3C and Datalec merge to create a liquid cooling and data center services platform with annual revenue exceeding $400 million.
This integration combines deep expertise in liquid cooling, mechanical and electrical (M&E) engineering, ODM manufacturing, connectivity, and facility management (FM) to provide global data center operators with a single partner for design through operations.
London, October 14, 2026 /PRNewswire/ — 3C, a data center infrastructure services company founded by Steve Walton, former CEO of CoolIT Systems, with a focus on liquid cooling, has merged with Datalec Precision Installations, a London-based data center engineering specialist established in 2012, to form 3C Datalec. The new company will design, build, and operate critical infrastructure for AI data centers.
With new investments from Longbow Capital, S2G Investments, Apogem Capital, and QIC, 3C Datalec will accelerate its international expansion, invest in specialized talent, and enhance its technological capabilities amid growing demand for AI. Over the next 12 months, the company will hire 200 engineers and open new facilities in Warsaw, Poland; Calgary, Alberta, Canada; and Austin, Texas, USA.
The combined business has approximately 1,000 team members and is projected to generate over $400 million in revenue by 2026, with operations and manufacturing facilities across Europe, the Middle East, Asia-Pacific, and North America. The company partners with four of the five largest cloud service providers and more than 25 colocation providers, while also serving neocloud and enterprise customers, with active projects in 16 countries totaling hundreds of megawatts (MW).
As AI workloads increase computational density, power consumption, and thermal complexity, 3C Datalec has structured its capabilities into three pillars:
- Create — Design and Engineering
- Construct—liquid cooling, electromechanical engineering, ODM manufacturing, and connection and installation
- Care — Debugging, Operations, Maintenance, and Facility Management
“Rack densities have exceeded the capacity of air cooling; liquid cooling is no longer an option,” said Steve Walton, CEO of 3C Datalec. “At CoolIT, we’ve spent years preparing for this moment and have become the global leader in liquid cooling. Now, the biggest challenge is ensuring that cooling, power delivery, construction, and operations work together as a unified system while scaling at large volumes. By combining our liquid cooling expertise with Datalec’s engineering, manufacturing, and FM capabilities, we provide customers with a single partner from design through operations.”
The industry is facing a shortage of data center engineers, so 3C Datalec is cultivating talent internally. Team members can access apprenticeship programs, technical training, and career development initiatives through the company’s internal university, and will share in the company’s growth through the Leadership and Employee Equity Program (LEEP). The goal is to train the next generation of liquid cooling and critical infrastructure experts.
"Datalec has always been a people-first company. We've grown by building strong relationships, delivering results for our clients, and cultivating a culture people want to be part of," said Danny Keeper, Director and Co-Founder of the Datalec Group. "Finding a 3C partner that truly shares these values was essential for us. This partnership enables us to expand globally while preserving the culture and identity that have been at our core since Datalec's founding."
“Our clients have entrusted Datalec with their most critical sites for over a decade, and we earn that trust with every project,” added Stuart Richmond, Director and Co-Founder of the Datalec Group. “Joining 3C means we can now offer liquid cooling services at a global scale, but our commitment remains unchanged: the same team, the same contacts, and the same dedication to getting things right for every client.”
Matthew Cunning, Director at Longbow Capital, said: “AI is reshaping the requirements for data center infrastructure, and liquid cooling is at the heart of this transformation. Steve has helped build the category leader in liquid cooling, and Datalec brings a mature delivery business with a loyal customer base. We support 3C Datalec as the preferred partner for AI-ready infrastructure.”
Bala Nagarajan, Managing Director of S2G Investments, said: “The next phase of data center investment will be shaped by both new construction projects and the upgrading of existing facilities to accommodate higher-density workloads. Datalec has built deep trust in delivering complex projects under these conditions, while 3C brings the experience and capability to extend these relationships to a broader range of services across the full lifecycle of the facilities.”
Datalec’s headquarters will remain in London, and its founding management team will continue to hold executive roles within the expanded group. Financial terms were not disclosed.
About 3C Datalec
3C Datalec designs, builds, and operates critical infrastructure for AI and high-density data centers. The company was formed in 2026 through the merger of 3C and Datalec Precision Installations; 3C was founded by Steve Walton, former CEO of CoolIT Systems, while Datalec Precision Installations was established in 2012 and is headquartered in London. The company integrates liquid cooling, electromechanical engineering, ODM manufacturing, connectivity, and facility management around the principles of Create • Construct • Care. With approximately 1,000 team members and active projects across 16 countries, 3C Datalec serves hyperscale cloud providers, managed service providers, neoclouds, and enterprise customers in Europe, the Middle East, Asia-Pacific, and North America. The company is backed by Longbow Capital, S2G Investments, Apogem Capital, and QIC. For more information, visit www.datalecltd.com.
About S2G Investments
S2G Investments is a multi-asset investment firm focused on scaling enduring, market-defining businesses in food and agriculture, energy, and ocean sectors. The company provides capital and value-add resources to commercialize solutions that enhance efficiency, resilience, and long-term value across industries underpinning the global economy. Through tailored financing and a systematic investment approach, S2G is committed to driving measurable, sustainable outcomes via customized solutions spanning late-stage venture capital, growth equity, structured finance, and infrastructure. For more information, visit s2ginvestments.com or connect with them on LinkedIn.
About Longbow Capital
Longbow Capital is a Canadian investment management firm focused on investments in energy, power, industrial, and technology sectors. Since its founding in 1997, Longbow has been a long-term strategic partner and active, effective shareholder in more than 150 high-growth investments. Longbow’s investment track record, extensive network of relationships, and deep understanding of how energy systems operate enable it to identify, evaluate, and invest in opportunities arising from some of today’s most significant social and economic shifts—decarbonization, digital infrastructure development, and deglobalization—where technology-driven transformation is reshaping markets and creating attractive investment opportunities.
About Apogem Capital
Apogem Capital is a leading private markets investment firm in North America, with 35 years of experience in private credit and private equity. As of June 30, 2026, the firm manages approximately $44 billion in assets. Apogem offers comprehensive solutions, including direct lending, private equity funds and co-investments, GP-led transactions and LP secondary transactions, GP equity, and private real assets.
The company employs over 250 professionals, including more than 120 investment professionals. Apogem combines deep industry expertise with the stability and long-term perspective of its parent company, New York Life Insurance Company. Apogem Capital is a wholly owned subsidiary of New York Life through New York Life Investment Management Holdings, LLC. For more information, visit apogemcapital.com.
AUM of 1 billion is an estimated, unaudited figure as of June 30, 2026, and includes non-discretionary and co-advised assets.