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3C and Datalec merge to form US$400m-revenue AI data centre services group

A liquid-cooling specialist founded by CoolIT's former chief combines with a London data centre engineer, backed by four investors

M&A News deals deskTechnology / Data centre infrastructure services · United Kingdom, Europe14 Oct 2026

3C, the liquid-cooling data centre services company led by former CoolIT Systems chief executive Steve Walton, said on 14 October 2026 that it had merged with London-based Datalec Precision Installations to create 3C Datalec. Terms were not disclosed.

Why 3C (backed by Longbow Capital, S2G Investments, Apogem Capital and QIC) is buying Datalec Precision Installations

3C Datalec said rising rack densities had made liquid cooling essential and that combining 3C's cooling expertise with Datalec's engineering, manufacturing and facilities management would give customers one partner from design to operation of AI data centres.

Deal terms and financing

Financial terms were not disclosed. The combined company is backed by new investment from Longbow Capital, S2G Investments, Apogem Capital and QIC.

Regulatory approvals and timing

The companies announced the merger as completed.

Market context

The combined company works with four of the five largest hyperscalers and more than 25 colocation providers, with projects in 16 countries. It plans to hire 200 engineers over the next 12 months and open facilities in Warsaw, Calgary and Austin. Datalec was founded in 2012.

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