Equinix (Nasdaq: EQIX) is furthering its data center reach into the Brazil market as ALOG Data Centers gets ready to build a new International Business Exchange (IBX) data center in Rio de Janeiro.
Set to be completed in Q1 2013, the first phase is expected to cost $20 million in expansion capital with space for 320 cabinets initially. When all phases are complete, the total capacity of the data center will support 1,170 cabinets.
In addition, Equinix said that ALOG will begin building phase two of its SP2 data center in São Paulo, which is expected to be available in early 2013. When SP2 phase two is completed, Equinix and ALOG will have space for 350 cabinets and is expected to cost $14 million in expansion capital.
Equinix enhanced its presence in Brazil's data center market when it and private equity partner Riverwood Capital acquired a controlling stake in ALOG last year.
Through its investment in ALOG, Equinix can respond to its multinational customers, particularly those in the financial services segment which are rapidly expanding their presence in the Latin American market, with a host of colocation, interconnection and managed hosting services.
"With the expansions in São Paulo and Rio de Janeiro, we are in a strong position to support increasing demand for Platform Equinix from key global customers looking to expand in the region," said Charles Meyers, president of the Americas for Equinix, in a release announcing the expansion.
Meyers' thesis about the Latin American market is timely. New figures from the Brazilian government forecast that GDP will grow "three to three-and-a-half percent and expects six percent growth in the IT sector in 2012."
- see the release
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