LINCOLN PERSPECTIVE

The increasing need for data on a global basis, coupled with investments, like the bipartisan Infrastructure Investment and Jobs Act in the U.S. – funding for investments in critical, data center infrastructure – present attractive secular demand drivers within the space. With positive tailwinds contributing to strong growth over the next decade and beyond, there is steady conviction in the sector’s outlook.

There has never been a more alluring time for owners and investors to garner attractive multiples for their data center businesses and buyers are willing to pay all-time high prices given the long-term growth in the sector. There is a unique opportunity in the market for sellers as recent consolidation has led to a limited number of available, high quality investment opportunities in the coveted data center space. Additionally, there is increasing interest from large, multi-national strategics and financial sponsors looking to penetrate or expand their presence in the data center space, which is driving fierce competition in M&A sale processes.

In the last year, Lincoln advised on multiple landmark data center transactions – the sale of CIS Global to nVent, the sale of Anord Mardix to Flex and the growth capital raise for Vantage Data Centers. From these deals, Lincoln has distilled multiple key insights:

If you are contemplating your exit strategy, financing needs or looking at acquiring a player in the data center space, contact a member of Lincoln International’s Energy, Power & Infrastructure team.