25 June 2018
| Alan Burkitt-Gray
Brookfield Infrastructure has bought all AT&T’s 31 data centres for $1.1 billion, including 13 outside the US.
The move comes a year after Equinix bought 29 data centres from
Verizon for $3.6 billion.
Brookfield will put the former AT&T data centres into a new
wholly owned company, headed by Tim Caulfield, the founder and
CEO of Antara group, an IT management consultancy.
Caulfield set up Antara in 2013. He has previously worked for
Cable & Wireless, Savvis and other companies in the data
AT&T and Brookfield are describing this deal as "a
strategic alliance", and AT&T says it "will continue to
deliver network services to its customers" after the data
centres are transferred to the new owner.
The data centres have "more than 1,000" customers in
"technology, financial, industrial, media retail and other
sectors", said AT&T, which will continue to offer customers
access to colocation services at more than 350 data centres,
including those it is selling to Brookfield.
AT&T and Brookfield say they will also work under a joint
marketing agreement that will enable both companies to
participate in sale/resale opportunities to bring customers a
full suite of services.
The Toronto-based Brookfield group is also the company expected
to buy real estate in New Delhi and Chennai for $110
million from heavily indebted Indian company Reliance
Communications (RCom) as part of its break-up.
RCom’s Global Cloud Exchange – which owns
worldwide subsea cable, enterprise telecoms in India and an
emerging data centre business in Mumbai – is subject
to three separate bids from so far unnamed organisations.
Brookfield Infrastructure, quoted on the Toronto and New York
stock exchanges, says it has more than $75 billion in assets
under management around the world across the communications
infrastructure, utilities, transport, energy, renewable power
and sustainable resources sectors.
AT&T says it expects the Brookfield deal to close within
eight months – a lot faster than its $85 billion
acquisition of media company Time Warner, which was announced
in October 2016 and completed last week. It
will use the $1.1 billion from Brookfield to pay down