Data centre deals are a gamechanger

Scale, specialism and strategic clarity typify a cluster of data centre deals in Yorkshire

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A wave of strategic deals is reshaping the managed services providers (MSPs), creating new powerhouses, sharper specialisms and a renewed focus on AI-driven innovation. Sheryl Moore looks at how this trend could define the tech economy of the North for the next decade.

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Yorkshire’s technology landscape has a long reputation for ambition and innovation, but 2025 has pushed the region’s managed services providers (MSPs) into one of the most transformative periods in their history.

A cluster of headline-making deals – most notably Harrogate-based Redcentric’s £127m sale of its data centre division and the merger of York’s Trustmarque with Ultima Business Solutions – signals a sector reshaping itself at pace. Scale, specialism and strategic clarity are becoming essential, and Yorkshire is not simply keeping up with the national trend: it is helping to shape it.

For many years, the MSP sector across Yorkshire was marked by a sprawling ecosystem of smaller, highly focused players. These businesses thrived by serving niche needs – whether licensing management, infrastructure support or cloud consulting – at a time when clients were happy to work with numerous suppliers. But that fragmented model is under pressure as technology estates grow in scope and complexity. Organisations now operate hybrid cloud platforms layered over legacy systems, spread across edge computing environments and interconnected with dozens of SaaS applications. Managing that sprawl demands deep capability, broad coverage and significant investment – qualities often found only in larger or well-capitalised MSPs.

This shifting landscape forms the backdrop to Redcentric’s decision to offload its Redcentric Data Centres (RDC) business to Stellanor Datacenters Group for up to £127m. It was one of the most closely watched transactions in the sector this year, not only for its scale but for what it reveals about Redcentric’s strategic direction. The deal’s 15.1x EV/adjusted EBITDA multiple reflects the intense demand for secure, highly capable data centre facilities as AI, automation and real-time computing workloads continue to surge.

Michelle Senecal De Fonseca

Redcentric’s chief executive Michelle Senecal De Fonseca described the sale as a milestone moment. “The completion of the DC sale will allow management to focus squarely on the MSP business which has a very strong brand and market position in both the public and private sectors,” she said. “I am excited at the prospect of driving revenue and margin expansion in the years ahead, which I am confident will deliver strong returns and shareholder value.”

Aparna Narain

Stellanor’s investment partners agreed. Aparna Narain, partner at DWS Group, called the deal transformative for their UK ambitions, saying: “RDC’s well-invested facilities and proven operational excellence align seamlessly with our vision to deliver scalable, secure data centre solutions amid rising demand for edge computing in the UK.”