Bankrupt Cyxtera Technologies Inc. is in advanced talks to sell a large swath of its data centers to Brookfield Infrastructure Partners, Bloomberg News reported. As part of its chapter 11 filing, Cyxtera has been looking at two possible tracks, either recapitalizing itself, with lenders taking control of the firm, or selling itself. Cxytera’s and Brookfield Infrastructure Partners’s negotiations are continuing and could still fall apart. Brookfield Infrastructure Partners has been building its data center holdings, with recent acquisitions of European firm Data4 and Compass Datacenters LLC. It also owns Dawn Acquisitions LLC, which does business as Evoque Data Center Solutions. Digital Realty Trust Inc. has also shown interest in some of Cxytera’s assets, Bloomberg previously reported. Prior to its June bankruptcy, Cyxtera had entered negotiations with lenders on how to tackle nearly $870 million of debt due next year. The company was formed in 2017 after CenturyLink’s data center and co-location business was combined with Medina Capital’s security and data analytics operations. In 2021, Cyxtera combined with a black-check firm in a deal valuing the combined company at about $3.4 billion on an enterprise basis.
