Zayo offloads co-location data centers

BOULDER — Internet infrastructure firm Zayo Group Holdings Inc. sold off its co-location data-center business, which includes a Westminster location, to IT manager DataBank Holdings Ltd.

In a statement Tuesday, the Boulder company said the Dallas-based DataBank will acquire and manage its zColo-branded U.S. and European data centers, but Zayo will remain on as an anchor customer.

Terms of the deal were not disclosed.

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Co-location data centers are a sharing option where companies buy their own cloud servers and equipment and rent space in the center, which provides technical support, cooling, security and other services, almost akin to a coworking office location.

Zayo CEO Dan Caruso said the sale allows the company to focus on its previously-announced scaling down to its core networking business.

“This transaction… will allow our co-location customers to benefit from the scale of a larger operator and allow Zayo to better align its resources around its fiber and connectivity business,” he said in a statement.

There are four zColo centers in Colorado, including one on Westminster’s west side. In total, the subsidiary has 33 U.S. locations and five spread across the U.K., France and the Netherlands.

Zayo was previously a publicly traded company but completed a $14.3 billion deal in March to be acquired by a pair of private equity firms and go off the markets. It remains headquartered in Boulder.