Digital Colony forms Scala to serve LATAM hyperscale data center requirements

May 8, 2020
The new company will have headquarters in Sao Paulo, Brazil.

Digital Colony Management, LLC, the digital infrastructure investment arm of Colony Capital, Inc. (NYSE: CLNY), has agreed to acquire data center assets from UOL Diveo for an undisclosed sum. Upon closing, Digital Colony says it will rename the assets Scala Data Centers S/A.

The new company will have headquarters in Sao Paulo, Brazil, and be led by Marcos Peigo. Peigo, currently an operating partner at Digital Colony, will carry the title of CEO at Scala. He formerly was executive director of UOL Diveo and most recently vice president of value creation for IBM Latin America.

Digital Colony says that Brazil is an attractive and underserved market for outsourced data centers, with demand for such services expected to grow. The company believes the region presents multibillion-dollar potential “through further accretive investment opportunities,” as stated by a Digital Colony press release.

Scala represents Digital Colony’s second investment in Brazil and fourth in Latin America. The company acquired Highline do Brasil in 2019, Andean Telecom Partners in 2017, and Mexico Towers Partners in 2013 through its affiliate Digital Bridge.

UOL Diveo, meanwhile, will continue to provide infrastructure services through Scala as well as managed services, multicloud, security, software development, and “digital solutions” through its services company, Compasso UOL.

Jon Mauck, managing director of Digital Colony, commented, “Hyperscale data centers are more in need than ever, and we are confident that Scala, with its high-quality facilities, significant expansion capacity, and seasoned management team will provide a superior hyperscale solution. The business is ideally positioned to support the growth of cloud and IT outsourcing across Latin America and meet the demands of our global customers." 

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