Equinix has announced plans to acquire three data centers in the Philippines from Total Information Management (TIM), marking its entry into the Filipino market. This venture aligns with the company’s recent expansions in Malaysia and Indonesia and aims to support businesses in leveraging digital opportunities in Southeast Asia.
The all-cash transaction is expected to close in the second half of 2024, pending customary regulatory approvals. The acquisition is valued at approximately 15 times the projected EBITDA at full capacity.
Equinix plans to utilize these advanced data centers to meet the digital needs of local and international businesses in the Philippines. Current TIM customers, including network and financial services companies, will gain access to Equinix’s extensive global networks. This ecosystem comprises over 10,000 companies, including 2,000 networks and 3,000 cloud and IT service providers, facilitating enhanced interconnectivity and data exchange within a vast network of partners and customers.
Jeremy Deutsch, President of Equinix Asia-Pacific, commented, “We are thrilled to announce our expansion into the c, a vibrant and rapidly expanding digital economy that presents immense opportunities for our valued customers and partners. This strategic acquisition, combined with our recent expansions in Malaysia and Indonesia, as well as the awarded data center capacity in Singapore, will greatly enhance our footprint in the region.” He added, “This expanded digital infrastructure will also enable our customers to thrive and embrace digital transformation, harnessing the potential of emerging technologies like private AI.”
The digital economy of Southeast Asia was valued at USD $218 billion in gross merchandise value in 2023. The Philippines alone is projected to see its digital economy grow to USD $35 billion by 2025, reflecting a compound annual growth rate of 20%. Various factors are driving the demand for digital infrastructure services in the country, including a highly engaged digital population, increased e-commerce adoption, and government digitization initiatives such as the E-Government Masterplan 2022 and the Digi-Ed 2028 program.
Jose Mari M. Antunez, Chairman of TIM, emphasized the synergy, “Equinix’s strong reputation and expertise in the industry make them the ideal partner to take our data center business to new heights. While TIM will continue to remain as a system integrator, helping our customers through their digital transformation strategies, this deal will bring immense benefits to our customers.” He also highlighted, “Equinix’s global platform and extensive network will provide enhanced connectivity, scalability, and access to a thriving ecosystem of partners. We are confident that Equinix’s commitment to excellence and customer-centric approach will ensure a seamless transition and deliver unparalleled value to our customers.”
The three data centers being acquired are carrier-neutral and feature more than 1,000 cabinets of capacity, along with land for future expansion. These centers will support digital transformation efforts of both local and global customers looking to enter the Filipino market.
As part of its broader investment strategy in the Asia-Pacific region, Equinix plans to expand into new markets, including Jakarta, Indonesia (JK1) and Chennai, India (CN1), later this year. The company will also increase its footprint in Singapore, supported by government capacity allocations. These expansions aim to bolster Equinix’s leadership in the region and facilitate the digital transformation of its customers entering new markets.
