership into attractive large-growth markets. The Redwood City, Calif.-based company has invested more than $500 million in its Latin American operations including Brazil, Colombia and now Mexico. Equinix operates more than 200 IBX data centers in 53 markets on five continents. Upon closing of the Axtel assets, Equinix will increase the number of its owned assets by two.