CyrusOne CEO Abruptly ‘Separates’ From Data Center Standout

Just one year into his role as president and CEO of CyrusOne, Bruce Duncan suddenly departs from the global data center provider.

One of the largest data center operators in the world has suddenly lost its president and CEO just one year into his tenure with the departure of CyrusOne’s Bruce Duncan.

The Dallas-based data center provider hired Duncan, who was previously a real estate veteran with no data center industry experience, to lead CyrusOne in July 2020. CyrusOne’s board of directors said it has “separated” with Duncan as CEO along with his resignation as director of the company.

CyrusOne is a top 10 global data center provider that owns roughly 2 percent of the worldwide market, according to research firm Structure Research. The company’s stock is down 13 percent to $72.62 per share as of Aug. 2 compared with one year ago.

CyrusOne has appointed its co-founder and former CEO, David Ferdman, as its interim president and CEO as CyrusOne now searches for a permanent leader. Ferdman was previously president and CEO of CyrusOne from 2000 to 2011 with plans to serve as its interim leader until a new successor is hired.

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“On behalf of the entire Board, I would like to thank Bruce Duncan for his leadership over the past year, and we wish him well in his future endeavors,” said Lynn Wentworth, chair of the CyrusOne board of directors, in a statement. “We are confident Dave will lead our company forward towards achieving its plan and objectives during this transition period.”

The data center provider has been shuffling its leadership over the past several years with Duncan last year replacing former CEO Tesh Durvasula. Prior to joining CyrusOne, Duncan held CEO and director positions in public companies including Cadillac Fairview Corp., Equity Residential, Starwood Hotels & Resorts Worldwide and First Industrial Realty Trust.

The data center REIT (real estate investment trust) specializes in design, construction and operation of data centers with more than 50 across the globe.

Interim president and CEO Ferdman said he plans to continue to execute CyrusOne’s strategy of delivering data center solutions for its customers in key markets in the U.S. and Europe, while also searching for a new permanent leader.

“I look forward to working with our team as we execute on our plan and create shareholder value, while working with the Board to evaluate potential successors,” Ferdman said in a statement.

The news of Duncan’s departure comes as CyrusOne reported its second fiscal quarter earnings a few days ago. The company generated $285 million in revenue, an increase of 11 percent year over year. Net income fell 84 percent year over year to just $7.4 million.

CyrusOne leased 21 MW and 345,000 square feet of colocation in its second quarter, totaling $42 million in annualized revenue, with a backlog of $129 million in annualized revenue representing over $1 billion in total contract value.

CyrusOne currently has 1,000 customers, including 200 Fortune 1,000 companies, offering colocation, hyperscale and build-to-suit environments.