Navigating the data centre boom
Where are the growth hotspots, and what to make of the inconvenient truth?
IN an era of autonomous vehicles, 5G, and artificial intelligence, data is the new oil. And across the globe, data centres are being built at a fast clip and snapped up like hot cakes.
Pitched as offering better-than-average yields compared to other real estate classes, these nondescript buildings are drawing not just developers and operators, but also private equity keen on the seemingly limitless potential of the data sector.
Mergers and acquisitions (M&A) in the data centre sector totalled 130 deals worth US$32.4 billion in 2020, slightly more than double what was sewn up in 2019 (US$15.1 billion across 115 deals), said Synergy Research Group.
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