Synergy Research report finds data center M&A has already surpassed 2019


At a time the place the entire information appears to level towards detrimental financial exercise, Synergy Analysis launched a report right this moment that knowledge middle M&A exercise made a strong showing this quarter, already surpassing 2019 ranges.
The surge was largely associated to the $8.four billion Interxion acquisition by Digital Realty, which Synergy says was the biggest knowledge middle deal ever. It pushed the deal complete this quarter to nearly $15 billion on 28 closed offers.
2017 was one of the best yr ever since Synergy has tracked these offers with greater than $20 billion buying and selling arms. That document may simply be inside attain this yr if this stage of funding continues.

In fact, within the present financial scenario, there isn't a assure that can occur, however it's clear that cloud utilization goes sturdy and knowledge middle demand is one thing that’s not more likely to abate any time quickly. In truth, Synergy’s chief analyst John Dinsdale believes the numbers will proceed to climb with tons extra offers prepared to shut quickly. He says that ought to make it a bumper yr for knowledge middle M&A exercise.
“In lower than 4 months, the M&A price has already surpassed 2019, along with which we're conscious of 17 extra agreed offers which might be pending closure plus a number of different potential multi-billion greenback offers,” Dinsdale mentioned in a press release.
He added, “Outsourcing traits and the aggressive progress in cloud providers are driving ever-growing demand for knowledge middle capability, which in flip is fueling each trade restructuring and a necessity to search out new sources of funding capital.”
Synergy has been monitoring the info middle M&A market since 2015. Since that point, it has recognized 388 offers totaling over $90 billion. Appears like that quantity is just going to continue to grow this yr despite exterior financial elements.

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