Digital Edge acquires 2 data centres from Sejong Telecom
Published 3 April 2021
Singapore registered data centre operator Digital Edge has announced that it has acquired two data centres from South Korean telecommunications provider Sejong Telecom.
A data centre in Gangnam, Seoul, and a cable landing station facility in Centum City, Busan will be bought by Digital Edge in an all-cash transaction. Post the acquisition, Digital Edge plans to expand the capacity and improve the energy efficiency of both facilities.
The complete transaction and expansion process is expected to cost over $120 million, the company said. Digital Edge is backed by Stonepeak Infrastructure Partners and has in excess of US$1 billion in committed capital to establish and drive its data centre platform in Asia.
This acquisition will also mark the Singaporean company’s break into the South Korean market. Samuel Lee, CEO of Digital Edge, noted that the company has set aside a capital of $1 billion to build Digital Edge’s presence in Asia, and this move into South Korea is part of the plan.
“Korea is one of the fastest growing markets in Asia with the most advanced digital infrastructure,” he said.
“This transaction provides a great opportunity for multinational companies, as well as Korean businesses, to leverage Digital Edge’s platform to increase their digital footprint in Korea by interconnecting to a rich ecosystem of customers and partners in all key facilities in Seoul and Busan,” Lee added.
Yongsuk Choi, Chief Infrastructure and Data Centre Operations Officer at Digital Edge, said that the company’s decision to acquire two facilities from Sejong Telecom will position the company as “a credible and reliable data center and interconnection service provider in South Korea, with high-quality assets from Seoul to Busan and a large, diversified ecosystem of Korean and multinational businesses.”
“Additionally, it opens key gateways for the rest of Asia through the submarine cable systems in the Busan area,” Choi explained.
Over the years, global cloud, content, and network service providers have expressed a strong desire for more flexible and cost-effective interconnect options in the Korean market. As part of the transaction, Sejong Telecom and Digital Edge have also entered into a long-term strategic partnership to bring innovative products and services to the marketplace to meet the expectations of both domestic and international customers.
The acquisition is expected to close in the second quarter of 2021.