Deals
Digital Colony Expands in LatAm With Brazilian Data Center Deal
- Company is spending $300 million to $400 million on assets
- Deal comes as demand for data increases amid virus lockdown
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Colony Capital Inc. investment arm Digital Colony Management is expanding in Latin America with the purchase of data center assets from Brazil’s Grupo Folha, at a time when stay-at-home orders around the world are boosting demand for digital infrastructure.
The assets, from the UOL Diveo unit of Folha, will form a new Sao Paulo-based data center platform led by former IBM executive Marcos Peigo, said Digital Colony Chief Executive Officer Marc Ganzi, who is due to take on the top job at Los Angeles-based Colony Capital in July. The new platform, Scala Data Centers, will be one of the largest of its kind in Brazil and will seek to grow through acquisitions, Ganzi said.