According to Synergy Research Group, the value of data centre-oriented M&A deals that closed in 2024 hit a record-breaking $57 billion.
This marks a significant recovery after a slowdown in 2023 when deals totalled only $26 billion—a sharp drop from $52 billion in 2022. The surge in 2024 indicates renewed investor confidence in the data centre market.
2024 M&A deals
the biggest deals in 2024 included two equity investments in Vantage Data Centres, totalling $9.2 billion
While 2024 saw an influx of mega-deals, Synergy also highlights a growing pipeline of possible future deals. In addition to the $57 billion of deals that closed, another $29 billion in deals have been agreed upon but are yet to be formally closed.
Synergy also reports how private equity has flooded into the market, accounting for just 54% of the value of closed deals in 2020, rising to 65% in 2021, and remaining in the 80-90% range since then.
No end in sight
John Dinsdale, a chief analyst at Synergy Research Group, observed the tremendous increase in the demand for data centre capacity, saying that cloud services, social networking, and a range of consumer and enterprise digital services drive it.
“There is no end in sight to this trend, with generative AI technology and services adding a further boost to already strong demand…Looking at pending deals and the future pipeline, there is plenty of evidence to suggest that 2025 will be another boom year for data centre M&A,” Dinsdale said.
