Digital Colony expands Latam footprint with data centre acquisition in Brazil
Colony Capital, the investment division of Digital Colony Management is set to purchase data centre assets from Brazil’s Grupo Folha.
According to Bloomberg, the assets are to be purchased from the UOL Diveo arm of Grupo Folha and will create a new data centre platform in São Paulo.
Marc Ganzi, CEO of Digital Colony confirms that the new data platform, Scala Data Centers, is to be managed by former IBM executive Marcos Peigo.
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Valued to be worth $300- $400 million, Ganzi says that Scala Data Centers will be one of the largest of its kind in Brazil and the company will attempt to grow the new facility through acquisitions.
“The situation in Latin America is no different to the situation here — companies are asking employees to work from home and in addition to that, cloud growth in Latin America is significant and we have a huge opportunity to deploy capital behind some of our best relationships in the region,” said Ganzi in an interview.
Speaking to Bloomberg, Ganzi confirmed that the transaction will be funded partly with equity from Digital Colony’s inaugural fund and follows Digital Colony’s purchase of Highline do Brasil II Infraestrutura de Telecomunicações SA in December 2019.
At the time it was agreed that Highline CEO Fernando Viotti and his executive team will continue to lead the company.
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