I Squared Capital, an infrastructure private equity firm, via its ISQ Global Infrastructure Fund III and ISQ Growth Markets Infrastructure Fund, today announced that it has agreed to acquire KIO Networks, a data center operator in Mexico and Central America from Tresalia Capital, the Mexico City-based family office for María Asunción Aramburuzabala Larregui, a Mexican billionaire. According to press reports from Bloomberg, KIO Networks could be valued at ~$1bn through this transaction with I Squared.
KIO Networks – Overview
KIO Networks is the largest data center operator in Mexico, with a regional presence in Central America and the Caribbean. Specifically, KIO Networks operates 40 data centers in Mexico, Panama, Guatemala, the Dominican Republic, and Spain, with 20+ megawatts of operational power capacity. Additionally, the company notes that there is significant expansion potential at its data centers, particularly in Mexico City and Querétaro.
Overall, KIO Networks provides carrier-neutral colocation services for hyperscale, telecom, technology, financial, corporate, and government customers.
Core Data Center Campuses
KIO Networks operates 11 core campuses, which together comprise 29 data centers. Below is a geographic breakdown of these core data center facilities:
- Mexico: located in the cities of Mexico City, Querétaro, and Monterrey. KIO Networks’ Mexican footprint includes MEX|1 (4 data centers), MEX|2 (2 data centers), MEX|3 (1 data center), MEX|4 (3 data centers), MEX|5 (8 data centers), QRO|1 (5 data centers), MTY|1 (1 data center)
- Central America, Caribbean: PA|1 (Panama – 2 data centers), GT|1 (Guatemala – 1 data center), DO|1 (Dominican Republic – 1 data center)
- Europe: ES|1 (Spain – 1 data center)
KIO Networks operates 11 edge facilities in Mexico. These data centers are distributed throughout the country in the secondary locations of Puebla, San Luis Potosí, Mérida (1 & 2), Cuernavaca, Guadalajara, Veracruz, Xalapa, Villahermosa, Tuxtla Gutiérrez, and Hermosillo.
KIO Networks facilitates connectivity to a range of national (e.g., Mexico) and international carriers at its data centers, providing its customers with different connectivity options. Specifically, these carriers include:
- Mexico: Axtel/Alestra, Bestel, C3ntro, Marcatel, Maxcom, MCM (Megacable), redIT (American Tower), Telmex, Totalplay, and Transtelco (Neutrona)
- International: AT&T, Cogent, GTT, Lumen Technologies, PCCW Global, Telefónica, Telia, and Verizon
KIO Networks also offers managed services for cloud, cybersecurity, and business applications.
I Squared Capital – Overview
I Squared Capital manages investments in the infrastructure sub-sectors of utilities, digital, energy, transport, and social. Indeed, the firm’s approach is global with investments in North America, Europe, Latin America, and Asia. I Squared has committed $3bn+ (also includes co-investments) to digital infrastructure, across six investments globally. Specifically, the firm’s digital infrastructure portfolio holds assets including cellular sites, data centers, and fiber networks.
I Squared, via its ISQ infrastructure funds, intends to use KIO Networks to anchor the development of its digital infrastructure strategy in Mexico and the rest of Latin America.