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Equinix-owned ALOG Data Centers has opened the first phase of its third International Business Exchange (IBX) in Brazil, increasing the colo player's presence in Latin America.

Phase one of SP2 caters for 400 cabinet equivalents and ALOG said this could grow to 1,200 as future phases are built out.

The data center in Tambore is its second in the Sao Paulo metropolitan area. It complements its other operation in Rio e Janeiro.

It will link up with other IBX centers that are part of Platform Equinix, a high-performance data center network which covers 37 markets across the Americas, Europe, Middle East, Africa and Asia-Pacific.

ALOG CEO Sidney Breyer said the company has seen demand increase in Brazil since the Equinix takeover, funded in partnership with Riverwood Capital in April this year.

"Becoming part of Platform Equinix has increased demand as Brazilian companies look to expand into new regions and multinational companies are eager to establish or expand their presence in Brazil's rapidly growing economy," Breyer said.

"The addition of our new Tambore site will allow us to support our customer's growth and meet strong demand for our carrier-neutral data center services."

Increased trading activity in Brazil has been highlighted by the growing presence of fiber connections in South America allowing direct market access to trading partners in Brazil.

Orange Business Services Trading Solutions recently added its electronic trading infrastructure services for trading communities through Equinix's NY4 data center in New York, with the Brazilian market connected by Equinix's ALOG operations in mind.

At the time of Equinix and Riverwood's purchase ALOG had 67,000 sq ft of data center space in Brazil, and Equinix made it clear it viewed ALOG as a strategic purchase to capitalize on the growth of the Brazilian trading markets.

Financial services firm JP Morgan has positioned Brazil to be the world's fifth largest economy this decade, while Gartner said Brazil's end-user IT spending will reach US$101.3bn in 2010, making it the second largest IT market in the emerging economies.