2017 was an exciting, busy year in the data center industry. “Edge” infrastructure is turning heads, new technologies like Blockchain are emerging, and hyper scale leases continue to fuel explosive cloud growth. But all those things pale in comparison to the effect Mergers and Acquisitions had on the data center landscape in 2017.
Digital Realty & DuPont Fabros had the largest merger deal, valued at $7.6 billion early this year. They were followed by Equinix & Verizon’s deal ($3.6 billion), Cyxtera & CenturyLink ($2.3 billion), and Peak 10 & ViaWest’s deal ($1.7 billion). You can see a more comprehensive list of deals courtesy of JLL here: JLL. Iron Mountain and IO ($1.3 billion) capped the year with a last second deal to end 2017.
Expect M&A velocity to continue in 2018, though perhaps with less of a market cap impact than M&A from 2017. Consolidation will continue to dominate headlines next year.