Colocation Segment Trends: M&A Drives Datacenter Investment

Colocation Segment Trends: M&A Drives Datacenter Investment

This IDC Market Note reviews colocation service provider mergers and acquisitions in the datacenter space across the globe during 2021–2022. Datacenters are important components of the digital infrastructure. However, it's a capital-intensive effort. Hyperscale cloud providers and network operators look to colocation providers as a cost-effective, scalable solution to complement their own assets."Private equity funding of the wholesale segment is a necessary development to move the industry forward," according to Avinash Naga, research manager, Hosting and Colocation Services, IDC. The mergers and acquisitions trend will continue to reshape the digital infrastructure segment.

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