Belgian telco Proximus has sold its data centers to local operator Datacenter United (DC United).

Announced this week, Datacenter United has taken over four facilities in a deal valued at €128 million ($138.5m). The transaction is expected to close by Q1 2025.

As part of the deal, DC United owner TINC will sell a 50 percent stake in the newly combined data center firm to Cordiant Digital Infrastructure Limited.

Proximus sells data centers to DC United

The Proximus deal comprises four Belgian data centers around Brussels – across one location in Evere and two in Mechelen – including the Proximus-owned real estate in Evere and one of the Machelen sites, as well as the supplier contracts and part of the housing customer contracts.

Together, the acquired data centers reportedly offer around 11MW of capacity, serving both Proximus’s internal IT applications and B2B housing and hosting services for enterprise customers.

“The decision to cooperate with an external partner on our data center housing and infrastructure business is a key milestone in our asset divestment plan,” said Guillaume Boutin, Proximus Group CEO. “By partnering with Datacenter United, we ensure that Proximus and our customers will continue to benefit from state-of-the-art infrastructure while we concentrate on delivering excellent IT integration services. I look forward to working with Datacenter United, a strong Belgian specialist in data center operations, and I'm confident that they will create important value for Proximus and for our customers.”

Following the transaction, Proximus will enter into a 10-year master service agreement (MSA) to secure the provision of data center services from the acquired sites, along with a separate multi-year Lease Agreement for office and telco spaces in Evere and Mechelen. This agreement includes an initial 10-year term with two 5-year extension options.

Proximus said the fees in the agreements will be offset by opex and capex savings related to operations, maintenance, and modernization of the facilities.

News that Proximus was looking to sell its data centers surfaced back in July 2023. Reports suggested the company was seeking €300 million ($329m at the time).

In 2021, HCL Technologies announced that it would manage Proximus’ private cloud infrastructure. Earlier this year, Proximus partnered with Google to offer sovereign cloud services in Belgium and Luxembourg.

Cordiant takes over half of DC United

Datacenter United, founded in 2010, currently operates nine data centers in Belgium. TINC acquired a 75 percent equity interest in Datacenter United in 2020.

As part of the Proximus deal, Cordiant has agreed to acquire half of DCU from TINC and DCU CEO, Friso Haringsma. Following completion of the transaction, TINC will continue to hold 50 percent of the share capital of DCU.

The Proximus data centers will be transferred to a newly formed company and DCU will acquire the entire share capital of this entity. Post completion, Cordiant and TINC will each own 47.5 percent of the economic rights of the combined group, and the remaining 5 percent (without voting rights) will be owned by Haringsma.

Haringsma will become the CEO of the combined businesses of DCU and PDC Business.

Cordiant, TINC, and Haringsma have agreed to provide financing to DCU for the acquisition of the Proximus business. Cordiant said its part of the deal totaled €92.3 million ($100m).

“We are delighted to be working with TINC, who, as a long-term investor, shares a common strategic vision for this business and will be able to invest alongside Cordiant in the further expansion of Datacenter United,” said Steven Marshall and Benn Mikula, co-founders of Cordiant Digital Infrastructure Management. “This transaction could only be successfully executed because of the ability to create a potentially valuable combination from a complex situation. The acquisition provides a good foundation for Cordiant’s value creation plan for Datacenter United.”

Upon completion, the combined group will operate 13 data centers with 13MW of IT power, with the potential to expand with another 11.1MW across its existing locations.

Proximus, as a direct customer, will use 37 percent of the combined group's IT power capacity. Other customers across the group include a mix of blue-chip corporates and government bodies and will take the overall current capacity utilization to around 80 percent.

“This transaction represents a major milestone for Datacenter United. With an increased foothold in the important Brussels area, Proximus as key customer, and Cordiant as a complementary new shareholder, Datacenter United is well positioned for strong growth,” said Manu Vandenbulcke, TINC CEO. “For TINC, supporting such a growth story aligns perfectly with our ambition to contribute to the development of the infrastructure for the world of tomorrow and to create value for our shareholders. We are looking forward to the collaboration with Cordiant and Proximus in this new strategic partnership.”

Founded in 2007, TINC’s investments include roads, real estate, and wind and solar farms; its other digital infrastructure investments include French fiber company NGE Fibre and Dutch fiber firm GlasDraad.

TINC acquired a majority stake in DC United in early 2020. Founded in 2011, at the time the colocation firm had three facilities in operation across Antwerp (x2) and Brussels. In 2022, DC United acquired local operator DC Star, adding three facilities in Gent, Burcht, and Oostkamp totaling 6.5MW. Last year, it acquired Hasselt DC, taking over two Limburg-based data centers totaling 460 racks and 900kW.

Reports that TINC may be looking to sell a stake in DC United surfaced earlier this year.

Cordiant Digital Infrastructure - a fund created by Cordiant Capital and listed on the London Stock Exchange – owns Czech telecoms firm České Radiokomunikace (CRA) US data center firm Hudson Interxchange, Ireland's Speed Fibre, and Belgian tower firm Norkring Belgie.