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Deutsche Bank's Arm Plans Sale of NorthC Data Center Platform

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Key Takeaways

  • {\"0\":\"Deutsche Bank\'s DWS arm is preparing to sell data center platform NorthC for over 2 billion euros.\",\"1\":\"The sale follows recent NorthC acquisitions that expanded its European data center footprint.\",\"2\":\"DB\'s arm is reshaping its alternatives strategy, shifting focus toward infrastructure investments.\"}

Deutsche Bank AG’s (DB - Free Report) asset management arm, DWS, is preparing to sell its majority-owned data center platform, NorthC, for a potential valuation of more than €2 billion. This was first reported by The Financial Times, citing people familiar with the matter.

NorthC, formed in 2020 through the merger of the Datacenter Group and NLDC, operates more than 20 regional, carrier-neutral sites across the Netherlands, Germany and Switzerland, serving IT service providers, government agencies and healthcare organizations.

The decision to initiate the sale follows NorthC’s recent acquisition of six data centers in Germany and the Netherlands from Colt Technology Services. Another DWS majority-owned provider also purchased two London facilities from Colt, further strengthening the group’s European presence.

Reasons Behind DB’s Divestiture of NorthC

DWS, with about €1 trillion in assets under management, has been reshaping its alternatives strategy. In recent years, the firm has faced challenges in attracting fresh inflows into its alternatives arm. Chief executive of DWS, Stefan Hoops, responded that the company has shifted focus toward infrastructure investments, supported by Berlin’s push to channel significant capital into the sector.

By initiating the sale of NorthC, DWS is aiming to monetize a fast-growing digital infrastructure business at a time when valuations are attractive. The European data center market is booming, fuelled by surging demand from artificial intelligence and cloud adoption. Long-term contracted revenues and utility-like returns have drawn strong interest from private equity firms, pension funds and institutional investors.

Our Take on DB’s Strategy

The impending NorthC divestiture reflects Deutsche Bank and its asset management arm, DWS’ strategic response to growing investor interest in digital infrastructure. By executing the sale, the company can improve fundraising prospects. The proceeds can then be redeployed into new projects aligned with long-term growth priorities. This approach positions DB to benefit from structural trends in digital infrastructure while focusing on growth areas such as AI-driven infrastructure and expanded data capacity.

DB’s Zacks Rank & Price Performance

In the past six months, shares of Deutsche Bank have gained 44.5% compared with the industry’s 23% growth.

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Currently, DB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Finance Firms

In August 2025, Affiliated Managers Group, Inc. (AMG - Free Report) agreed to offload its interest in Comvest Partners’ private credit business to Manulife Financial Corporation. The all-cash transaction, valued at nearly $285 million, is expected to be closed in the fourth quarter of 2025, subject to customary closing conditions.

As part of the transaction, AMG will realize a significant gain on its investment. It will retain an interest in the carry from certain existing private credit funds, a share of Comvest’s invested capital in those funds and will continue to hold its stake in Comvest’s private equity business. Additionally, the company will divest its interest in the AMG Comvest Senior Lending Fund joint venture.

In May 2025, Citigroup Inc. (C - Free Report) , through its subsidiary Citibank Europe Plc, announced that Citi Handlowy had reached an agreement to sell its consumer banking business in Poland to VeloBank S.A. This transaction aligns with Citigroup’s broader strategy to exit consumer banking and strengthen its focus on core operations.

The agreement between C and Velobank entails the demerger of Citi Handlowy’s consumer banking operations — including wealth management, micro business banking, credit cards, consumer loans, deposits, assets under management, brokerage clients, branches and other consumer-related assets — to VeloBank. Notably, employees and branches of consumer business will also transition to VeloBank upon completion of the transaction.


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