CBRE buys data centre infrastructure provider

CBRE has bought data centre infrastructure provider Direct Line Global from private equity firm Guardian Capital to differentiate its offer from its rivals. The acquisition is expected to be immediately accretive to CBRE’s core earnings per share. Founded in 1997, Direct Line Global provides design, installation, maintenance and management solutions for data centre owners and operators, primarily in the US. It is based in Fremont, California, and has more than 1,000 employees across operations in Virginia, Hong Kong, the Philippines, Singapore and South Korea. It is focused on serving the world’s largest global technology companies across the hyperscale market as well as co-location and enterprise segments. Direct Line Global provides technical services such as server support infrastructure, while CBRE focuses on facilities management services. CBRE said combining the two will give it the ability to “deliver integrated data centre solutions that no other service provider can match”. Direct Line Global will operate as part of CBRE’s data centre solutions business, within the global workplace solutions division. The global market for data centre support services is estimated to be worth around $30bn (£23.6bn), according to CBRE, and is expected to grow at 16% per year from now to 2028. Vikram Kohli, chief operating officer at CBRE, said: “This acquisition fits squarely with our strategy of enhancing our capabilities in asset classes that benefit from secular tailwinds – in this case, the increasing digitisation of the global economy. “Direct Line Global perfectly complements our existing data centre management capabilities and provides us with best-in-class technical capabilities that differentiate our service offering.” Bill Nelligan, chief executive officer at Direct Line Global, said: “We see huge benefits from operating as part of CBRE. Our business has strong momentum, driven by the economy’s voracious appetite for data and the explosive growth of artificial intelligence. We are particularly energised about the opportunities that CBRE’s pre-eminent global platform will afford us for overseas growth.” Photo © yucelyilmaz/iStock