Global data center provider CyrusOne have entered into a strategic partnership with server farm specialist ODATA Brasil. As per the terms of the deal, CyrusOne will be expanding their data center presence in the LATAM (Latin America) market with a USD 12 million investment in ODATA Brasil and Columbia in exchange of a 10% stake in the company.
According to CyrusOne, LATAM is witnessing massive growth of cloud zones and regions with the adoption of cloud technology. They say that enterprises are gradually undergoing a mindset change when it comes to deploying business-critical data on the cloud.
By partnering with ODATA Brasil, CyrusOne believe that they will quickly gain entrance into an evolving cloud market in LATAM to meet the myriad cloud needs of customers. They say that with a 10% equity in the data center company, CyrusOne will be able to leverage ODATA’s growing network as well as facilities such as dark fibre.
Speaking about the alliance, Gary Wojtaszek, President and Chief Executive Officer of CyrusOne, commented:
We are excited to partner with Patria and the ODATA team as they scale their business throughout Latin America. To date, Brazil and other LATAM markets have largely been served by a limited number of providers, leading to few options and high costs for our customers.
The combination of our collective resources will form the basis of a powerful platform from which we can better serve these customers’ increasingly global needs.
ODATA say that they have entered into a commercial agreement covering leasing activity with CyrusOne customers in the ODATA portfolio. Excited about this deal, Ricardo Alario, CEO of ODATA, commented:
We are thrilled with the investment and endorsement by CyrusOne, and we look forward to working with their team as we scale the business.
CyrusOne is a leader and innovator in the data center industry, and their design and construction expertise will be valuable in delivering timely, cost-efficient builds to hyperscale companies.
In closing, the data center provider added that they are looking to close the mandatory requirements of the deal as soon as possible. It looks like major cloud and data center providers are readying themselves to boost their presence in the LATAM market just as Google did with USD 140 million investment at their Chile hub a month ago.