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Global data center player Equinix is entering the South American market, purchasing ALOG Data Centers in Brazil with private equity firm Riverwood Capital, which will hold a 10% stake, for US$127m.
The purchase gives Equinix control of one of Brazil’s leading carrier-neutral data center service providers.
ALOG has two data centers in Sao Paulo and Rio de Janeiro, and 1,000 customers across each.
It is also building a third data center in Tambore, near the Brazil capital, which will come online with phase 1 in March this year.
Combined, these three data centers offer customers 67,000 sq ft of data center space.
Equinix President and CEO Steve Smith said the move will allow Equinix to cater for clients wanting to enter the South American market.
"ALOG's strong position in Brazil coupled with a complementary business model give us the opportunity to enter this important emerging market and quickly accommodate our customers'demands for data center services in South America,"Smith said.
ALOG’s current CEO Sidney Breyer will continue his role at the company. He said the move will also help ALOG customers expand their global footprint using Equinix’s global connections.
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.