Equinix acquires three data centers to broaden its presence in Philippines

Acquiring three data centers from Total Information Management (TIM), a Philippine-based provider of technology solutions, is how American data center company Equinix plans to enter the Philippine market.

The company said in a statement on Monday that this strategic move intends to assist businesses in expanding and capitalizing on the digital opportunity of the rapidly growing Southeast Asia region, in line with the recently announced expansions in Malaysia and Indonesia.

Subject to customary closing conditions, the all-cash transaction is expected to close in the second half of 2024 and represents a multiple of roughly 15 times the projected earnings before interest, taxes, depreciation, and amortization (EBITDA) at full utilization.

The acquisition of the three high-performance data centers, according to the statement, will give Equinix the capacity to meet the digital needs of domestic and foreign companies operating in the Philippines.

Platform Equinix® enables enterprises, cloud and information technology (IT) service providers, and network service providers worldwide to securely and privately connect and exchange data amongst themselves and with a thriving network of customers and business partners.

Customers of TIM that are currently in service, such as network and financial services firms, will also have access to Equinix’s global networks of over 10,000 businesses, which comprise over 2,000 networks and 3,000 cloud and IT service providers.

It is reported that in 2023, the gross merchandise value (GMV) of Southeast Asia’s digital economy increased to $218 billion.

Specifically, the digital economy of the Philippines is predicted to grow at a compound annual growth rate (CAGR) of 20 percent, reaching $35 billion by 2025.

A highly engaged digital population, a boom in e-commerce adoption, and numerous government initiatives to promote digitization, like the Digi-Ed 2028 program and the E-Government Masterplan 2022, are also driving a surge in demand for digital infrastructure services across the nation.

“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, as well as the awarded data center capacity in Singapore, will greatly enhance our footprint in the region,” said Jeremy Deutsch, President, Asia-Pacific, Equinix.

He claims that by utilizing the potential of cutting-edge technologies like private artificial intelligence (AI), this enhanced digital infrastructure will also help the company’s clients prosper and embrace digital transformation.

“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 added.

TIM Chairman Jose Mari M. Antunez stated that Equinix is the perfect partner to grow their data center business because of their solid industry reputation and depth of knowledge.