A focus on Scala
We take a closer look at Digital Colony’s acquisition of Scala Data Centers whilst exploring the two companies’ outlook and potential.
Back in April Digital Colony, digital infrastructure investment firm, acquired Scala Data Centers which is a Sao Paulo based company providing cutting-edge data services to the Latin American sector. Following the move, Marcos Peigo has become CEO of the company as he aims to move the company forward to support the growth of cloud and IT outsourcing across Latin America whilst meeting global customer demand and expectations.
The value of the acquisition is worth between £300 and £400mn and is set to be one of the largest companies of its kind in Brazil. The transaction was partly funded by Digital Colony’s inaugural fund.
About Digital Colony
Digital Colony Management, LLC is the digital investment arm of Colony Capital and focuses on enabling the next generation of mobile and internet infrastructure. Its extensive team combines knowledge with leading operator of digital infrastructure businesses, Digital Bridge, along with Colony Capital which is a leading a real estate investment management firm.
A considerable rise in mobile data, video consumption and cloud assets has sparked a much greater need for digital infrastructure solutions such as hyperscale data centres across the planet. Big data analytics, IT outsourcing and more emerging technology trends has enabled Digital Colony to continue its continued development and investment in these areas. It states: “As the rest of the world catches up to the rapid growth of mobile data consumption in the US, we are identifying and pursuing exciting investment opportunities around the world.”
Overall, the company believes “today’s market conditions present a unique opportunity to invest in mobile and internet infrastructure”.
Digital Bridge and Digital Colony have invested in companies all around the world who are providing some of the most cutting edge digital infrastructure to the masses. These include Mexico Tower Partners, ExteNet Systems, Vantage Data Centers and more.
About Scala Data Centers
Headquartered in Sao Paulo, Brazil’s largest city. Scala’s aim is to meet and exceed the growing demand for computing power across Latin America. Scala announced its latest acquisition on April 23rd, taking hold of premium data centre assets from Brazil-based UOL Diveo.
Scala aims to continue to expand at a fast pace through developments, strategic partnerships and acquisitions in the Latin America region. These will help support the continued demand for data centre capacity of its hyperscalers, cloud providers and top enterprise customers.
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.