Equinix, Inc. (NASDAQ:EQIX) says it has agreed to buy GPX India, including the two data centers at the heart the India operations of GPX Global Systems, Inc., for $161 million in cash. The deal, expected to close in the first quarter of 2021 subject to customary closing conditions including regulatory approval, will enable the company to extend its Platform Equinix to India.
The two data centers are located on a campus in Mumbai. Combined, they currently offer more than 1,350 cabinets, with room for another 500 cabinets at full buildout. The facilities also will provide more than 90,000 square feet of colocation space when fully built. The GPX India campus also features access to major cloud services, including Amazon Direct Connect, Google Cloud Dedicated Interconnect, and Oracle Cloud Infrastructure FastConnect. GPX India also offers interconnection services and hosts such internet exchanges such as Mumbai IX-DECIX, AMS-IX India, Extreme IX, and Bharat IX.
Equinix says it plans further expansion in the country as well. "India represents the second largest internet user base in the world, with consumption expected to grow with the continued advancement of internet infrastructure, smartphone ownership and the penetration of 4G and 5G. Extending Platform Equinix to India has long been a strategic objective for Equinix and we are excited that the GPX transaction will allow us to capitalize on this market opportunity and meet the needs of our customers as they seek to expand their digital businesses,” commented Charles Meyers, president and CEO of Equinix. “The acquisition of GPX's business in India means we are able to make a giant leap forward in terms of growing our ecosystem in India and gives us a solid foundation for rapid growth and expansion in the country. This acquisition follows the recent announcement of our planned expansion in Canada and is a testament to our continued focus on expanding our global reach as companies continue to view interconnection at the digital edge as a business imperative."
"The data center market in India is expected to exceed $1 billion in 2020 and grow at 12% compound annual growth rate (CAGR) from 2019-2024, the third highest rate in the world. Our forecasts show that the country will become the seventh largest data center market in the world in 2021," added John Dinsdale, chief analyst and research director at Synergy Research Group.
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