As part of a $3.6 billion technology deal, the publicly traded Equinix, a global interconnection and data center company, on Monday announced it has completed the purchase of 29 data centers across 15 markets from Verizon Communications. The centers include the NAP of the Americas in downtown Miami and a data center in Doral.
With the deal, Equinix said it will get about 3 million square feet of data center space – including the 750,000-square foot NAP – as it accelerates its strategy of connecting people, locations, clouds and data. It adds three new markets, including Bogotá, and expands operations in a number of metropolitan areas, including South Florida.
Of the 29 sites Redwood City, Calif.-based Equinix is acquiring, 11 were part of Terremark Worldwide, the company founded by Manny Medina that was sold to Verizon in a $2 billion transaction in 2011. Terremark’s facilities included the flagship Miami NAP of the Americas.
The Miami NAP, the fourth-largest Internet exchange point in the U.S., will serve as a strategic hub for Equinix customers servicing Latin America, Equinix said. It hosts the termination points of 15 sub-sea cable systems and more than 120 global networks connecting some 150 countries. Combined with newly acquired data centers in Bogotá and São Paulo, and Equinix's existing presence in Brazil, the NAP center will strategically position Equinix in the growing Latin American market, the company said.
“It literally represents, from a data center and telecommunications standpoint, the gateway to the Caribbean, Central America and South America. It always has since it was built,” Karl Strohmeyer, president, Americas, for Equinix, said in a phone interview. “And what that means is lots of data and cloud communications go in and out of that building. ... It has six floors and two of the floors have not been built out so there is a lot of growth we look forward to unleashing.”
Equinix is no stranger to South Florida. It already runs a data center in Boca Raton and in Miami and has 111 employees in the area. Equinix will be connecting those data centers through fiber to the NAP and the Doral facility, Strohmeyer said. “Miami has always been a key market for us but this significantly accelerates our position in the market as it pertains to South America.”
For its part, Verizon has said the deal is beneficial to the telecom giant because Verizon will exclusively resell Equinix colocation and interconnection services globally, enabling Verizon to pair Equinix's services with Verizon's security, network and advanced communications services. “This transaction aligns with Verizon’s strategy to focus resources in areas that will help drive digital transformation for enterprise customers, while providing world-class service,” Verizon said in a statement when the deal was announced.
Equinix operates 179 data centers across 44 large markets in 22 companies, Strohmeyer said. “We are helping companies of all kinds ... shift to digital. There are over 600 new customers that will be coming with this acquisition and we are going to help those companies take their IT architectures ... and deploy them across the globe.”
Nancy Dahlberg: @ndahlberg