3C and Datalec Merge to Build Vertically Integrated Data Center Platform
AI-generated image · Bay Street Wire
Steve Walton's liquid-cooling startup joins forces with UK-based Datalec to capture the full data center value chain amid surging compute demand.
The merger of liquid-cooling startup 3C and the UK-based Datalec Precision Installations represents a strategic shift toward vertical integration in the data center sector, as BetaKit first reported. Announced on Oct. 14, the combined entity will operate as 3C Datalec.
By combining 3C’s specialized liquid-cooling infrastructure services with the engineering capabilities of Datalec, the new company is positioned to design, build, and operate data center infrastructure. Steve Walton, who previously served as CEO of CoolIT Systems, will lead 3C Datalec as CEO. Walton noted that liquid cooling has become a necessity, stating that the primary challenge now is integrating cooling, power, construction, and operations into a single system.
Walton's track record in the sector is highlighted by his time at Calgary-based CoolIT Systems, which was acquired by Minnesota-based Ecolab in March for $4.75 billion USD ($6.5 billion CAD). BetaKit reports that Walton's leadership helped facilitate that transaction, which stands as one of the largest acquisitions in the Alberta tech ecosystem. Following his departure from CoolIT in 2024, Walton founded 3C to assist data centers in transitioning from air cooling to closed-loop, liquid cooling systems.
Backed by a group of venture capital firms including Apogem Capital, Longbow Capital, QIC, and S2G Investments, 3C Datalec is targeting annual revenues of $400 million USD. The company currently manages projects across 16 countries. To support its growth, 3C Datalec plans to hire 200 engineers over the next year and open new facilities in Warsaw, Austin, and Calgary, as reported by BetaKit.