Equinix, Inc. has announced its planned expansion into Chile and Peru through its intended purchase of four data centres from Empresa Nacional De Telecomunicaciones S.A. (Entel), a leading Chilean telecommunications provider, for approximately US$705 million.
The acquisition is expected to close in Q2 of 2022 and includes three data centres in Chile, with the potential of an additional data centre site in Peru.
Chile is the fourth-largest economy in South America, with the highest GDP per capita in the region. Santiago is emerging as a technology hub in South America, serving both regional cloud and content demand as well as local enterprises. According to IDC, enterprise edge spending in Latin America is expected to reach $8.573 billion by 2024, and in Chile, it is anticipated to grow by double digits in the same period. Furthermore, between 2020 and 2024, IDC anticipates that cloud spending in Chile will increase 34.6 per cent.
When closed, the purchase will expand Equinix’s coverage in this strategic market, solidifying its leadership as the top regional provider of digital infrastructure services. With three data centre sites in Santiago, Chile, the transaction also includes significant expansion capacity for future growth in Santiago, allowing Equinix to support both immediate and future growth in the region. Under the terms of the agreement, Equinix and Entel have agreed to form a strategic partnership to enable enterprises in Chile and Peru to leverage hybrid multi-cloud solutions to accelerate their digital transformation.
Charles Meyers, President and CEO, Equinix, said: “Latin America holds enormous potential, and our commitment to the region has exponentially grown since we entered back in 2011. Chilean, Peruvian and multinational companies are thirsting for the digital infrastructure required to thrive in today’s economy; with today’s expansion, we are broadening digital access and accelerating digital transformation across Latin America, while supporting growth in a responsible and sustainable manner.”