Verizon to sell its Terremark data center?

Verizon has decided to sell its $2.5 billion worth data center in this year, but is still hesitant to make this news official. Analysts suggests that its a very good time for Verizon to get rid of some of its Miami based Terremark data center in strategic point of view, as plenty of companies could benefit from taking them over, given that the price is right.

Terremark data center became a subsidiary of Verizon in 2011 for $1.4 billion and acted as an interconnecting hub between US and Latin America for Verizon’s clod business. Now, the company is planning to sell the facility for $2.5 billion and Equinix, which happens to be world’s largest collocation and interconnection company, seems to be interested.

Digital Realty Trust is also interested in acquiring the server farm, provided the price is lowered to $1.9 billion.

Verizon acquired Terremark with an expectation that it would bring more government clients, as the Culpeper campus is close to Washington, DC and clients will be interested in putting servers closer to the big city.

In 2011, Terremark had 13 data centers and included sites in Dallas, Silicon Valley, Sao Paulo and Amsterdam. Now, the data center has 220 data centers across 23 countries, but the number is still unofficial.

Verizon isn’t clear on selling a portion or the whole of the Terremark data center. But may reveal its intentions by next month end.


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