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Verizon starts to sell its data center assets

The assets for sale include 48 data centers, and generate annual earnings before interest, tax, depreciation and amortization of around $275 million.

assets for saleVerizon Comm. has started to sell its data center assets, hoping to fetch more than $2.5 billion.

A sale would be the latest effort by Verizon to streamline its portfolio and would also mark a reversal of its strategy to expand in hosting and colocation services after it acquired data center operator Terremark Worldwide Inc in 2011 for $1.4 billion.

The assets for sale include 48 data centers, and generate annual earnings before interest, tax, depreciation and amortization of around $275 million.

The enterprise telecommunications industry has had to adapt in recent years to corporate customers seeking more sophisticated and cheaper offerings to manage their data. Verizon joins a host of its rivals in telecommunications who are shedding their data centers.

Verizon has been facing stiff competition from companies such as T-Mobile US Inc TMUS.N and Sprint Corp (S.N), which have been offering deep discounts on cellphone and data plans.

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