Digital Colony buys data center assets, launches Scala to serve Latin American hyperscale data center requirements

April 28, 2020

The new company will have headquarters in Sao Paulo, Brazil, and be led by Marcos Peigo.

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Digital Colony Management, LLC, the digital infrastructure investment arm of Colony Capital, Inc. (NYSE: CLNY), has agreed to acquire data center assets from UOL Diveo for an undisclosed sum. Upon closing, Digital Colony says it will rename the assets Scala Data Centers S/A. The new company will have headquarters in Sao Paulo, Brazil, and be led by Marcos Peigo. Peigo, currently an operating partner at Digital Colony, will carry the title of CEO at Scala. He formerly was executive director of UOL Diveo and most recently vice president of value creation for IBM Latin America.

Digital Colony says that Brazil is an attractive and underserved market for outsourced data centers, with demand for such services expected to grow. The company believes the region presents multibillion-dollar potential “through further accretive investment opportunities,” in the words of a Digital Colony press release. Scala represents Digital Colony’s second investment in Brazil and fourth in Latin America. The company acquired Highline do Brasil in 2019, Andean Telecom Partners in 2017, and Mexico Towers Partners in 2013 through its affiliate Digital Bridge.

“Hyperscale data centers are more in need than ever, and we are confident that Scala, with its high-quality facilities, significant expansion capacity, and seasoned management team will provide a superior hyperscale solution. The business is ideally positioned to support the growth of cloud and IT outsourcing across Latin America and meet the demands of our global customers,” stated Jon Mauck, managing director of Digital Colony.

UOL Diveo, meanwhile, will continue to provide infrastructure services through Scala as well as managed services, multicloud, security, software development, and “digital solutions” through its services company, Compasso UOL.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

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