The world's largest data center operator is getting even bigger by acquiring Infomart Dallas, one of the largest interconnection hubs in the U.S., for a whopping $800 million.
The Redwood City, Calif.-based data center behemoth will increase the number of owned assets by four and boost recurring revenues by more than 45 percent, according to Karl Strohmeyer, President of the Americas for Equinix.
Equinix is buying all of Dallas-based Infomart's operations and tenants to strengthen Equinix's global platform. "The acquisition of the Infomart will enable existing and new customers to scale their operations with Equinix. This includes a rich portfolio of interconnection options, including on-demand connections to partners and infrastructure in any Equinix location globally through the new capabilities of Equinix Cloud Exchange Fabric," said Strohmeyer, in a statement.
The colocation giant specializes in network-neutral connectivity and recently enhanced the capabilities of its interconnection platform that links around 200 data centers to each other and to services providers that participate in its Equinix Cloud Exchange.
Its ECX Fabric is an on-demand platform enabling customers to discover and connect to any other customer across any Equinix location. Equinix is currently in 48 markets globally.
The Infomart building generated $50 million in revenues in 2017.
The 1.6 million gross-square-foot Infomart headquarters includes multiple diverse fiber entry points and provides significant expansion opportunities to Equinix through the existing underdeveloped capacity, according to Equinix, as well as the potential to develop additional capacity on land adjacent to the Infomart building.
It currently has approximately 45 tenants, including networks, colocation providers, office tenants and Equinix. Equinix is presently the largest tenant accounting for roughly 40 percent of the lease revenues from the facilities.
Equinix expects to close the deal by mid-2018.