Cloud Growth and Outsourcing Fuel Data Center M&A and PE Interest

Aggressive growth of cloud services and outsourcing trends are driving data center operators to seek scale and geographic reach, stimulating M&A. This is attracting increasing private equity investment, and even large public operators are turning to joint ventures with external investors to fund growth.

““The aggressive growth of cloud services and outsourcing trends more generally are fueling a drive for scale and geographic reach among data center operators, which in turn is stimulating data center M&A activities,” said John Dinsdale, chief analyst, Synergy Research Group. “This has been attracting an ever-increasing level of private equity activity as investors seek to benefit from high-value and strategically important data center assets. It is also notable that even the biggest publicly traded data center operators are increasingly turning to joint ventures with external investors to help fund growth and protect balance sheets.””

Signals are extracted from public coverage and print archives and pinned to a verbatim quote, presented as reported by their sources; naming a company in a signal is not an accusation against it. The verified mark denotes a high-confidence, corroborated signal. See our methodology and legal notes.