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Empowering Digital Growth with Global-Sustainable Interconnection

Amet Novillo - Equinix
Managing Director Mexico

STORY INLINE POST

Diego Valverde By Diego Valverde | Journalist & Industry Analyst - Mon, 12/09/2024 - 10:10

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Q: What key factors have enabled Equinix to strengthen and consolidate its position within the data center industry in Mexico?
A: As a world leader in digital infrastructure, our strength lies in offering a unique combination of colocation services and data centers backed by our global interconnection network, Equinix Fabric. This approach enables us to connect our customers to whatever digital ecosystem, network provider or cloud they need. Our ability to guarantee neutral and efficient interconnection, tailored to the specific needs of each customer, has been fundamental to consolidate our position in Mexico and globally.

Q: What added value does Equinix offer to its B2B customers in Mexico compared to other digital infrastructure service providers?
A: We provide a global interconnection platform that allows us to connect multiple ecosystems from a single point of access, simplifying operations and maximizing flexibility. We also offer advanced digital services, such as network-as-a-service appliances and managed solutions, that enable companies to customize their technology infrastructure to their needs, ensuring that our customers can respond nimbly to market demands.

Q: What challenges did Equinix face over the past four years and how did they influence your development strategy?
A: Demand for digital transformation accelerated rapidly within the past four years, driven especially by the pandemic. During that period, the need to work remotely, transact online, and consume digital content increased exponentially. This put significant pressure on interconnection capacity and data center space. In response, we prioritized strategic investments to accelerate the build-out and enablement of critical infrastructure.

In Mexico and Latin America, we adopted an aggressive expansion strategy. Since our entry into the region in 2011, we have invested over US$2 billion. In 2020, at the height of the pandemic, we set up offices in Mexico to meet the growing demand for interconnection. We now operate in five countries and seven cities in the region, reflecting our commitment to strategic growth in key markets.

Q: What role did the company's alliances or partnerships play in achieving this position?
A: Our strategic alliances with global leaders such as Google, Amazon, Microsoft, HP, Cisco, Oracle, as well as our upcoming collaboration with NVIDIA, have been essential in providing our customers with access to robust infrastructure and cutting-edge solutions. These collaborations have not only boosted our capabilities, but have also allowed us to integrate specialized services in security, management, and digital solutions through local partnerships.

Q: How does Equinix tailor its services to the specific needs of B2B customers in Mexico?
A: We work closely with our B2B customers in Mexico through a collaborative approach that combines our global and local partnerships with innovative technologies. This allows us to offer customized solutions that integrate data infrastructure, cloud services, and digital management. By partnering with local and global specialists, we provide comprehensive and adaptable support that responds to the specific demands of the Mexican market, strengthening connectivity and optimizing business performance.

Q: What specific challenges do Mexican companies face when adopting digital infrastructure solutions and how is Equinix helping to turn those challenges into opportunities?
A: One of the biggest challenges Mexican companies face when adopting digital infrastructure solutions is integrating advanced technologies, such as AI, into their existing operations. According to our Global Technology Trends Study 2023, 95% of leaders in Mexico plan to use AI in their operations, 92% in cybersecurity, and 89% in R&D. However, 24% of decision makers express uncertainty about how to incorporate these technologies into their infrastructure. We address this challenge by offering scalable and flexible platforms that allow companies to implement these solutions efficiently, maximizing the use of their technological resources.

Another significant challenge is the lack of technical skills and appropriate partners to customize these implementations. Our study indicates that 23% of companies identify gaps in their teams that hinder the effective use of these technologies. In response, we provide access to a robust interconnection ecosystem that incorporates key technology partners and vendors, not only accelerating digital transformation, but also enabling companies to access new markets, reduce operating costs, and expand revenue.

Q: What are the most significant trends you are seeing in the data center and digital infrastructure industry in Mexico?
A: We are seeing accelerated growth in sectors such as content and cloud services. On the one hand, content generation and distribution, both by end users and providers, has become a key vertical. The rise of AI is increasing demand for high-performance processing, positioning data centers as critical enablers for this sector.

Sectors such as finance, retail, and healthcare are undergoing an accelerated transformation. In finance, interconnection and low latency are essential to meet the demands of an ecosystem that requires agility and precision. Retail, meanwhile, is adopting technological solutions to optimize processes such as advertising, transactions, and data analysis. Finally, in healthcare, private hospitals are looking to modernize through automation, improving the patient experience. 

Q: How is Equinix leveraging its portfolio to meet the needs of multiple industries in Mexico?
A: Our portfolio is characterized by its specialization and clear focus on data center services and digital solutions. We offer everything from single rack units to large-scale solutions, fully adapting to the customer's needs. We complement this with key services such as internet connectivity, interconnections with public and private clouds, and network devices as a service. Our strategy is based on precision: we do not offer an extensive range of products, but a specific portfolio designed to solve critical needs, either directly with customers or through a strong network of partners and integrators.

Q: What sustainability initiatives is Equinix taking to ensure its operations are environmentally responsible?
A: Equinix is committed to achieving 100% renewable energy consumption by 2030, as we have been sourcing 92% of our energy from renewable sources since 2023. To maximize energy efficiency, we use technologies such as "hot and cold aisles" in our data centers and constantly monitor our power usage effectiveness (PUE). We also have a research center dedicated to developing innovations to optimize resource management in our operations.

We have implemented heat reuse systems in our centers in Helsinki and Paris, reusing the heat generated by our data centers in local heating networks. We have also introduced liquid cooling capabilities in over 100 data centers globally, including Mexico, which has significantly reduced our carbon footprint. These actions are complemented by the use of solar panels and collaboration with green energy providers, strengthening our comprehensive strategy of sustainability and environmental responsibility.

Q: What are Equinix's plans or objectives in Mexico for the coming year, especially in terms of brand strengthening and operations expansion?
A: Next year we will continue to focus on expanding and strengthening our brand. We are investing in expanding our operations. For example, we are building a second data center in Monterrey, which represents an initial investment of US$79 million in its first phase. We have also completed the third phase of the expansion of our facilities in Queretaro, with an investment of US$57 million, which will enable us to increase our operating capacity by almost 4,000m2.

Q: What strategies are you implementing to achieve these objectives, and what regions are you prioritizing?
A: To achieve these objectives, we are focusing on strengthening our interconnected infrastructure globally. The implementation of our global interconnection network, Equinix Fabric, is key to our goals. We have already connected the Monterrey 1 data center and will soon connect Monterrey 2, which will enable us to expand our global presence and continue to expand our capabilities in Mexico. Our focus for the coming year will be mainly in the north of the country, and in key sectors such as finance, retail, and industry in general.

Photo by:   Mexico Business

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