What do you get a data center REIT that operates over 200 data centers in 11 countries on 4 continents? The fifth continent so it would seem. According to a report from Bloomberg yesterday, that's what Digital Realty is working on.
According to Bloomberg, Digital Realty is in talks to buy its way into Brazil with the acquisition of Ascenty. Ascenty, whose owners include Great Hill Partners and Blackstone Group, operates eight data centers across the markets of Sao Paolo, Rio de Janerio, and Fortaleza backed up by some 2,500 route miles of terrestrial fiber.
Digital Realty closed its buy of DuPont Fabros last fall, so the timing would be about right for a new deal. The company has never been shy with its consolidation activities, previously making big deals for a collection of Equinix facilities and for Telx not so long ago.
M&A is a tried and true means to enter the data center market in Brazil, and thus this rumor is entirely credible. Of course, that doesn't mean it will happen. Ascenty would cost somewhere in the $1B range.