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Digital Edge to Expand Platform Footprint in South Korea

Acquires two data centers in South Korea and forms a long-term strategic alliance with Sejong Telecom
´º½ºÀÏÀÚ: 2021-04-02

SINGAPORE-- April 02, 2021 -- Digital Edge (Singapore) Holdings Pte. Ltd. (“Digital Edge” or the “Company”), a leading data center platform, established to transform the digital infrastructure in Asia and backed by Stonepeak Infrastructure Partners, today announced plans to expand its regional footprint to South Korea by entering into a definitive agreement to acquire Sejong Telecom’s data center assets in an all-cash transaction. At closing, Digital Edge will acquire one data center in Gangnam, Seoul and a Cable Landing Station facility in Centum City, Busan. The addition of these strategic assets, including their associated operations and customers, marks the Company’s initial entry into the Korean market and further strengthens its regional platform.

This transaction will allow Digital Edge to immediately offer interconnect and data center solutions in the fast-growing Korean market and establish a solid foundation for future expansion in two key metros - Seoul and Busan. Sejong Telecom’s data centers are strategically located and bring a wealth of connectivity options from existing customers. Digital Edge plans to invest additional capital to expand the capacity and improve the energy efficiency of both facilities. Between the transaction and subsequent expansions, Digital Edge expects to invest over US$120 million.

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.

“With our US$1 billion capital commitment to build the Digital Edge Platform in Asia, we are excited to announce the plan to enter into the Korean market, following our initial investments in data centers in Japan. Korea is one of the fastest growing markets in Asia with the most advanced digital infrastructure,” said Samuel Lee, Chief Executive Officer of Digital Edge. “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.”

“Our partnership with Digital Edge will further accelerate digital transformation opportunities for Korean enterprise customers,” said Yoo Ki-yoon, President of Sejong Telecom. “We look forward to combining access to Digital Edge’s interconnect-rich data center platform with Sejong Telecom’s advanced network connections to offer a wider range of cloud and network enabled solutions.”

“The acquisition of these strategic assets in South Korea will form a solid core for our maturing regional platform,” said Yongsuk Choi, Chief Infrastructure and Data Centre Operations Officer of Digital Edge. “It will position Digital Edge 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.”

The transaction is expected to close in the second quarter of 2021 and is subject to customary closing conditions and regulatory approvals.



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