AI boom drives data-center dealmaking to record high, says report

Core Insights - Global data-center dealmaking reached a record high through November 2023, driven by the increasing demand for computing infrastructure due to the rise of artificial intelligence [1][3] - The total value of data center transactions was just under $61 billion, surpassing the previous record of $60.81 billion set in 2024 [3] - The surge in interest is primarily fueled by tech giants and AI hyperscalers planning significant investments to expand their infrastructure [2] Investment Trends - Data center investments, including mergers and acquisitions, asset sales, and equity investments, totaled nearly $61 billion by the end of November 2023 [3] - Since 2019, the U.S. and Canada have seen approximately $160 billion in data center dealmaking, while Asia-Pacific and Europe accounted for nearly $40 billion and $24.2 billion, respectively [3] Market Dynamics - Financial sponsors, particularly private equity firms, are showing high interest in data center assets due to their favorable risk/reward profile [4] - There is a scarcity of high-quality data center assets available for sale, as private equity firms are generally more inclined to buy than to sell [4]