Data center mergers and acquisitions (M&A) set a new record in 2024, with total deals exceeding $73 billion, according to an updated report by Synergy Research Group. The revised figure surpasses the previously reported $57 billion by $16 billion, marking a historic milestone for the sector.
Closing the Year with a Landmark Deal
A significant portion of this record was driven by the Blackstone-led acquisition of AirTrunk, which closed in late December. Valued at nearly $16 billion, this acquisition has become the largest data center deal ever completed, setting a new industry benchmark.
Major Investments in 2024
Several other noteworthy transactions contributed to this unprecedented year:
- Vantage Data Centers received two separate equity investments totaling $9.2 billion, including $3.1 billion directed toward its EMEA operations.
- EdgeConneX and DataBank secured substantial equity investments, further highlighting the sector’s growth trajectory.
Historical Context: Peaks and Valleys in M&A Activity
The $73 billion figure dwarfs the previous record of $52 billion set in 2022, a year defined by two mega-deals—the acquisitions of CyrusOne and Switch—valued at over $11 billion each. In contrast, 2023 experienced a sharp decline, with M&A activity dropping to $26 billion.
When excluding deals worth $2 billion or more, 2021 emerges as the peak year, with subsequent declines of 32% in 2022, 7% in 2023, and a remarkable 133% surge in 2024.
Outlook for 2025: Momentum Continues
The momentum appears to be carrying into 2025. Synergy Research Group reports that over $7 billion in deals have already closed this year, with another $15 billion agreed but yet to be finalized.
The Role of Private Equity in Data Center M&A
Private equity has played a dominant role in data center M&A since 2021, accounting for 80% to 90% of the total value of closed deals. This influx of private equity underscores the sector’s attractiveness to investors.
The Stargate Project: A Glimpse Into AI Infrastructure Investment
In an adjacent development, OpenAI recently announced “The Stargate Project,” a $500 billion initiative aimed at building AI infrastructure over the next four years. Of this, $100 billion will be deployed immediately. Key equity investors include SoftBank, OpenAI, Oracle, and Abu Dhabi’s MGX.
FAQ: Common Questions About Data Center M&A
What was the largest data center deal in 2024?
The Blackstone-led acquisition of AirTrunk, valued at nearly $16 billion, was the largest deal of the year and the biggest in industry history.
How does 2024 compare to previous years in data center M&A?
The total value of deals in 2024, at $73 billion, significantly surpassed the previous record of $52 billion in 2022 and marked a 133% increase from 2023’s $26 billion.
What role does private equity play in the data center industry?
Private equity has been a major driver of M&A activity, contributing 80% to 90% of the total deal value since 2021.
Which companies received significant investments in 2024?
Vantage Data Centers, EdgeConneX, and DataBank were among the key recipients of substantial equity investments.
What is the outlook for data center M&A in 2025?
More than $7 billion in deals have already closed, with an additional $15 billion agreed upon but not yet finalized, indicating continued strong activity.
