Equinix to Acquire 3 Data Centers in the Philippines

Equinix has disclosed its intention to acquire three data centers from Total Information Management (TIM) to penetrate the Philippine market. This strategic move entails an all-cash transaction estimated to be worth 15 times the projected EBITDA at maximum utilization. The transaction is expected to be finalized in the latter half of 2024, subject to the fulfillment of the standard closing conditions.

Three high-performance data centers are included in the acquisition, substantially increasing Equinix's ability to satisfy the digital requirements of domestic and international businesses in the Philippines. Enterprises, cloud and IT service providers, and network service providers will be able to leverage Platform Equinix for private and secure data exchange within a robust ecosystem of business partners and consumers as a result of these data centers.

Equinix's extensive global ecosystem will enable current TIM customers, such as network and financial services companies, to interact with over 10,000 companies worldwide, including over 2,000 networks and 3,000 cloud and IT service providers.

The digital economy in the Philippines is experiencing significant development, with a compound annual growth rate (CAGR) of 20%. This acquisition follows Equinix's recent expansions in Indonesia and Malaysia to assist businesses in capitalizing on the emerging digital opportunities in Southeast Asia. The digital economy of Southeast Asia attained $218 billion in gross merchandise value (GMV) in 2023. The Philippines is anticipated to expand its digital economy to $35 billion by 2025.

In the Philippines, the demand for digital infrastructure services is driven by various factors. These encompass a digital population that is highly engaged, the increasing adoption of e-commerce, and a variety of government initiatives, including the Digi-Ed 2028 program and the E-Government Masterplan 2022, which are designed to encourage digitization across the country.

Jeremy Deutsch, President of Asia-Pacific at Equinix, expressed his enthusiasm about the expansion. “We are thrilled to announce our expansion into the Philippines, a vibrant and rapidly expanding digital economy that presents immense opportunities for our valued customers and partners. This strategic acquisition, combined with our recent expansions in Malaysia and Indonesia and the awarded data center capacity in Singapore, will greatly enhance our footprint in the region. This expanded digital infrastructure will also enable our customers to thrive and embrace digital transformation, harnessing the potential of emerging technologies like private AI. This acquisition perfectly aligns with our vision to extend our leadership in the Asia-Pacific region while driving the acceleration of the digital economy,” he said.

Jose Mari M. Antunez, Chairman of Total Information Management, commented on the partnership: “Equinix's strong reputation and industry expertise render them the ideal partner to elevate our data center business to new heights. Although TIM will persist in its role as a system integrator, assisting our clients in the implementation of their digital transformation strategies, this agreement will render substantial advantages to our clients. Equinix's global platform and extensive network will offer improved connectivity, scalability, and access to a flourishing ecosystem of partners. We are certain that Equinix's dedication to excellence and customer-centricity will guarantee a smooth transition and provide our customers with unparalleled value.”

Equinix is also expanding its presence in other top markets and the Philippines. Later this year, the organization intends to establish new data centers in Chennai, India (CN1) and Jakarta, Indonesia (JK1). Additionally, Equinix will expand its operations in Singapore with the assistance of capacity allocation from the Singaporean government.

Equinix's platform encompasses 260 data centers in 33 nations and 71 metropolitan areas worldwide. Equinix has 56 data centers located in 14 major metropolitan areas of the Asia-Pacific region, with recent additions in Kuala Lumpur (KL1) and Johor (JH1) in Malaysia.

Equinix's ongoing expansions testify to its dedication to improving digital infrastructure in the Asia-Pacific region, thereby establishing itself as a critical participant in the rapidly evolving digital economy.