Brookfield JV signs agreement to build data center in Santiago

26 April 2019 - 12:00 am UTC

Executives of two data center companies signed an agreement with an undisclosed company to build a facility in Santiago, Chile, according to a 25 April release.

US firm Digital Realty Trust and Brazil’s Ascenty, agreed to develop a 6.3MW facility for the undisclosed global cloud provider under a long-term contract.

There was no indication as to who would finance the construction of the data center.

In September 2018, a joint venture between Digital Realty and Brookfield Infrastructure Partners acquired Brazil-based Ascenty for USD 2.25bn (BRL 9.17bn), which included financing for completion and build out of data centers.

The new data center will be connected via an underground dark fiber network to facilitate interconnection between the data center, critical networks, cloud and connectivity providers in a single, secure environment. 

“This [transaction], in particular, is de-risked by the simultaneous customer signing and our control of land, and ultimately, start of construction,” Digital Realty CEO A. William Stein said during the company’s 25 April 1Q19 earnings conference call. “This is initially going to be… a 6.3MW data center hall in Santiago, but it has a runway for growth too. Could be another 20-plus megawatts with adjacency.”

However, the property may get acquired in the future as more companies, who typically lease space in similar data centers, expand into the Chilean market, he added.

For instance, two days earlier, Internet giant Google and undersea data-transport company SubCom, announced that the installation of the Curie submarine cable had been completed. The cable, which was an initiative of the Google Global Infrastructure Group, connects Valparaíso, Chile to Los Angeles so as to “reach the next billion internet users.”

Digital Realty provides data center cable landing locations for the Curie cable in Los Angeles, a UBS 2018 report shows.

“Our strategy for new market entry is to follow our customers, and Chile is no exception. We are pleased to be supporting the growth of a leading global cloud provider who will be anchoring the first phase of our campus in Santiago,” Stein said.

Construction of the Santiago data center hall commenced immediately upon signing the agreement, and the new facility is scheduled to open in 2020, Digital Realty executive said.

 

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