Originally posted to Data Center POST
When 2020 was officially ushered out the door, the world had reason to rejoice at the conclusion of a grueling year. And data centers operators are no exception, as they’ve been under incredible strain to support the massive uptick in network traffic and digital solutions needed to keep the world virtually connected.
There’s every indication that recovery from the pandemic is on the horizon. Even so, the Independent Data Center Alliance (IND-DCA) expects five key factors will actually increase dependence upon data centers in 2021 and beyond.
Expect strong M&A activity
Just as we saw in 2020, merger and acquisition (M&A) activity will continue unabated in the data center market in 2021. With 113 acquisitions worth almost $31 billion, 2020 saw a 107% increase in mergers and acquisitions over 2019.
We expect that growth to continue in 2021, driven by the burgeoning demand for cloud services and the subsequent increase in data from applications and smart devices. The fastest, most cost-effective way to grow and meet such demand is through acquisitions.
In fact, just five days into 2021, Databank closed its acquisition of zColo, a deal started in 2020 that’s valued at $1.4 billion. And Bluebird Network announced its acquisition of ColoHub Data Center to strengthen its capabilities and fiber network footprint in Iowa and Illinois.
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