Equinix today announced an agreement to acquire GPX India in an all-cash transaction valued at $161 million. The transaction valuation equates to 15x projected EBITDA of $10.7 million at full utilization in Q1 2021.

GPX India provides Equinix with an entry point into the Mumbai metro, which is India’s largest data center market. Furthermore, it gives Equinix two strong data centers, which are focused on interconnection and considered the best connected in the country. The acquisition comprises more than 1,350 cabinets of power capacity initially. Once fully built-out the data centers will represent 90k sqft and 1,850 cabinets of power capacity. Therefore, Equinix is able to add an additional 500 cabinets of capacity at full build-out.

  • Mumbai 1: 550 cabinets / 2.6 megawatts of power capacity, 30k sqft of space and 100% occupied
  • Mumbai 2 (at full build-out): 1,300 cabinets / 6.0 megawatts of power capacity, 60k sqft of space

The acquisition positions Equinix, with a presence in India of more than 200 international brands and local companies. These customers include the world’s leading cloud service providers (Amazon, Google and Oracle), networks, content delivery networks, all local carriers, 130 internet service providers and four internet exchanges (Mumbai IX-DECIX, AMS-IX India, Extreme IX and Bharat IX).

Indian Market Data:

  • McKinsey forecasts core digital sectors in India, such as IT and digital communication services, to double in size by 2025. This will contribute $355 to 435 billion to GDP
  • IDC projects the cloud services market to grow three-fold to more than $7.1 billion from 2018 to 2022
  • Synergy Research Group anticipates the data center market in India to exceed $1 billion in 2020. Further, it will grow at a 12% compound annual growth rate from 2019 to 2024

Equinix is the largest public data center REIT and has a global footprint of 214 data centers. The company’s data centers represent ~1,200 megawatts / 305k cabinets of power capacity. Further, these data centers are situated across 26 countries around the world, supporting over 9.7k customers.

Mary Zhang covers Data Centers for Dgtl Infra, including Equinix (NASDAQ: EQIX), Digital Realty (NYSE: DLR), CyrusOne, CoreSite Realty, QTS Realty, Switch Inc, Iron Mountain (NYSE: IRM), Cyxtera (NASDAQ: CYXT), and many more. Within Data Centers, Mary focuses on the sub-sectors of hyperscale, enterprise / colocation, cloud service providers, and edge computing. Mary has over 5 years of experience in research and writing for Data Centers.


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