Orange Wholesale CEO: We're Not Looking to Sell Data Centers

Why It Matters

By retaining ownership while opening capacity to third parties, Orange can generate recurring revenue and strengthen its position in the growing European cloud market. The expanded cable‑ship fleet also safeguards network resilience amid rising subsea‑cable demand.

Key Takeaways

• Orange Wholesale won't sell its data centre assets.
• Company aims to monetize via colocation services.
• Portfolio includes ~75 data centres across EMEA.
• New subsea cable‑repair ships scheduled for 2028‑29.
• Limited global cable‑ship fleet may constrain network growth.

Pulse Analysis

The telecom sector is increasingly treating data‑centre portfolios as strategic platforms rather than balance‑sheet liabilities. Operators like Orange, which own a dense network of facilities across Europe, Africa and the Middle East, are pivoting toward service‑based monetisation. By offering colocation and power capacity to third‑party enterprises, they tap into the booming demand for edge computing and hybrid cloud workloads without diluting asset ownership. This approach aligns with broader industry trends where telcos leverage existing real‑estate to create recurring, high‑margin revenue streams.

In France, enterprise demand for secure, high‑density hosting is outpacing supply, prompting Orange to open its top‑tier sites to external customers. The move mirrors the carrier’s earlier strategy of multi‑tenant tower usage, allowing competitors to install equipment on its infrastructure. For Orange Business Services, expanding colocation capacity not only deepens relationships with existing corporate clients but also positions the firm as a credible alternative to pure‑play data‑centre operators. The incremental revenue from space and power leasing can offset capital expenditures while supporting the carrier’s broader digital transformation agenda.

Orange’s investment in two new subsea cable‑repair vessels underscores the importance of end‑to‑end network reliability. With only about 60 cable ships worldwide and many aging, capacity constraints can delay repairs and jeopardise service continuity. By modernising its fleet—targeting deliveries in 2028 and 2029—Orange aims to reduce downtime for its extensive submarine cable portfolio, a critical asset for trans‑continental connectivity. This proactive stance enhances the telco’s resilience, bolsters customer confidence, and may open ancillary revenue opportunities in cable‑maintenance services as global data traffic continues to surge.