Verizon Launches Auction To Sell Data Centers (reuters.com)

operator_error writes: Verizon has now chosen to reverse "its strategy to expand in hosting and colocation services after it acquired data center operator Terremark Worldwide Inc in 2011 for $1.4 billion", and has "started a process to sell its data center assets". The so-called 'colocation' portfolio up for sale includes 48 data centers, and generates annual earnings before interest, tax, depreciation and amortization of around $275 million. The enterprise telecommunications industry has had to adapt in recent years to corporate customers seeking more sophisticated and cheaper offerings to manage their data. Verizon joins a host of its rivals in telecommunications who are shedding their data centers.

Comments

Microsoft

[JustAnotherOldGuy]

I wouldn't be too surprised if Microsoft bought some, gutted them, and fitted them with new racks of up-to-date gear. Right now MS is desperately in need of physical server space because their Azure stuff is actually (surprisingly) getting a lot of traction.

They literally cannot build datacenters fast enough so they've taken to leasing buildings and then doing the gut/harden/refurbish thing to them, turning them into colos and full-fledged DCs.

An existing DC would be a prime candidate for this as it's already a DC and would only need modern racks and servers. Cooling, power, and physical security are already there and that's what takes the longest to complete. Rack installation, on the other hand, can be done very quickly.