This article first appeared in TMT Finance on October 5, 2026.
In our 2027 Data Center Market Outlook, drawing on surveys of nearly 500 senior executives across the US, Europe, and the Middle East, not a single respondent said M&A activity was "not on the horizon." In fact, 85% stated they are likely to participate in carve-out or sale-leaseback transactions within the next two years.
Three questions will determine how M&A activity shapes this market: How fast do deals happen, who moves first, and which assets will actually find buyers?
Telcos are cashing out, but the exit is harder than it looks
The single most anticipated driver of M&A activity is telco monetization of data center assets, cited by 73% of respondents. In Europe, where deleveraging pressure is most acute, this rises further. 84% in France and 82% in Germany expect telco-driven deal flow to define the next wave of transactions. In the U.S., the share is lower at 69%, but still significant.
