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CenturyLink Expanded Data Centers in Six Markets in 2015

CenturyLink’s first-half 2015 data-center projects covered six markets, adding about 10.8 MW of critical capacity and up to 35 MW of future headroom.
From TheFinanceBase Team2 min to read
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In the first half of 2015, CenturyLink completed data-center expansions in Boston, London, Minneapolis–St. Paul, Phoenix, Seattle, and Washington, D.C. The projects added approximately 10.8 megawatts (MW) of critical capacity and brought the company’s global data-center capacity to more than 185 MW.

Which six markets did CenturyLink expand in?

  • Boston
  • London
  • Minneapolis–St. Paul
  • Phoenix
  • Seattle
  • Washington, D.C.

These were the six markets covered by CenturyLink’s 2015 expansion announcement. The company also described separate moves in Australia and central Washington, but those were not part of the six-market list. CenturyLink’s July 22, 2015 announcement identifies the projects and distinguishes the additional regional moves.

How much capacity did the projects add?

CenturyLink said the completed projects added approximately 10.8 MW of critical capacity. After the expansions, its global data-center capacity exceeded 185 MW. The expanded facilities were designed to support up to an additional 35 MW as demand grew; that figure describes potential future capacity, not capacity already added in 2015. The company release does not give a facility-by-facility allocation of the 10.8 MW, so the total cannot be reliably divided among the six cities.

Why did CenturyLink choose these markets?

The company said expansion decisions were driven largely by customer demand. Enterprises were consolidating infrastructure they had operated on-site or across sprawling data centers, while moving workloads to cloud and hybrid-IT environments. CenturyLink positioned colocation as a way to obtain flexible, reliable capacity in specific geographic regions.

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Drew Leonard, then CenturyLink’s vice president of colocation product management, described the demand in the July 22, 2015 release: “As enterprises increasingly consolidate their on-premise and sprawling data center infrastructures, and move workloads to the cloud, they want outsourcing options that are flexible, reliable and in specific geographic regions.” The announcement also cited an Asia-Pacific public-cloud expansion and a partnership spanning five Australian markets as separate regional initiatives.

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What happened to CenturyLink’s data centers afterward?

CenturyLink announced in November 2016 that it would sell its data-center and colocation business to a consortium led by BC Partners and Medina Capital. The announced consideration was $2.15 billion in cash plus a minority stake. The portfolio then comprised 57 data centers, approximately 195 MW, and 2.6 million square feet—figures from the 2016 sale announcement, not a revised accounting of the 2015 expansion alone. CenturyLink’s SEC-filed announcement said the company would continue offering colocation through commercial relationships after the sale.

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The transaction closed on May 1, 2017. CenturyLink’s 2017 Form 10-K reported $1.8 billion in pre-tax cash proceeds and a minority stake in the limited partnership that owned the newly formed Cyxtera Technologies. The filing documents the completion and proceeds. The six-market expansion is therefore a CenturyLink-era event; its later ownership context is separate from the 2015 capacity figures.

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