Aligned Data Centers will acquire Latin American colocation specialist ODATA in a deal that will position Aligned as one of the largest private data center operators in the Americas with a footprint spanning approximately 2 gigawatts across 30 sites at full buildout.
ODATA is among the fastest growing hyperscale data center platforms in Latin America, with data centers across Brazil, Colombia, Mexico, and Chile, with additional sites under development across the region.
Aligned, which is majority owned by funds managed by Macquarie Asset Management, will purchase ODATA from Patria Investments and other selling stakeholders. Aligned will sell a structured minority stake in ODATA to digital infrastructure investment firm SDC Capital Partners, which has experience in the region through an investment in Brazil's Ascenty.
The deal continues the rapid expansion for Aligned, which has recently announced major expansions in Phoenix, Virginia and a new Maryland campus..Aligned CEO Andrew Schaap said the ODATA agreement aligns with its growth strategy.
“The acquisition combines a significant growth runway for expansion and a proven ability to deliver capacity at maximum speed, with regional expertise and partnerships, enhanced fiscal resources, and a resilient supply chain, to deliver a world-class data center platform that meets the demands of our global hyperscale and enterprise customers,” said Schaap.
Aligned is a technology infrastructure developer that solves data center capacity management challenges through innovation in cooling and the supply chain. Aligned’s ability deliver capacity quickly has been a key selling point for large customers, and procuring land has become an especially important strategy for these clients.
ODATA has been among the fastest growing hyperscale data center platforms in Latin America. In addition, ODATA’s commitment to a renewable energy strategy and sustainable design practices is consistent with Aligned’s emphasis on climate responsibility.
Significantly, ODATA is structuring a solution to become a self-producer of renewable energy in Brazil and has a clear path to provide 100% green energy, a key requirement of hyperscale customers, the companies said. ODATA would join Yondr among data center developers seeking to develop green energy projects to support their data center campuses.
“The strategic merger of the ODATA and Aligned platforms will provide customers with a broader base of both available and expansion capacity in key locations across the Americas, as well as additional breadth of experience and depth of knowledge across an expanded team of infrastructure experts," said Ricardo Alário, CEO of ODATA. "We look forward to accelerating the growth of our platform with Aligned and setting a successful cultural course focused on customer and staff centricity, innovation, and operational excellence.”
Demand for wholesale colocation in key LATAM markets is expected to grow considerably over the next 10 years, driven largely by rising hyperscale, cloud service provider, and government entity demands, as well as increased digitalization and connectivity in key Central and South American markets. High-performance computing, IoT, Big Data and AI have increased demand for scalable data center infrastructure capable of supporting growing densities with maximum efficiency.
The transaction is being funded by Aligned alongside a preferred equity investment from funds managed by SDC. The transaction is expected to close in early 2023. Financial terms were not disclosed, although Patria said the combination of the ODATA deal and the sale of a stake in toll road operator Entrevias would yield $1.4 billion for Patria's Infrastructure Fund III. Media reports had suggested ODATA would be valued at $1.8 billion, including debt.