Colt Technology Services has made a significant move by selling eight of its European data centers to NorthC, a Netherlands-based company, as part of a strategic pivot towards sustainable digital infrastructure. The data centers, located in Amsterdam, Berlin, Dusseldorf, Frankfurt, Hamburg, Munich, and two in London, were originally acquired by Colt through its takeover of Lumen EMEA. These facilities collectively offer a power availability exceeding 25 MW. Alongside the data centers, Colt’s colocation business, which serves around 400 customers, has also been transferred to NorthC. This transaction raises the question of whether this sale is a strategic masterstroke for Colt.
Focusing on Strategic Growth and Sustainability
Colt Technology Services has retained its network equipment within the eight data centers, ensuring continuity in its expansive global digital infrastructure while forming a collaboration with NorthC. Colt maintains an extensive network that spans 32,000 connected buildings across 40 countries, with over 275 Points of Presence (PoPs). This infrastructure includes ten subsea cable systems and shared management of the AS3356 internet network, which is highly interconnected. CEO Keri Gilder emphasized that the divestiture is aligned with Colt’s goals of fostering growth, improving customer experience, and ensuring a sustainable future network. This strategic shift allows Colt to hone in on expanding and enhancing its core network services.
In parallel, NorthC is poised to enhance its data center presence across the Benelux, Germany, Austria, and Switzerland, significantly increasing its capacity in Amsterdam, a key market. NorthC’s acquisition extends beyond the physical locations; it includes data centers previously owned by its foundational companies, The Datacenter Group and NLDC, as well as assets from its German and Swiss acquisitions. This move serves to solidify NorthC’s position as a leading regional data center platform in northwestern Europe, particularly within Germany, which is recognized as Europe’s largest economy. By strengthening its portfolio and customer base, NorthC is better positioned to compete and grow in a highly competitive market.
Partnership and Industry Trends
The continuation of Colt’s network presence within the sold data centers suggests a sustained partnership with NorthC, which could yield mutual benefits. For Colt, this relationship ensures that it continues to support its global operations while allowing NorthC to leverage the infrastructure for expanded service offerings. This trend of consolidation and specialization within the data center industry is indicative of how companies aim to streamline operations and focus on their strengths. For Colt, this means prioritizing network services and digital infrastructure, while NorthC enhances its data center footprint and regional influence. The sale of these assets enables Colt to redirect resources and investment towards more strategic initiatives, underpinning its growth and sustainability endeavors. For NorthC, the acquisition of eight data centers provides immediate capacity expansion and customer base growth. The merged entity stands to benefit from economies of scale and united expertise, thereby offering enhanced services to current and future customers. This mutually beneficial arrangement could set a precedent in the industry, highlighting how strategic divestitures and acquisitions can facilitate growth and operational efficiency simultaneously.
The Path Forward
Colt Technology Services has taken a notable step by selling eight of its European data centers to NorthC, a company based in the Netherlands. This move aligns with Colt’s strategic emphasis on sustainable digital infrastructure. The data centers are located in key cities across Europe including Amsterdam, Berlin, Dusseldorf, Frankfurt, Hamburg, Munich, and two in London. These facilities, initially acquired by Colt through its purchase of Lumen EMEA, offer a combined power availability of over 25 MW. In addition to these data centers, Colt has also transferred its colocation business that serves about 400 customers to NorthC. This transaction prompts a consideration of whether this sale is a strategic masterstroke for Colt. By divesting these assets, Colt may be positioning itself to focus more on innovative infrastructure solutions and expand its influence in the sustainable technology sector. This strategic shift could potentially lead to greater efficiencies and renewed growth in Colt’s core areas of expertise.