Datacenter market growth sparks $73 billion in M&A deals

Datacenters have become a booming market, with mergers and acquisitions (M&A) reaching a staggering $73 billion in value in 2024. According to updated figures from Synergy Research Group, this number surpassed previous estimates due to a significant deal involving a Blackstone-led purchase of AirTrunk, an Australian hyperscale data center company with operations in the Asia-Pacific and Japan regions. This deal alone was worth almost $16 billion.

The datacenter market experienced its highest point in 2022 in terms of M&A activity, with total deals valued at $52 billion. However, this dropped in 2023 to $26 billion before surging back up to $73 billion in 2024. Looking ahead to 2025, Synergy reports that over $7 billion worth of deals have already been approved, with an additional $15 billion in agreements pending closure. This indicates a strong start for the first quarter of the year, potentially reaching $22 billion, almost matching the total deals for 2023. Moreover, there are over $20 billion worth of potential deals in the pipeline as companies seek new funding sources or explore strategic options.

Since 2015, Synergy has recorded a total of 1,514 takeovers in the datacenter market, amounting to $324 billion in value. While most of these transactions involve company acquisitions, the figures also include equity investments, joint ventures, acquisitions of individual datacenters, and land purchases for new facilities.

The rise in M&A activity over the last decade has been fueled by the growing demand for cloud services and applications, particularly driven by generative AI technologies. Private equity funding has played a significant role in this trend, accounting for a substantial portion of sales in recent years. This investor interest signals confidence in the sector’s potential for high returns.

John Dinsdale, chief analyst at Synery Research, highlights that in addition to cloud computing, social networking, and various digital services have further increased the need for datacenters. With generative AI technologies gaining momentum, demand for data centers shows no signs of slowing down, indicating that 2025 could be another strong year for M&A activity in the sector.