A frenzy of mergers and acquisitions is sweeping the Asia-Pacific data center market, driven by strong demand and limited availability.
Recent high-profile deals include Blackstone’s AU$24 billion ($16 billion) acquisition of Australian data center platform AirTrunk — the largest-ever data center company deal — and DigitalBridge’s acquisition of Yondr Group, a global developer and operator of hyperscale data centers.
More deals on the horizon
The future of data centers looks bright as operators continue to expand to meet demand and investors capitalize on the growth potential.
Deal activity is expected to be driven by M&A at the company level, according to Tan.
“Most operators have invested heavily in building their platforms to where they are today,” he says. “They would prefer not to divest individual assets as it would undermine their overall enterprise value.”
Chua echoes this sentiment, anticipating more joint ventures and M&A in the coming years, especially with limited assets available on the market.
“Operators with strong management teams but limited resources and traction will become prime targets for larger platforms for consolidation or acquisition,” she says.