Data Center Mergers and Acquisitions in 2024: Record-Breaking Year

Another great year in the data center industry! In 2024, we witnessed record-breaking merges and acquisitions, with big deals at the top end of the market, as well as numerous smaller transactions that hinted at exciting developments within the industry as a whole.

According to Synergy Research Group, after a bit of a slowdown in 2023, data center-oriented M&A was back on the rise, matching the highs of 2021 and 2022. John Dinsdale, chief analyst and research director at Synergy Research Group, shared in December that the total value of closed deals in 2024 reached $50 billion, with more deals expected to close by the end of the year. It’s safe to say that 2024 will likely set a new record for the value of data center-oriented M&A activity.

AirTrunk made headlines in September by setting a new record for the largest-ever data center deal. Blackstone and the Canada Pension Plan Investment Board (CPP) acquired AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board for an enterprise value of over AU$24 billion (US$16.11bn). This deal surpassed KKR and GIP’s previous record of $15 billion acquisition of CyrusOne in 2021. AirTrunk, founded in 2016, has been a key player in developing hyperscale data centers across the Asia-Pacific region, with locations in Australia, Hong Kong, Japan, Malaysia, and Singapore.

Amazon made waves in 2024 by acquiring the Cumulus data center campus adjacent to the Susquehanna nuclear power station in Pennsylvania from Talen Energy for $650 million. This move marked an interesting shift towards nuclear-powered data centers, as companies like Amazon, Microsoft, and Google explore alternative ways to meet their growing energy needs without compromising sustainability goals.

In Australia, investment firm HMC Capital flexed its muscles by acquiring Global Switch’s Australian unit in Sydney, comprising two interconnected data centers, for AU$2.12 billion (US$1.41bn). Additionally, HMC’s purchase of iseek and its seven data centers for AU$400 million ($264m) from Amber Infrastructure showcased the firm’s commitment to expanding its data center portfolio. HMC’s launch of DigiCo Real Estate Investment Trust (REIT) further solidified its presence in the market.

Overall, 2024 was indeed a remarkable year for the data center industry, with several major players making strategic moves to strengthen their positions in the market. It will be interesting to see how these developments shape the industry in the years to come.