In order to expand into the Texas market, Switch acquires Data Foundry, a data center provider for $ 420 million. Following this contract which allows Switch to benefit from an installation in Houston and then another in Austin, it is now in its fifth data center. The company is even considering an addition to the capacity of the two previous cities.
This acquisition is huge for Switch. It should be noted that it builds data centers while offering, in addition, a list of first-rate customers in the world of the cloud. Indeed, in addition to allowing immediate entry into the strategic market in Texas, this agreement adds more than 400 customers, with a limited overlap with the Switch customer database. The latter now has 16 data centers at all of its six sites.
Rob Roy, CEO and even founder of Switch does not fail to add: “The Data Foundry acquisition expands Switch’s national reach and enhances our ability to serve Texas and the mid-US region with low latency connectivity, while delivering geographic diversification and critical revenues.”
According to the directors of Switch, the fact that both companies are focused on building quality data centers as well as engineering played a big role in the acquisition. Thomas Morton even asserts that data centers would be very high quality assets. Also, since they are of a very high design, there is no need to revisit them. Gabe Nacht, CFO, for his part said: “We didn’t do this because of a need, we did it because of an opportunity. “.
It’s also worth taking a look at the Data Foundry portfolio. It actually has three data centers in Austin which have a capacity of 10 MV. It should be noted that these installations admit a addition of 4 additional MV. For the Houston campus, the installed capacity of the data center is up to 4.5 MV. This can be extended to 6 MV.
“Data Foundry is proud to partner with Rob Roy and the Switch team on this transaction which we believe will continue our company’s rich history of innovation in Texas, and result in huge long-term benefits for our customers and all stakeholders in the combined business ”. These are the words of Ron and Carolyn Yokubaitis, co-founders of Data Foundry.