Everyone may still be sheltering in place or whatever, but Digital Colony has managed to keep busy nevertheless. The investment arm of Colony Capital has a new infrastructure target in its sights: Brazil. Digital Colony has announced an agreement to acquire a selection of data center assets from Brazil's Group Folha's UOL Diveo unit.
The assets will be organized into a new data center platform based in Sao Paulo. It will be called Scala Data Centers, and will be led by industry veteran Marcos Peigo. According to reports, the transaction values the assets at $300-400M. UOL Diveo will continue to work with Scala to meet and scale its infrastructure needs.
The deal is unlikely to be a one-off type of thing, as Digital Colony says it sees big hyperscale opportunities in the region and expects to make further accretive investments. Scala will therefore serve as a consolidation platform for additional such assets. At the moment, details on Scala's actual asset base are slim. But I'm sure that will change over time.