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Data centres attracting PE buyers

Increasing demand for data storage and cloud computing services prompted private equity firms to acquire data centres in near-record numbers last year, according to a report by the Wall Street Journal.

Increasing demand for data storage and cloud computing services prompted private equity firms to acquire data centres in near-record numbers last year, according to a report by the Wall Street Journal.

The report cites data from commercial real estate services firm CBRE Group Inc as revealing that tighter supply in the market, coupled with rising construction costs, saw the average monthly rate in primary data-centre markets jump 14.6% last year to $137.90 per kilowatt of power – the first year-on-year increase in pricing since 2017.

According to data from market research firm Synergy Research Group meanwhile, private equity firms accounted for more than 90% of last year’s estimated $48 billion in global data-centre mergers and acquisitions.

Over the past year, 10 of the 12 largest data-centre acquisition deals involved private buyers, according to Synergy, with a total of 187 data-centre-oriented M&A deals competed over the course of the year.
 

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