Equinix Completes Acquisition of Brazilian Data Center Provider ALOG

Equinix Completes Acquisition of Brazilian Data Center Provider ALOG

Inside the SP2 data center in São Paulo , Brazil

A busy summer for Equinix in Brazil (thank you, FIFA World Cup) keeps rolling ahead with twin announcements that highlight our continued growth in the country and commitment to the region.

First, we’ve completed our acquisition of ALOG Data Center of Brazil S.A., giving us four new data centers and making Equinix the only data center provider to offer Tier III services in both Rio de Janeiro and São Paulo, the country’s largest markets.

Second, the third phase in ALOG’s SP2 data center in São Paulo is finished a month ahead of schedule, which reflects heavy demand from enterprise and cloud computing customers.

Karl Strohmeyer, Equinix’s president of the Americas, said ALOG has done a great job taking advantage of its strength in Brazil, particularly in cloud and mobile technology, and integrating it into Equinix’s global footprint.

“ALOG’s strong position in Brazil and complementary business model provided Equinix the opportunity to establish a presence in an important emerging market and meet growing demand for data center services in Latin America,” Strohmeyer said.

An April 2014 report from the World Bank ranks Brazil the world’s seventh-largest economy and second-largest IT market, behind China, among emerging markets.

Equinix entered the Brazilian market in 2011, when we partnered with Riverwood Capital to acquire a majority stake in ALOG, with Equinix holding 53% ownership of the company. Equinix has now agreed to purchase the rest of the company and will integrate it into Equinix.

ALOG derives its name from the Italian word aloggiare,” which means to host, to shelter. It has about 1,500 customers combined in its Rio de Janeiro and São Paulo data centers. The new addition at SP2 adds space for 600 additional cabinets, bringing the facility’s cabinet total to 1,270.

The SP2 facility is located in the São Paulo suburb of Tambore’ and is home to two of the most frequently used online services in Brazil, the search engine Apontador and an API geo-localization platform, Maplink. Both services have reduced IT infrastructure costs by 30% since colocating with ALOG.

SP2 was also designed with a heavy emphasis on sustainability and is the first data center in Brazil to use external cold air for cooling. The system pumps cold air from the outside when the temperature drops below 62.6 degrees Fahrenheit.

SP2 is located in a market with tremendous growth potential, according to a 451 Research report. The report said São Paulo has more than half of the multitenant data center (MTCD) capacity in Brazil, making it the country’s largest MTCD market. But the market is still relatively small, considering the size of the city’s economy. That’s consistent with the heavy demand for colocation that ALOG has seen in São Paulo.

“We believe that fast growth will continue as more companies realize the cost savings of leveraging cloud-based IT solutions and discover new business opportunities by interconnecting with the 4,500 companies across Platform Equinix,” said ALOG president Eduardo Carvalho.

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