Layer 9 Data Centers: Company Profile

Background

Overview

Layer 9 Data Centers, established in 2020, is a data center solutions provider headquartered in Phoenix, Arizona. The company specializes in delivering hyperscale data center capacity to the Latin American market, aiming to bridge the gap between global cloud service providers and the region's growing digital infrastructure needs. With a team boasting over 50 years of combined experience in both the U.S. and Mexico, Layer 9 leverages its expertise in commercial real estate, data center portfolio management, and solution delivery for major hyperscale and wholesale data center operators.

Mission and Vision

Layer 9 is committed to providing scalable, flexible, and sustainable data center solutions that meet the evolving demands of cloud service providers (CSPs) and enterprise clients in Latin America. The company's vision is to drive the evolution of data center services by delivering high-quality infrastructure in underserved markets, thereby enhancing the region's connectivity to the global cloud ecosystem.

Key Strategic Focus

Core Objectives

Hyperscale Capacity Delivery: Developing large-scale data centers tailored to the needs of CSPs and enterprise clients.

Latin American Market Penetration: Establishing a strong presence in key regions such as Bajio and Queretaro in Mexico, with plans for further expansion.

Sustainable Infrastructure: Implementing energy-efficient designs and securing renewable energy sources to ensure environmentally responsible operations.

Specialization and Technologies

Layer 9 focuses on modular design and prefabricated infrastructure to deliver cost-effective, scalable, and reliable data center services. The company emphasizes deep local partnerships and global supply chain connections to ensure quality and predictability in its offerings.

Target Markets

The primary focus is on the Latin American market, particularly Mexico, where there is a growing demand for robust data center infrastructure to support increasing digital consumption and cloud services.

Financials and Funding

Funding History

In June 2022, Layer 9 closed a Series A investment round led by a consortium of industry veterans, including LBS Power. The investment aimed to accelerate the company's plans to bring hyperscale capacity to Latin America.

Utilization of Capital

The funds are allocated towards securing critical infrastructure and land to support data center development in Latin America, beginning with a 96MW data center campus in the Bajio region of Mexico.

Pipeline Development

Key Projects

96MW Data Center Campus in Guanajuato, Mexico: Groundbreaking occurred in October 2022, with the first phase expected to be operational by Fall 2023. The campus will consist of two 32MW powered shell buildings with turnkey data center suite capacity.

Timelines

Fall 2023: Completion and operationalization of the first phase of the Guanajuato data center campus.

Technological Platform and Innovation

Proprietary Technologies

Layer 9 employs modular design and prefabricated infrastructure to enhance scalability and reduce deployment times. This approach allows for rapid expansion and customization to meet client-specific requirements.

Scientific Methodologies

The company integrates energy-efficient designs and sustainable practices, including securing renewable energy sources, to minimize environmental impact and operational costs.

Leadership Team

Executive Profiles

Michael Ortiz: Co-Founder and Chief Executive Officer. Michael brings extensive experience in commercial real estate and data center portfolio management, having held leadership roles at Hemisphere Capital Advisors, Keyser, and Colliers.

Alejandro Cantu Sepulveda: Co-Founder and Chief Operating Officer. Alejandro has a background in critical power solutions and has served in leadership positions at Midtronics, Power Distribution Inc, and LBS Power.

Scott Davis: Interim Chief Development Officer and Board Member. Scott has over 30 years of experience in data center design and operations, including serving as Chief Technology Officer and Executive Vice President at DuPont Fabros Technology.

Gerry Jepson: Board Member. Gerry brings over 35 years of experience in data center design, construction, and operations, having held leadership roles at CPG Beyond and Total Site Solutions.

Chris Altomare: Board Member. Chris has over 30 years of experience in commercial real estate and construction, currently serving as President of Network Environments, a firm specializing in prefabricated data center solutions.

Fernando Limon: Board Member. Fernando is the CEO of Lemonroy Business Solutions, providing critical power solutions to various industries, including data centers.

Leadership Changes

In November 2022, Layer 9 appointed a Board of Directors to support its growth, adding seasoned leaders such as Scott Davis, Gerry Jepson, Fernando Limon, and Chris Altomare.

Competitor Profile

Market Insights and Dynamics

The Latin American data center market is experiencing rapid growth, driven by increasing digital consumption and cloud service adoption. Regions like Bajio and Queretaro in Mexico are emerging as key hubs for data center development, with investments expected to exceed $2.3 billion by 2030.

Competitor Analysis

Key competitors in the region include established players and newcomers such as Ada Infrastructure, CloudHQ, DHAmericas, and Surfix Data Center. These companies focus on providing colocation and hyperscale data center solutions, leveraging advanced technologies and strategic partnerships to strengthen their market positions.

Strategic Collaborations and Partnerships

Layer 9 has secured a Power Purchase Agreement with access to no less than 100MW of power, with exclusivity rights and secured options to acquire additional land and power in a second region of Mexico near Monterrey.

Operational Insights

Layer 9's strategic focus on the Latin American market, particularly Mexico, positions the company to capitalize on the region's growing demand for data center infrastructure. By leveraging modular design and prefabricated infrastructure, Layer 9 offers scalable and cost-effective solutions that differentiate it from competitors. The company's commitment to sustainability and energy efficiency further enhances its competitive advantage.

Strategic Opportunities and Future Directions

Layer 9 plans to use its initial development in Guanajuato as a springboard for expansion into other Latin American markets and EMEA. The company's strong foundation, experienced leadership team, and strategic partnerships position it well to meet the evolving needs of CSPs and enterprise clients in these regions.