Information on the Target

The Zetta Data Center Complex, located in the ZFB Free Trade Zone in Bogotá, Colombia, is a cutting-edge data center developed through a collaboration between TC Latin America Partners and Grupo ZFB. Strategically positioned just 20 minutes from El Dorado International Airport, this facility is designed to support the needs of major digital operators worldwide. Notably, the Zetta Data Center Complex is comprised of four independently constructed phases, each featuring six halls of 190 m² per phase, and boasts Tier III certification from the Uptime Institute for both design and construction.

Diego Gaitán, General Manager of Desarrolladora de Zonas Francas at Grupo ZFB, emphasizes that this sale marks a significant opportunity for Colombia, reinforcing its position as a tech development hub within the global digital landscape. The facility's connectivity, security, skilled workforce, and sustainability features make it highly attractive to leading digital operators globally. Furthermore, this partnership exemplifies confidence in the projects spearheaded by Grupo ZFB.

Industry Overview in Colombia

Colombia's data center industry is experiencing robust growth, driven by increasing demand for digital infrastructure and services. The country is gradually establishing itself as a competitive player in the regional data center market due to its strategic location, which provides easy access to other Latin American countries and markets. This dynamic has led to a surge in investments aimed at enhancing digital infrastructure to meet the burgeoning needs of various sectors including telecommunications, finance, and e-commerce.

Moreover, the Colombian government has been proactive in fostering an accommodating business environment by implementing favorable policies for foreign investments, particularly in technology and digital sectors. This has further strengthened the confidence of investors and operators aiming to tap into the emerging local market. The country’s free trade zones also play a pivotal role in attracting global companies, offering tax incentives and streamlined regulatory frameworks that facilitate operations.

As a result, several international data center operators are eyeing Colombia as a key destination for investment. The combination of local experience, coupled with widespread connectivity options, is creating substantial opportunities for growth in this sector, as companies seek reliable and efficient solutions for data storage and management.

Overall, Colombia is poised to become a significant hub for data centers in Latin America, with continuous advancements in technology and infrastructure solidifying its attractive position for global players in the industry. The presence of certified constructions and experienced operators further enhances the credibility and appeal of the sector in the region.

The Rationale Behind the Deal

The acquisition of the Zetta Data Center Complex by KIO Data Centers marks a strategic expansion into Colombia, bringing KIO's expertise and services into the rapidly growing Colombian market. Santiago Suinaga, CEO of KIO Data Centers, highlights the economic potential and increasing demand for digital solutions in the region as primary motivators for this decision. This initiative will allow KIO to leverage the existing infrastructure and make significant contributions to local digital transformation efforts.

Additionally, the collaboration with TC Latin America Partners and Grupo ZFB reinforces the commitment to developing high-tech projects within Colombia, while providing a solid platform for delivering essential data services. This transaction symbolizes a boost in confidence for investors looking at Colombia as a viable option for future technological and infrastructural investments.

Information About the Investor

TC Latin America Partners is a regional investment platform focused on real estate assets and has made significant investments across Colombia, Peru, Mexico, and Chile since its establishment in 2012. With over $700 million invested, TC Latin America Partners emphasizes a thematic investment strategy centered on risk management and capital preservation.

Grupo ZFB stands out as a leader in the data center market in Colombia, with a strong track record marked by a 100% occupancy rate across five constructed areas over the last decade. Their expertise in operating free trade zones further positions them as a valuable partner in this investment venture, and their experience in creating competitive environments for technology and industrial sectors is crucial for the sustained growth of the data center industry.

View of Dealert

From an investment standpoint, the acquisition of the Zetta Data Center Complex is a promising endeavor for KIO Data Centers. Given the current demand dynamics in Colombia for reliable and efficient digital infrastructure, this investment appears highly strategic. The growth trajectory of the local data center market, combined with supportive government policies and a favorable operational environment, makes this transaction likely to deliver strong returns over the medium to long term.

Additionally, KIO's established experience and success in other markets, paired with the comprehensive backing of TC Latin America Partners and Grupo ZFB, enhances the probability of operational success and profitability. The facility's Tier III certification assures potential clients of high availability and reliability, key requirements in today's data-driven economy.

Moreover, as the market continues to evolve, this investment not only positions KIO strategically within Colombia but also opens doors for further expansions into other Latin American countries. The symbiotic relationship between local and foreign investments fosters innovation, creating an ecosystem beneficial for technological advancements and infrastructural improvements.

In conclusion, the Zetta Data Center Complex, backed by reputable investors and situated in a rapidly developing market, represents a sound investment opportunity, with potential for considerable growth and sustainability in an increasingly digital world.

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