Thursday, November 5, 2015

CenturyLink Looks to Sell its 59 Data Centers

CenturyLink has retained financial advisors to assist in the exploration of strategic alternatives for its data centers and colocation business operations.

CenturyLink has 59 data centers in North America, Asia and Europe with more than 185 megawatts of power across 2.6 million square feet of raised floor capacity. The review of strategic alternatives will involve a full range of options including, but not limited to, a partnership or joint venture, a sale of all or a portion of the data centers, as well as keeping some or all of these assets and operations as part of CenturyLink's portfolio.

"We are confident in our strategy of combining enhanced network and hosting capabilities with a suite of related managed services offerings for our customers. We expect colocation services to remain part of our service offerings, but we do not believe ownership of the physical data center assets is necessary to effectively deliver those services. Therefore, we are exploring all of the strategic alternatives available for our data centers. We have not set a timetable for completion of this process and will take the time necessary to ensure we best position CenturyLink and deliver value to our shareholders, while remaining focused on providing our colocation customers excellent service," stated  Glen F. Post III, chief executive officer and president.

In its quarterly financial statement, CenturyLink stated that revenue from high-bandwidth data services provided to business customers, including MPLS, Ethernet and Wavelength, grew more than 7% year-over-year. Strategic business revenues were $1.56 billion in the quarter, a 2.1% decrease from third quarter 2014, primarily due to continued declines in low-bandwidth data and hosting services.

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