Equinix buys Istanbul data centre in $93m CAPEX
Company envisions a site which at full capacity will add 130,000 sqf to its portfolio of more than 180 properties worldwide.
Equinix (Nasdaq: EQIX) has acquired Zenium’s Istanbul data centre in a $93m deal to further enhance the company’s footprint in Europe and bridge demand between the old continent and Asia.
The all cash transaction, officialised on October 6, was only made public today. The data centre in Turkey’s most populous city will be named Equinix IS2.
The facility produces today annual revenues around $2.5m, and Equinix sees the site as a potential data centre campus of up to 130,000 sqf and 22MW of critical load. However, the site currently only boosts just over 16,000 sqf of colocation and 10 networks, including Turk Telecom.
Nevertheless, according to the Global Interconnection Index, which measures and forecasts the growth of Interconnection Bandwidth, Europe is expected to grow 44% per annum to reach 1451 Tbps of installed capacity by 2020.
Europe’s growth will be driven by a number of factors, including data sovereignty and the need for European businesses to exchange information with other businesses in-region.
Based on these figures it is expected that Equinix will carry out expansion at the IS2 site in the coming years.
According to the International Monetary Fund, Turkey has the world’s 17th-largest nominal GDP and a population of approximately 80 million people, furthering the possible expansion plans for the facility.
Slaughter and May acted as lead external legal advisor for Equinix. RBC Capital Markets served as Zenium’s financial advisor.
Eric Schwartz, president, EMEA, Equinix, said: “The dynamic evolution of digital technology is disrupting how business is done across all industries, forcing companies to invent new, information-centric business models. These business models rely on interconnection and distributed IT architecture.
“As the Turkish economy continues to grow, Istanbul will become an increasingly important hub for connectivity and technology infrastructure, and this new campus will help Equinix meet this demand from customers across our global customer base.”
Franek Sodzawiczny, CEO & founder, Zenium, also commented: “We congratulate Equinix with this transaction, which enables us to focus on our business in Western Europe.
“The technological infrastructure in Turkey is advancing quickly, as businesses are requiring more interconnection to compete. This is a great opportunity and Equinix is now well positioned to drive this exciting data centre business forward.”
Equinix currently operates more than 180 IBX data centres in 44 markets worldwide and has recently acquired Itconic, in a $259m transaction that has placed the operator in new markets in Portugal and Spain.
In MEA alone, the company has 67 International Business Exchange (IBX) data centres across Europe and the Middle East, located in 18 metropolitan areas across 13 countries.