The arms race in the area of artificial intelligence is no longer the domain of software alone. The latest figures show that the real battle is now being fought over concrete and silicon. November brought a historic record in the data centre M&A market, confirming that the appetite for computing power is still far from being satisfied.
According to the latest analysis by S&P Global Market Intelligence, the value of deals in the data centre sector has reached $61 billion this year, beating last year’s record ($60.81 billion). Significantly, this barrier broke even before the end of November, driven by more than 100 key deals in the global market. These numbers are not just statistics – they are a clear indication that the infrastructure market is undergoing a structural shift, with access to physical server space becoming as valuable a currency as AI algorithms themselves.
Why it matters
Behind the surge are primarily technology giants and so-called hyperscalers, who are reserving billions of dollars to expand the infrastructure needed to train and operate AI models. It is companies related to artificial intelligence that have been responsible for the lion’s share of this year’s increases in US stock markets. Despite the enthusiasm, analysts are increasingly pointing to growing risks: high asset valuations and debt-financed investments raise questions about how quickly these investments will translate into real operating profits.
Seller’s market
The geographic distribution of capital leaves no illusions about the dominance of North America. As of 2019, the value of transactions in the US and Canada totalled around $160 billion. By comparison, the Asia-Pacific region has attracted close to $40 billion and Europe $24.2 billion in that time.
A key piece of this puzzle is private equity funds. Investors are tempted by the attractive risk-to-reward profile that data centres offer. This situation has led to a peculiar market impasse: funds are keen to buy, but reluctant to sell. This creates an environment of rarity, in which the supply of high-quality assets is severely limited, which further inflates the valuations of the facilities available on the market.
As a result, 2025 ends with a clear message to the industry: owning your own infrastructure or secured colocation contracts is becoming a key competitive advantage, and the barrier to entry in the data centre market has never been higher.
