Looking back and forward: The definition of the NorthC DNA

Datacentered spoke exclusively with Alexandra Schless, CEO of NorthC Datacenters, about the fifth anniversary of the regional data center operator, the industry, and the NorthC Datacenters DNA.

TEXT: Pim Kokke

Pim Kokke: “Five years of NorthC Datacenters is a wonderful milestone.”

Alexandra Schless: “Absolutely! We should take a moment to reflect on this anniversary. We often find ourselves caught up in daily ambitions and goals, but it’s important to pause and recognize significant moments, such as our initial acquisitions, the migration and integration of the new organization, and our early steps in Germany and Switzerland. During these reflective moments, we can ask ourselves: What are the highlights of the past five years, and what lessons have we learned from these experiences?”

Pim Kokke: “Can you take us through the beginning of the merger between The Datacenter Group and NLDC?”

Alexandra Schless: “Yes. DWS, our largest investor, was in the process of acquiring The Datacenter Group and NLDC. During this process, they approached me and presented their plans. It was their first investment in data centers, and I saw the potential in the plans, because I believed in the potential of the market segment and growth of regional data centers.”

On October 1, 2019, the integration of both companies into one organization started. In February 2020, we officially launched the name NorthC Datacenters.

Schless talks about the initial introductions and the first few weeks, which are mainly about getting to know the people in the organizations. Plans for future growth are being prepared and presented to the team. Schless: “This was an intensive process for everyone because many changes occurred. You have to guide people in your vision and share the spot on your horizon and the steps needed to get there. That provided a framework for myself and the organization.”

Pim Kokke: “What was that spot on the horizon five years ago?”

Alexandra Schless: “I strongly believed there were interesting market opportunities for regional data centers. Our spot on the horizon was and is to become the leading platform of regional datacenters in the Benelux and DACH region. We started in the Netherlands and have since expanded through various acquisitions across multiple regions. Building a solid foundation for the organization to grow is very important in my opinion. So in 2020, we focused on building this foundation and in 2021, we did our first takeover in Germany, followed by a second and third takeover in 2022 and 2023 in Switzerland. During the past five years we have accomplished a lot as an organization and we’ve built a company with 16 data centers in 11 regions. And we are still expanding our platform.”

Pim Kokke: “What were the highlights of the past five years?”

Alexandra Schless: “The highlights certainly include our acquisitions and their integration into NorthC Datacenters. Acquiring a company is one thing, but ensuring successful integration into the existing organization is essential.”

Pim Kokke: “But what is the largest challenge in successfully integrating these companies?”

Alexandra Schless: “It may seem straightforward to outline your goals on paper, including workstreams, milestones, and cross-functional processes. However, it’s essential to recognize that you are dealing with individuals who need clear guidance and explanations about the direction you want to take as a unified business. Consider what this acquisition means to them personally or for their teams. Because most of the time they need to adapt to a new DNA for the organization. So it is important to understand the impact and take on the responsibility as a management team to communicate openly and transparently what you want to accomplish and how the company’s core values support the execution plans.”

Pim Kokke: “And what are the important learnings of these moments?”

Alexandra Schless: “Interacting with cultural differences can be challenging. For example, Dutch people are known for their directness and honesty; they typically express their thoughts openly. This straightforwardness is effective in the Netherlands, as it allows everyone to understand where they stand. However, in other countries, communication styles can differ significantly. It’s easy to forget these nuances in the midst of a busy daily schedule, but being aware of cultural differences is crucial for ensuring successful collaboration and integration.”

Pim Kokke: “It is quite an accomplishment to be a regional data center player with a bold global vision. Is that what the NorthC DNA is?”

Alexandra Schless: “Yes, I think so. The NorthC DNA consists of 4 values: open, local, flexible and entrepreneurial. The combination of these four values is the foundation for how we work as an organization and business. Being close to our customers and partners and understanding their challenges, having an open communication both internally and externally, being able to adapt when necessary and running our business as if it were our own. The way we are organized as a company supports our DNA. There is a lot of autonomy with the local teams in the countries, yet at the same time we maintain the spirit of belonging to one entire group. We value the cultural differences; we share ideas between the countries and teams and at the same time we implement consistency in our way of working. The combination of all these elements and values has led to the position where we are now."

Pim Kokke: “The industry is growing so incredibly fast that I sometimes ask myself if this growth will ever end.”

Alexandra Schless: “For the foreseeable future, I believe that growth will continue without interruption. We are in a relatively early stage of integrating AI into our business operations and there is already a growing demand for data center capacity. At the same time, the data center Industry is heavily investing in energy efficiency solutions to cope with the increasing power usage. In some major cities like Amsterdam or Frankfurt we see grid constraints which leads to datacenter operators relocating to the regions around the cities. If companies fully embrace using AI applications as part of their business processes, we can expect an accelerated growth of datacenter demand.”

Pim Kokke: Finally, we look ahead to the future. Where will NorthC Datacenters be in 5 years when it celebrates its 10th anniversary?

Alexandra Schless: “Our ambition in five years is to add several new regions to our platform, and expand in the existing regions where possible. We have further implemented our sustainability strategy. We have an ambition to be carbon neutral by 2030 with several projects already underway and implemented. Finally, I hope, that as the organization has grown over the years, our customers and colleagues still recognize the NorthC DNA.”