According to a recent report by Synergy Research Group, the global market for mergers and acquisitions (M&A) related to data centers reached an unprecedented milestone in 2024, with closed transactions valued at a total of $57 billion. This amount not only well exceeds the previous record of $52 billion set in 2022, but also marks a significant increase following the 50% decline recorded in 2023, when the total fell to $26 billion.
The growth in 2024 was driven by a 131% rise in the value of regular transactions, defined as those under $2 billion, highlighting a notable recovery in the sector after a period of relative slowdown. In addition to the already finalized figures, there are another $29 billion in pending deals and over $15 billion in potential future transactions.
A Decade of Exponential Growth
Since 2015, Synergy has recorded a total of 1,498 data center-related deals globally, accumulating a combined value of $300 billion. These transactions include complete acquisitions, minority investments, purchases of individual data centers, land acquisitions, and the creation of joint ventures.
The prominence of private equity in this market has been a notable feature in recent years. In 2020, private investments accounted for 54% of the total value of closed transactions, rising to 65% in 2021 and maintaining a range of 80-90% since then. This phenomenon reflects the willingness of private investors to finance growth initiatives that, in many cases, specialized operators cannot afford on their own.
The Major Deals of 2024
In 2024, the largest deals were two capital investments in Vantage Data Centers, totaling $9.2 billion. Additionally, Vantage also received $3.1 billion in investments aimed at its operations in EMEA (Europe, the Middle East, and Africa). Other notable deals included significant investments in EdgeConneX and DataBank, consolidating the trend of high activity in the sector.
Market Drivers
The increase in demand for data center capacity has been driven by cloud services, social media, and digital applications for both business and consumer use. More recently, the growth of generative artificial intelligence and its services has added a new level of pressure on data center capacity, intensifying the need for massive investments.
Interest in these operations also responds to the rise of technological models that require greater computational resources, ranging from advanced enterprise applications to real-time entertainment services.
Outlook for 2025
With a pipeline of pending and future transactions estimated at more than $44 billion, analysts expect 2025 to be another record-breaking year for mergers and acquisitions in the data center sector. This continuous growth underscores the strategic relevance of data centers in an increasingly digitized world that relies on robust infrastructure to handle the massive flow of data.
The trend shows no signs of slowing down, making data centers an essential component of the global digital ecosystem and an attractive focus for both private and strategic investment.
via: Synergy