Acquisition

3C and Datalec merge to form $400M+ AI data centre platform

What's the deal? 3C, a liquid-cooling-led data centre infrastructure company founded by former CoolIT Systems chief executive Steve Walton, has merged with Datalec Precision InstallationsDealroom has a profile for this one. Try Dealroom →, a London-based data centre engineering specialist founded in 2012. The combined business, 3C DatalecDealroom has a profile for this one. Try Dealroom →, designs, builds, and operates critical infrastructure for AI data centres. Terms were not disclosed.

What's the endgame? 3C Datalec employs roughly 1,000 people and forecasts 2026 revenue of over $400 million. It works with four of the five largest hyperscalers and more than 25 colocation providers, with active projects across 16 countries.

Why now? "Rack densities have outgrown air, and liquid cooling is no longer optional," said Walton, now chief executive of 3C Datalec. As AI workloads push up compute density, power demand, and thermal complexity, the merger pairs 3C's liquid cooling expertise with Datalec's engineering, manufacturing, and facilities management.

Where's it expanding? Backed by new investment from Longbow CapitalDealroom has a profile for this one. Try Dealroom →, S2G InvestmentsDealroom has a profile for this one. Try Dealroom →, Apogem CapitalDealroom has a profile for this one. Try Dealroom →, and QICDealroom has a profile for this one. Try Dealroom →, the company plans to hire 200 engineers and open facilities in Warsaw, Poland; Calgary, Alberta; and Austin, Texas over the next 12 months.

The combined company organises its work into three pillars: Create (design and engineering), Construct (liquid cooling, M&E, ODM manufacturing, and connectivity), and Care (commissioning, operations, maintenance, and facilities management).

What could go wrong? The industry is short of skilled data centre engineers. To fill the gap, 3C Datalec is training its own staff through apprenticeships and an internal university, and will share equity via its Leadership & Employee Equity Program.

Datalec's founders framed the deal as a way to scale without losing their culture. "Joining 3C means we can now offer liquid cooling at global scale, but our commitment doesn't change: the same teams, the same contacts and the same focus on getting it right for every customer," said co-founder Stuart Richmond.

The signal: "AI is rewriting the requirements for data centre infrastructure and liquid cooling sits at the centre of that shift," said Matthew Cunning, director at Longbow Capital. As compute density climbs, players are consolidating cooling, power, construction, and operations into single platforms — betting that integration, not point solutions, wins AI-era infrastructure.

Read more: prnewswire.com

Image credit: Generated with Gemini

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