In a $1.1 billion deal, AT&T is transferring its data center operations to Brookfield.
AT&T is selling its data centers to Brookfield Infrastructure for $1.1 billion and entering into a strategic alliance with the company which includes a colocation services agreement that will enable AT&T to continue serving its customers in internet data centers (IDC).
More than 1,000 companies across different sectors, such technology, financial, industrial, use AT&T’s IDCs. AT&T has 18 IDCs in the U.S. and 13 outside the U.S. AT&T will continue to deliver network services to its customers at the IDCs after the transaction closes, the company said. AT&T and Brookfield promise the same level of service, according to a press release.
AT&T said that it will continue to offer customers access to colocation services at more than 350 data centers — including transferred IDCs — around the world as part of its colocation ecosystem program.
Under the deal, Brookfield will pay AT&T $1.1 billion, which AT&T will use to pay down debt. AT&T will become the anchor tenant of the colocation business and an active sales channel for the business. The deal must be cleared by regulatory.
AT&T has been planning on selling its data centers in preparation for its proposed acquisition of Time Warner. Verizon sold its data center business to Equinix in 2017.
Brookfield Infrastructure is a large investor, owner and operator of infrastructure assets globally, with more than $75 billion in assets under management across the communications infrastructure, utilities, transport, energy, renewable power, and sustainable resources sectors.
