AT&T signed a strategic alliance with Brookfield Infrastructure and its institutional partners to transfer its data center co-location operations and assets to Brookfield. Under Brookfield’s ownership, the business will continue to deliver co-location services to customers in 18 internet data centers in the United States and 13 outside the U.S., according to the carrier. The co-location data center operations serve a customer base of more than 1,000 companies across the technology, financial, industrial, media retail and other sectors.
Under terms of the agreement, AT&T will receive $1.1 billion, which it will use to pay down debt. After the deal closes, expected within six to eight months, customer contracts, employees supporting the co-location operations, fixed assets, leased and owned facilities will transfer to Brookfield.
Once finalized, AT&T will continue to deliver network services to its customers at the IDCs. AT&T will become a sales channel for the business and will be the anchor tenant of the co-location operations.
Brookfield owns and manages essential infrastructure globally, including sectors such as: communications, utilities, transport, energy, renewable power, and sustainable resources. Brookfield is establishing a wholly-owned company to own and operate the AT&T assets and intends to appoint Tim Caulfield as CEO of the business. Caulfield is currently CEO of ANTARA Group, an IT management consultancy focused on data center services.
June 22, 2018
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