5GN buys Brisbane data centre for $1.1M
- 19 November, 2020 10:43
5G Networks is to ramp up its presence in Queensland with the purchase of a 3MW data centre in Brisbane.
The publicly listed company paid $1.1 million for the operating infrastructure at Pipe Networks Data Centre in Fortitude Valley, giving it access to 250 racks.
Once the facility is operational in January, 5GN will operate data centres in each state along the East coast.
This follows 5GN's intentions to extend its fibre network into Brisbane through acquisition earlier this year.
“The acquisition will also accelerate the continued execution of the 5GN wholesale channel strategy for infrastructure and data centre services,” 5GN told shareholders.
“The geographical expansion will also include the extension of the 5GN Cloud solution, complemented by our Wavelength and Ethernet backbone networks products which connect over 80 data centres Australia wide in addition to international capacity.”
Initially, 5GN will offer Brisbane customers six months of rack rental charges waived combined with a dark fibre cross connect to any data centre in Brisbane.
“We are really excited to be exploiting our advantage of being a DC operator and fibre network owner, I haven’t seen rack space and dark fibre product bundling from one provider before, but this is what our customers are asking for. It allows our partners to grow with a fixed cost model”,” CEO Joe Demase added.
Before the end of the 2020 financial year, 5G Networks began a $18.3 million capital raise in an effort to pursue both acquisitions and grow its channel sales footprint in Australia.
Since then, the data infrastructure and network services pursued Webcentral, and the remaining operation of what was Arq Group.
The acquisition initially faced opposition to the deal from financial services firm Keybridge Capital, which accused 5GN of “coercive” shareholder activity in a bid to the Australian Takeovers Panel.
As of 18 November, Keybridge has lodged a second submission to the panel’s ruling. However, Webcentral is now effectively under control of 5GN as Demase steps in as interim CEO.
