Equinix has found a Latin American new market to get into, making an inorganic move across the Rio Grande into Mexico. At the end of last week the data center giant fulfilled rumors that had been circulating and announced plans to several data centers from the Mexican service provider Axtel.
The deal is for three facilities, one in Monterrey and two in Querétaro just to the north of Mexico City. Together they span 214K square feet of gross space and 115,000 square feet of colocation space. Axtel generated $21M in revenue from them in 2018. Some 40 employees will also transition over to Equinix, and Axtel itself will remain a customer and strategic marketing partner.
The new footprint in Mexico will join Equinix's existing presence in Brazil and Colombia and complement investments the company has made in gateway cities like Miami and Dallas to better address opportunities in Central and South America. The purchase will cost Equinix $175M, and is expected to close in the first quarter of 2020.
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