Zayo to sell zColo data center business to DataBank

Sept. 29, 2020
The assets include 44 data centers in more than 20 markets across the United States and Europe. Dallas-based DataBank will add the zColo facilities to its current data center roster.

Zayo Group Holdings, Inc. has decided to get out of the data center services business. The company says it has agreed to sell its zColo unit, including certain U.S. and European data center assets, to data center services provider DataBank. Terms of the deal, which is expected to close by the end of this calendar year, were not disclosed. DataBank will own and operate the data centers, for which Zayo will become an anchor customer and provide connectivity.

The assets include 44 data centers in more than 20 markets across the United States and Europe. Dallas-based DataBank will add the zColo facilities to its current data center roster, which includes three in Dallas, three in Kansas City, KS, two in Minneapolis, two in Pittsburgh, two in Indianapolis, and one each in Atlanta, Baltimore, Cleveland, and Salt Lake City.

Zayo’s management has had a few tumultuous years as they positioned the company for future growth (see, for example, “Zayo to split in two”). The company eventually was acquired by investment firms Digital Colony Partners and the EQT Infrastructure IV fund in a deal that closed this past March (see “Digital Colony, EQT to buy fiber-optic network services supplier Zayo”).

“This agreement represents a material step in our path to focus on our core Networks business, which we first outlined in February 2019,” said Dan Caruso, CEO of Zayo. “With approximately 1,200 of the world’s most important data centers on our network, connectivity to major interconnection hubs and data centers will always remain a core part of our business. This transaction, however, will allow our colocation customers to benefit from the scale of a larger operator and allow Zayo to better align its resources around its fiber and connectivity business.”

“The applications that increasingly power our digital economy demand proximity to end users, scalable space and power, and network diversity and neutrality,” added Raul Martynek, CEO of DataBank. “This transaction establishes the preeminent edge colocation platform in the U.S., allowing us to meet these demands across a wide geographic footprint and better serve our cloud, content and enterprise customers. We are excited to welcome zColo customers and employees to DataBank.”

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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.

You can connect with Stephen on LinkedIn as well as Twitter.

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