Equinix Sells Off Data Centers

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Equinix Sells Off Data Centers

"Equinix today announced plans to sell 16 International Business Exchange™ (IBX®) data centers located throughout the United States to an investment group consisting of 365 Main, Crosslink Capital and Housatonic Partners in a transaction valued at approximately $75 million. After the close of the transaction, 365 Main will own and manage the 16 data centers, led by industry veterans Chris Dolan, CEO, and Jamie McGrath, COO."

"Nine of the 16 data centers are in markets Equinix will exit with the close of the sale. Those markets include Buffalo, Cleveland, Detroit, Indianapolis, Nashville, Phoenix, Pittsburg, St. Louis and Tampa. The remaining 7 data centers are in markets where Equinix will retain a presence and currently has sufficient capacity to meet customer demand. These sites include CH6 (427 La Salle, Chicago), DC9 (11513-19 Sunset Hills Road, Reston, VA), DA5 (4101 Bryan St., Dallas), NY10 (65 Broadway, New York), PH2 (3701 Market St., Philadelphia), SE1 (1914 Third Ave., Seattle), and SV7 (534 Stockton Ave., San Jose)." Those 16 sites represent approximately 280,000 total gross square feet of data center space - all for just $75M - including the customers. Good deal for 365 Main.

Equinix's revenue was up from $395M last quarter to $466M this quarter. No idea how much revenue is toed to these 16 centers. "Equinix estimates that the 16 data centers generate less than two percent of the company's annual revenues" which are estimated at $1.9B this year (less than $38M so 2x rev).

Rob Powell points out that 365 Main sold its original 5 data centers to Digital Realty Trust in 2010, but with new backers are getting back in the game.

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