Infotech Lead America: Equinix is set to sell 16 data centers in the United States to an investment group consisting of 365 Main, Crosslink Capital and Housatonic Partners for approximately $75 million.
365 Main will own and manage the 16 data centers, led by industry veterans Chris Dolan, CEO, and Jamie McGrath, COO.
“As we sharpen our focus on developing business ecosystems, we are prioritizing the largest global markets required by our targeted customers and applications that are driving growth across Platform Equinix,” said Charles Meyers, president of the Americas for Equinix.
“We believe the divestiture of these assets will allow us to focus our capital and energy on our most productive data centers and will ensure that customers at these sites will be supported by an experienced data center operator that will continue to invest in these locations,” Meyers added.
“We have been continuously evaluating the data center market and believe the opportunity to enter 16 U.S. markets creates a solid platform for 365 Main,” said Chris Dolan, president and founding partner, 365 Main.
Nine of the 16 data centers are in markets Equinix will exit with the close of the sale. Those markets include Buffalo, Cleveland, Detroit, Indianapolis, Nashville, Phoenix, Pittsburg, St. Louis and Tampa. The remaining seven data centers are in markets where Equinix will retain a presence and currently has sufficient capacity to meet customer demand.
The 16 sites represent approximately 280,000 total gross square feet of data center space. The Equinix customers deployed in the 16 data centers will be transferred to 365 Main as part of the transaction. Additionally, key employees who have experience with these sites and their customers will be joining 365 Main to facilitate a seamless transition and ongoing support for customers.
Equinix estimates that the 16 data centers generate less than two percent of the company’s annual revenues.
The company, which has recently strengthened its presence in Hong Kong, will open the Rio de Janeiro center in the first quarter of 2013.