Colocation and data center giant Digital Realty and Ascenty will build two new data centers in Mexico for a large global cloud provider. The two companies didn't identify the cloud provider that will be using the new facilities in Queretaro, Mexico, but did say they had long-term, multi-megawatt agreements in place.
Both of the initial phases for the data centers are slated for delivery next year, and the two new facilities combined are expected to deliver up to 36 megawatts of total IT capacity upon full build out. The new data centers will be interconnected via an underground dark fiber-optic network, providing access to networks, cloud and connectivity providers in a single environment.
Mexico City and Mexico have emerged as strategic technology hubs over the past few years. As in other countries around the world, public cloud availability is a key element for large-scale digital transformations by companies. During the coronavirus pandemic, businesses accelerated their digital transformations by putting workloads and apps in cloud for their work-from-home employees.
"Mexico is emerging as a leading technology hub in Latin America," said Ascenty CEO Chris Torto, in a statement. "Mexico City is one of the largest metropolitan areas in the world, while Mexico is the second-largest country in Latin America with a population of over 120 million and the percentage of population using the internet is growing steadily. The development of our first two facilities in Mexico will enhance our ability to support digital transformation throughout the region with comprehensive data center and connectivity solutions."
In October, Equinix, which is Digital Realty's primary competitor, expanded its footprint in Mexico with its purchase of three data centers for $175 million from Axtel.
Ascenty is a Digital Realty and Brookfield Infrastructure joint venture company that is one of the largest data center providers in Latin America. Ascenty has 22 data centers either in operation or under construction.
In December, Brookfield Infrastructure announced it was buying Cincinnati Bell for $2.6 billion, but ultimately lost out to Macquarie Infrastructure Partners' $2.9 billion offer.