According to DCD, US data center giants Digital Realty and Equinix are competing to acquire European operator atNorth in what could be a €4.5 billion ($5.2bn) deal. The bidding process reportedly involves Digital Realty going solo while Equinix has teamed up with the Canada Pension Plan Investment Board. Swiss private equity firm Partners Group, which acquired atNorth in December 2021, is now seeking that premium valuation after initially targeting around €4 billion back in October. The Nordic operator runs seven data centers across Sweden, Iceland, and Finland with more facilities in development across Denmark and other Scandinavian markets.
Nordic expansion game
Here’s what makes this acquisition so strategic: atNorth gives immediate access to markets both giants desperately want. Digital Realty has zero presence in Iceland and Finland currently. Equinix isn’t in Denmark or Iceland. And neither has any footprint in Norway, where atNorth is evaluating new sites. Basically, this is about filling critical geographic gaps in one move rather than building from scratch. The Nordic region has become incredibly attractive for data centers thanks to cheap renewable energy and cooling advantages. For companies needing industrial panel PCs and robust computing infrastructure, these locations offer both economic and environmental benefits that are hard to replicate elsewhere.
Why now?
So why the sudden urgency? The data center market is consolidating rapidly as AI and cloud computing demand explodes. Partners Group clearly sees this as the perfect moment to cash out—they bought atNorth just over two years ago and already stand to make a significant return. Meanwhile, Digital Realty and Equinix can’t afford to let their main competitor grab these strategic assets. Missing out on this acquisition could mean playing catch-up in key European markets for years. The timing feels almost desperate, doesn’t it?
Bigger picture
Look, this isn’t just about adding a few data centers. It’s about controlling the infrastructure that will power Europe’s digital future. AtNorth’s focus on high-performance computing and sustainable operations makes them particularly valuable as energy costs soar. The fact that they recently sold their HPC-as-a-service unit Gompute suggests they were cleaning house for exactly this kind of sale. Ultimately, whoever wins this bidding war gets to dictate terms in markets where competition is still relatively thin. And in the data center business, geographic reach is everything.
