Sungard Availability Services: After taking on the 4D and Sungard data centers, UK MSP Redcentric incurs a loss

After acquiring several data centers last year, UK-managed services company Redcentric is feeling the impact of rising energy bills. The corporation will close a Harrogate, Yorkshire, data center, has negotiated fixed energy pricing for the next year, signed new energy deals with clients, and is cooling multiple sites. The corporation reported increasing revenues but a deficit in its preliminary results for the year ended 31 March 2023 this week. Revenue rose to £141.7m from £93.3m, although operating losses fell to £8.9m from £6.6m in FY 2022. Net debt rose from £16.6m to £73m.

Redcentric acquired 4D Data Centres, Sungard Consultancy, and Sungard Data Centres last year. The company stated those purchases, plus the acquisitions of Piksel and 7 Elements the year before, brought over 600 clients. After the acquisitions, which added four data centers and leased space in at least two more, Redentric said electricity costs are of “material importance” to the company's financial performance. It previously called Sungard installations “extremely energy inefficient.”

The company's FY25 electricity costs could drop from £25.5m to £17.6m. This saving will enhance profitability by £7m because most come from former Sungard customers on fixed-price contracts. Redcentric bought three Sungard sites in Hounslow, Woking, and Elland during its bankruptcy last year. It also bought 4D, which maintained a Byfleet data center and leased space at London's Telehouse and Maidstone's Custodian facilities.

Redcentric operated four UK data centers in Harrogate, London, Reading, and Cambridge with over 50,000 sq ft (4,650 sqm) before these purchases. Redcentric bought the London City Lifeline data center for £4.8m ($6m) in 2016.