The private equity sector has made significant investments in the data center industry in 2024, driven by the increasing demand for cloud computing, digital infrastructure, and global connectivity, according to PitchBook data.
Among the largest deals, AirTrunk secured the top spot with a $16 billion buyout involving Blackstone and the Canada Pension Plan Investment Board on September 4.
Following closely, Vantage Data Centers Management Company raised $9.2 billion in a PE growth investment led by DigitalBridge Group, GiantLeap Capital, Pantheon Infrastructure, and Silver Lake on June 13.
DataBank, based in Dallas, attracted $2 billion in PE growth funding from Ardian, AustralianSuper, DigitalBridge Group, and Swiss Life Asset Management on October 15.
EdgeCore Internet Real Estate received $1.9 billion in PE growth investment from Partners Group on September 6, matching the deal size of Echelon Data Centres, which was acquired by Starwood Capital Group for $1.9 billion on February 15.
eStruxture Data Centers was bought out for $1.3 billion by Fengate Asset Management, Pantheon, and Partners Group on June 18. Similarly, ST Telemedia Global Data Centres secured a $1.3 billion PE growth investment from KKR and Singtel on June 1.
Cellnex Austria was acquired for $0.9 billion by EDF Invest, MEAG, and Vauban Infrastructure Partners on August 9, while SummitIG was bought out by SDC Capital Partners for $0.8 billion on April 30. DC BLOX raised $0.7 billion in PE growth investment from Bain Capital Credit and Post Road Group on October 8.
Key Trends
The year saw a balanced mix of buyouts and growth investments, indicating varied strategies among private equity firms.
The deals covered multiple geographies, underlining the global demand for robust data center infrastructure.
AirTrunk’s $16 billion buyout was the standout transaction, demonstrating the scale of private equity interest in the sector.
The year 2024 solidified data centers as one of the most attractive investment classes in the private equity landscape, with momentum expected to continue into 2025.
The year saw a balanced mix of buyouts and growth investments, with global appeal reflected in the diverse geographies covered by these deals. The standout transaction was AirTrunk’s $16 billion buyout, showcasing the immense scale of private equity interest in the data center sector. With such robust activity in 2024, the momentum is expected to continue into 2025, solidifying data centers as a leading investment class in the private equity landscape.
Rajani Baburajan
