The future of data centers looks bright as operators continue to expand to meet demand and investors capitalize on the growth potential.

Deal activity is expected to be driven by M&A at the company level, according to Tan.

“Most operators have invested heavily in building their platforms to where they are today,” he says. “They would prefer not to divest individual assets as it would undermine their overall enterprise value.”

Chua echoes this sentiment, anticipating more joint ventures and M&A in the coming years, especially with limited assets available on the market.

“Operators with strong management teams but limited resources and traction will become prime targets for larger platforms for consolidation or acquisition,” she says.