Tuesday, October 17, 2017

Telefonica tops $9.2bn in infrastructure CAPEX in Peru with new data centre

Investment in Peru contrasts with potential IPO in Argentina as the Spanish operator tries to reduce its $54.6bn debt.

Telefonica Peru’s central office in Lima is undergoing an extreme makeover to be transformed into a 64,500 sqf data centre to support the Spanish telecommunications provider’s growth in the country.

The data centre is being built in three phases and will contain 584 IT cabinets with 2600 kW of total IT power.

To carry out the building’s transformation, Telefonica selected Chinese multinational Huawei which will manage and coordinate multiple equipment suppliers and construction subcontractors.

In the first phase of development, which took five months to conclude, the Tier III data centre will house more than 100 cabinets, increasing the space utilisation rate by about 50% compared with the 70 cabinets contained there before redevelopment.

During the installation of eight systems, Huawei managed over 20 subcontractors and a total of over 120 construction workers, working on the site’s power supply, HVAC, and cabling.

According to Telefonica, those interested in using the data centre include enterprises from financial, municipal, mass transit, and other industries.

The company said in a statement: “The completion of the Lince data centre has laid an important foundation for Telefonica’s cloud service development and ICT transformation in Peru.

“In addition, the Lince data centre enables the government, the financial sector, and enterprises to focus on innovation with the help of Telefonica’s reliable and high-quality cloud services, bringing fast and professional services to people in Peru.”

Operational in the country for more than 22 years, the Telefonica Group has also unveiled that it has invested more than $9.2bn in telecommunications infrastructure in Peru over the years.

Elsewhere in South America, Telefonica SA is reportedly working on an IPO for its Argentinian business, according to people familiar with the matter who have spoken to Bloomberg.

The Spanish company is said to be studying the IPO for the unit internally, and is also working on a plan B which could include the sale of shares and/or a network of sharing agreements with other operators.

According to the sources, no decisions have been made. Telefonica has refused to comment on the issue.