3C merges with Datalec to form AI data centre group

3C has merged with Datalec Precision Installations to form 3C Datalec. The combined business expects revenue of more than USD $400 million in 2026.

The deal combines 3C's liquid cooling business with Datalec's data centre engineering, manufacturing and facilities management operations. The new group designs, builds and operates infrastructure for AI and high-density data centres.

Longbow Capital, S2G Investments, Apogem Capital and QIC have provided new investment. Financial terms were not disclosed.

3C Datalec has about 1,000 employees and active projects in 16 countries. It works with four of the five largest hyperscalers, more than 25 colocation providers, and neocloud and enterprise customers.

The company has organised its business into three areas: design and engineering; construction and installation; and operations and maintenance. Its services span liquid cooling, mechanical and electrical engineering, ODM manufacturing, connectivity installation, commissioning and facilities management.

Hiring plan

Over the next 12 months, the group plans to hire 200 engineers and open new facilities in Warsaw, Calgary and Austin. Datalec's headquarters will remain in London, and its founding leadership team will stay in executive roles in the enlarged group.

Steve Walton, chief executive officer of 3C Datalec and former chief executive officer of CoolIT Systems, said the merger is intended to align cooling, power, construction and operations more closely as data centre requirements change.

"Rack densities have outgrown air, and liquid cooling is no longer optional," Walton said.

"At CoolIT, we spent years preparing for this moment and became a global leader in liquid cooling. The hard part now is making cooling, power, construction and operations work as one system while running at scale. We're combining our liquid cooling expertise with Datalec's engineering, manufacturing and FM capabilities so customers have one partner from design to operation."

To address a shortage of skilled data centre engineers, the company will use internal training, apprenticeships and career development programmes. Staff will also participate in its Leadership & Employee Equity Program.

Leadership continuity

Datalec's founders said the transaction will allow the business to expand internationally while keeping its existing leadership structure and operating culture.

"Datalec has always been a people-first business. We've grown by building strong relationships, delivering for our customers and creating a culture that people want to be part of," said Danny Keeper, group director and co-founder of Datalec.

"Finding a partner in 3C that genuinely shares those values was extremely important to us. This partnership allows us to grow globally while protecting the culture and identity that have been at the heart of Datalec since day one."

Stuart Richmond, group director and co-founder of Datalec, said customer relationships would continue under the new structure.

"Our customers have trusted Datalec with their most critical sites for more than a decade, and we earn that trust on every project," Richmond said.

"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."

Investor backing

Investors in the combined company said the tie-up reflects a shift in data centre design as AI workloads increase power demand and thermal complexity.

"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.

"Steve helped build a category leader in liquid cooling, and Datalec brings a proven delivery business with a loyal customer base. We're backing 3C Datalec to become the partner of choice for AI-ready infrastructure."

S2G Investments said both new data centre construction and upgrades to existing sites are driving spending in the sector.

"The next phase of data centre investment will be shaped by both new development and the need to upgrade existing facilities for higher-density workloads," said Bala Nagarajan, managing director at S2G Investments.

"Datalec has built deep trust by delivering complex projects in that environment, and 3C brings the experience and capabilities to extend those relationships into a broader set of services across the life of a facility."