Ep. 194 Keith Young, VP of Datacenter Services of Arvato

Episode 194 of the Data Center Go-to-Market Podcast features an interview with Keith Young, VP of Datacenter Services at Arvato.

Understand how finance stakeholders can accelerate logistics decisions by quantifying the cost of equipment in transit
Recognize the strategic shift from space/latency to power-driven site selection for AI compute
Identify supply-chain vulnerabilities when expanding into secondary and tertiary data-center markets
Learn Arvato’s playbook for scaling specialized technical logistics globally after acquisition
Discover practical hub-and-spoke warehousing tactics and EOR/IOR approaches for resilience
Appreciate the role of site visits and micro-events in building operational trust with hyperscalers
Grasp how account-based relationships and single-point-of-contact KAMs shape large hyperscaler bids
Explore talent strategies for U.S. expansion, including training academies and retention levers
Analyze procurement versus finance dynamics and how each affects purchase speed and scope
Map how operational excellence and safety culture drive long-term customer confidence
Examine the emerging impact of AI on sales enablement, content, and future talent profiles
Forecast near-term growth priorities for third-party logistics in the data-center ecosystem

Host:

Joshua Feinberg, CEO
DCSMI

Special Guest:

Keith Young, VP of Datacenter Services

Arvato

Overview

Keith Young, VP of Datacenter Services at Arvato, discussed the strategic importance of logistics in the data center industry. He highlighted the role of finance in recognizing the value of transit time and the challenges procurement faces in balancing cost and speed. Young detailed Arvato's acquisition of ATC in 2025, emphasizing the need for global scale and complementary services. He noted the shift from cloud expansion to AI compute capacity, stressing the pressure on supply chains. Young also discussed the importance of trust, operational excellence, and targeted micro-events in building client relationships, particularly with finance executives.

Outline

Finance's Role in Logistics and Supply Chain

Keith Young explains that finance people quickly understand the value of equipment in transit and the high cost of transit time.
Finance people often push for solutions faster than operations people due to the opportunity cost of not deploying hardware.
The supply chain's evolution varies by customer, with some having more sophisticated processes.
Procurement can be a challenge as they focus on driving down costs, which sometimes conflicts with the need for speed and quality.

Introduction and Transition to Arvato

Joshua Feinberg introduces Keith Young, VP of Datacenter Services at Arvato, and discusses his transition from a family-run logistics firm in Ireland.
Keith Young explains the rationale for the acquisition of ATC by Arvato, highlighting the need for global scale and complementary services.
The transition involved finding a cultural fit and ambition to expand globally, with Arvato already being a customer.
The integration process began in January 2025, with initial operations in the US and consolidation in Europe.

Impact of Decentralization on Data Center Logistics

Keith Young discusses the shift from cloud expansion to AI compute capacity, which has increased the demand for power and space.
Hyperscalers are now hoovering up power in remote locations, putting pressure on traditional supply chains.
The race for power and space is changing the landscape, with new data center regions emerging in secondary and tertiary markets.
Service providers like Arvato need to build resilience and speed in their supply chains to meet these new demands.

Challenges and Opportunities in Scaling Operations

Joshua Feinberg asks about the challenges of scaling operations from Europe to the American Midwest.
Keith Young highlights the need for legal immigration, competitive compensation, and training academies to retain talent.
The different work culture in the US, with higher turnover rates, requires a focus on career progression and development opportunities.
The success of the initial team in the Midwest is demonstrated by promotions and expansion to new regions.

Building Trust and Expertise in Global Supply Chains

Joshua Feinberg and Keith Young discuss the importance of buyer education and trust in modern sales cycles.
Arvato leverages insights from top hyperscalers to improve operational excellence and build trust with customers.
The role of finance people in understanding the value of equipment in transit is emphasized.
Procurement can be a challenge, but the focus is on finding the right price and managing costs effectively.

The Role of Micro Events and Site Visits

Joshua Feinberg and Keith Young discuss the value of micro events and site visits in building relationships and demonstrating capabilities.
Micro events allow for deeper, focused conversations and are more effective than large-scale conferences.
Site visits to data centers or warehouses provide hands-on experiences and build trust with customers.
The importance of reinvesting in the business and focusing on the right investments is highlighted.

The Impact of AI on Sales and Marketing Strategies

Joshua Feinberg and Keith Young discuss the impact of AI on sales and marketing strategies.
AI tools are changing the way companies optimize for SEO and respond to queries.
The importance of maintaining relationships and being responsive to customer needs is emphasized.
The role of AI natives in the workforce is expected to grow, with new roles potentially opening up in the future.

Future of Third-Party Logistics and Data Center Business

Joshua Feinberg asks about the future of third-party logistics and data center business for Arvato.
Keith Young expects the global footprint to expand, with new regions and countries emerging.
The size of the organization will increase, and the focus will be on building talent and capability.
The impact of AI and the need to manage growth carefully are key considerations for the future.

Conclusion and Contact Information

Joshua Feinberg thanks Keith Young for the insightful discussion and provides information on how to follow Arvato's work.
Keith Young emphasizes the importance of LinkedIn for staying updated on Arvato's activities.
The conversation concludes with a reminder of the importance of trust, expertise, and relationships in the data center industry.

Guest Resources

Resources

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Data Center Go-to-Market Podcast, Data Center Go-to-Market Podcast | Guest Interview

Ep. 194 Keith Young, VP of Datacenter Services of Arvato | Data Center Go-to-Market Podcast