Colocation M&A Trends in 2021: Long-Term Leases from Hyperscalers Attract Private Equity Investment in Datacenters

Colocation M&A Trends in 2021: Long-Term Leases from Hyperscalers Attract Private Equity Investment in Datacenters

This IDC Market Perspective provides an overview and analysis of datacenter mergers and acquisitions disclosed in the year 2021. IDC expects to continue further consolidation in global datacenter segment especially from the largest vendors like Equinix and Digital Realty Trust to consolidate smaller players in the market and expand their reach and ability to help enterprises connect with their customers through various applications ranging from digital marketing to ecommerce. Participation of private equity investment firms will also be in the rise as they come with a financial might that plays an overly critical role in shaping up expansion strategy for any datacenter service provider."The capital-intensive datacenter services market is experiencing steady growth and profitability, which is appealing to private equity and asset management companies," according to Courtney Munroe, research vice president, Worldwide Telecommunications Research at IDC. "With substantial consolidation of the tier 1 global companies, midtier companies have become prime targets, and this trend will continue over the next 18 months."

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