Equinix, Inc., a global leader in digital infrastructure, has announced its entry into the Philippine market through the acquisition of three data centers from Total Information Management (TIM), a prominent technology solutions provider. The strategic move follows Equinix’s recent expansions in Malaysia and Indonesia, aiming to support businesses in tapping into the growing digital market of Southeast Asia.
The transaction, valued at approximately 15 times the projected EBITDA at full utilization, is expected to close in the second half of 2024, pending standard closing conditions.
The newly acquired data centers, known for their high-performance and interconnection capabilities, will significantly enhance Equinix’s ability to meet the digital needs of both local and international businesses in the Philippines. These facilities will support a wide range of enterprises, including cloud and IT service providers, and network service companies, enabling them to leverage Platform Equinix® for secure and private data exchange within a vibrant network of over 10,000 business partners and customers.
TIM’s existing clients, including network and financial services companies, will gain access to Equinix’s global ecosystem of over 10,000 companies, comprising more than 2,000 networks and 3,000 cloud and IT service providers.
The three carrier-neutral and interconnection-rich data centers include over 1,000 cabinets of capacity and land for future expansion. These facilities will support the digital transformation of customers looking to expand their operations in the Philippines.
Southeast Asia’s digital economy reached a gross merchandise value (GMV) of $218 billion in 2023, with the Philippines’ digital economy projected to grow to $35 billion by 2025, at a compound annual growth rate (CAGR) of 20%. The demand for digital infrastructure services in the Philippines is rising, driven by a highly engaged digital population, booming e-commerce, and various government initiatives like the E-Government Masterplan 2022 and the Digi-Ed 2028 program.
As part of its ambitious investment plans in the Asia-Pacific region, Equinix will also expand into new markets including Jakarta, Indonesia (JK1), and Chennai, India (CN1) later this year. The company will further expand its footprint in Singapore with government-allocated capacity. These expansions will reinforce Equinix’s leadership in the region and support the digital transformation of customers entering new markets.
Currently, Platform Equinix spans 260 data centers across 71 metros and 33 countries worldwide. In the Asia-Pacific region, Equinix operates 56 data centers in 14 key metros across Australia, China, Hong Kong, India, Japan, Korea, Malaysia, and Singapore, including the recently opened facilities in Johor (JH1) and Kuala Lumpur (KL1) in Malaysia.
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