The AI boom is fueling a surge in mergers, acquisitions, and investments in data centers across Asia Pacific, with the region leading global dealmaking activities. Major players like Blackstone and Microsoft are making significant investments to meet the rising demand for digital infrastructure. Asia Pacific’s data centeThe AI boom is driving a surge in mergers, acquisitions, and investments in data centers across the Asia Pacific region.
Private equity investors and asset managers are gearing up for billions of dollars in deals to meet the growing demand for digital infrastructure. The region has already seen significant dealmaking activities this year, with a total M&A value of $840.47 million, more than half of the global amount, according to LSEG data. Last year, data center deals in Asia Pacific reached a record $3.45 billion, a figure expected to be surpassed in 2024 with several large transactions in the pipeline.
Global investment firm Blackstone is among those eyeing AirTrunk, which owns 11 hyperscale data centers in the region. AirTrunk’s current owners, Macquarie Group and Canada’s Public Sector Pension Investment Board, aim to value the business at up to A$15 billion ($9.8 billion), potentially making it Asia’s largest data center transaction this year. Meanwhile, Microsoft has announced significant investments in Malaysia, Thailand, and Indonesia to expand its cloud and AI services, reflecting a broader trend of tech giants increasing their data center capacities in Asia.
Other potential deals include Telkom Indonesia’s $1 billion stake sale in its data center business and Japan’s NEC considering a $500 million data center sale. U.S. investment firm Bain Capital is seeking financing for Chindata’s international assets and investments for its China business. Goldman Sachs Asset Management, which previously invested in AirTrunk, continues to deploy substantial funds for data center development in Asia, focusing on Japan and South Korea.
The AI revolution is creating unprecedented demand for high-quality data center capacity, and experts predict that deal flow in this space will intensify throughout 2024.r deals have already reached $840.47 million this year, and experts predict this figure will surpass last year’s record.
