Brookfield Asset Management, a global investment firm, is reportedly preparing to sell a minority stake in Ascenty, a leading data center operator in Latin America. The company is exploring the option with the assistance of an investment bank and aims to finalize the sale by the end of 2025.
Background on Brookfield’s Stake in Ascenty
Brookfield, in partnership with Digital Realty, acquired Ascenty in 2018 through a joint venture for $1.8 billion. As part of the deal, both Brookfield and Digital Realty each hold a 49% stake in the company, while Ascenty’s founder and CEO, Chris Torto, retains the remaining 2%. Ascenty has grown to become a major player in the Latin American data center market, with 34 facilities either operational or under development across the region.
Why Is Brookfield Selling Its Stake in Ascenty?
The decision to sell a minority stake could be influenced by multiple factors, including strategic adjustments within Brookfield’s portfolio and the rapid expansion of Ascenty across Latin America. The sale is part of Brookfield’s broader strategy to continue its investment in the region while monetizing part of its position.
Ascenty’s Expansion and Growth in Latin America
Ascenty, founded in 2010 by Chris Torto, has seen impressive growth. The company operates data centers primarily in Brazil, but has also expanded to Chile, Mexico, and Colombia. In 2023, Ascenty secured an additional $1 billion in financing to fuel its expansion efforts across Latin America. Notably, the company is working on a new project in Chile, where it plans to convert industrial warehouses into state-of-the-art data centers.
What Is the Status of Ascenty’s Operations and Future Plans?
Ascenty’s growth trajectory shows no signs of slowing down. The company’s data centers support critical cloud and IT infrastructure for businesses in a region that is rapidly adopting digital transformation. In 2023, Ascenty submitted an environmental impact review for its new $140 million data center project in Quilicura, Chile. This facility will span nearly 55,000 square meters and is expected to begin construction by September 2025.
Implications of the Stake Sale for Ascenty’s Future
While the sale of a minority stake does not imply any immediate changes to Ascenty’s operations, it signals Brookfield’s intent to continue leveraging its position in Latin America’s growing data center market. The sale could also bring new strategic partnerships or additional capital to Ascenty as it seeks to expand its footprint further.
Key Takeaways on Brookfield’s Stake Sale and Ascenty’s Growth
- Brookfield’s Stake Sale: Brookfield Asset Management plans to sell a minority stake in Ascenty, likely with the help of a local investment bank.
- Growth in Latin America: Ascenty operates 34 data centers and is actively expanding, with a major new project underway in Chile.
- Strategic Move: The stake sale is part of Brookfield’s portfolio adjustment and could bring fresh investment or partnerships to the table.
FAQ: Common Questions About Brookfield’s Stake Sale and Ascenty
1. Why is Brookfield selling a minority stake in Ascenty?
Brookfield is looking to monetize part of its position in Ascenty while still retaining a significant interest in the company as it continues to expand in Latin America.
2. What is Ascenty’s role in Latin America’s data center industry?
Ascenty is a leading operator of data centers across Latin America, with 34 facilities in Brazil, Chile, Mexico, and Colombia, and a strong pipeline for future projects.
3. How will Brookfield’s stake sale affect Ascenty’s expansion plans?
The sale of a minority stake is not expected to disrupt Ascenty’s operations. However, it may bring new partnerships or capital that could accelerate its expansion.
4. What are the details of Ascenty’s new project in Chile?
Ascenty plans to convert industrial warehouses into a new data center in Quilicura, Chile, spanning over 55,000 square meters, with construction slated to begin by September 2025.
5. How does Ascenty fund its expansion efforts?
In 2023, Ascenty secured $1 billion in financing to support its ongoing growth and expansion across the Latin American market.
