Kio Data Centers, a Mexican-based operator, has signed a 10-year Power Purchase Agreement (PPA) with Colombian energy company Celsia to supply power for its Panamanian data center operations.

First reported by Bnamericas, the PPA is the company’s first to be recorded in Panama. The volume of supply set to be provided to Kio was not disclosed.

Reflecting on the agreement, Kio said the contract will provide “energy certainty” through a long-term planning horizon, mitigating exposure to market volatility.

“This partnership positions Kio Data Centers as one of the providers with the highest level of energy certainty in the region,” the company added.

Kio Data Centers (formally known as Kio Networks) was founded in 2002 and operates predominantly across Latin America and the Caribbean. The company operates approximately 20 data centers across the region, including 13 in Mexico. It has been owned by I Squared Capital since 2021.

In Panama, the company operates one data center campus, located in Panama City. The facility, known as KIO PAN1, commenced operations in 2012 and was the company’s first expansion outside the Mexican market. The facility is relatively small-scale, spanning two data halls, with around 600kW of data center capacity.

Celsia is the energy subsidiary of the Colombian conglomerate Grupo Argos. It operates a combined capacity of approximately 1.8GW across Colombia, Panama, Costa Rica, and Honduras. Its generation portfolio spans hydro, solar, and wind assets.