Why Data Center M&A Success Depends on Who Runs the Deals

Data center M&A talent has become a core driver of growth across the sector. M&A, mergers and acquisitions, refers to companies buying, selling, or combining businesses and assets. In data centers, M&A is not an occasional tactic. It is one of the primary ways operators and investors scale capacity, secure power, enter new markets, and build long-term value. 

In 2025, data center M&A and investment activity reached a multiyear high. Capital remained available, and investor appetite stayed strong. What constrained growth was execution capacity. Organizations could identify deals and raise funding, but many struggled to staff transactions and integrations at speed. As the market looks toward 2026, predictions increasingly point to the same issue. The availability of experienced data center M&A talent is becoming a defining factor in success. 

This marks a shift in how the sector approaches growth. Deal flow alone is no longer enough. Execution capability now determines outcomes. 

Why M&A matters in data centers 

Data centers operate in a capital-intensive, supply-constrained environment. Organic growth is slow. Power availability, zoning approvals, land access, and construction timelines all limit how quickly new capacity can come online. 

M&A allows organisations to bypass many of these constraints. By acquiring existing operators, portfolios, or development pipelines, buyers gain immediate access to live capacity, secured power, contracted customers, and experienced operating teams. This speed to scale is a primary reason M&A plays such a large role in data center growth. 

Customer demand reinforces this dynamic. Hyperscalers and large enterprises increasingly prefer to work with fewer partners that can deliver consistent service across multiple regions. M&A enables platforms to meet these expectations faster than organic expansion alone. 

For investors, acquisitions also provide diversification. Building portfolios across regions, power markets, and customer profiles reduces reliance on any single site or jurisdiction and helps manage long-term risk. 

2025 confirmed a structural shift in data center M&A 

The activity seen in 2025 reflected a structural change rather than a temporary spike. Transaction volumes increased across hyperscale, colocation, edge, and AI-driven infrastructure. Deal sizes grew, and cross-border acquisitions became routine. Platform consolidation replaced single-asset trades as the dominant model. 

Asset complexity increased alongside volume. Buyers were no longer underwriting simple stabilised facilities. They were evaluating portfolios with development pipelines, land banks, energy strategies, and regulatory exposure. These transactions required deeper sector knowledge and stronger execution discipline. 

As a result, the general transaction experience became insufficient. Organisations increasingly require data center M&A talent with direct sector exposure and repeat execution experience. 

Examples of successful M&A in data centers 

Many of today’s leading data center platforms were built through strategic M&A. Digital Realty’s acquisition of Interxion expanded its European footprint across key markets such as Amsterdam, Frankfurt, Paris, and London, helping transform the business into a global platform.  

Investor-backed platforms also show how focused M&A supports scale. The acquisition of Yondr Group by DigitalBridge and La Caisse strengthened global hyperscale capacity aligned with long-term cloud and AI demand, as outlined in coverage of the Yondr acquisition. 

In each case, success followed clear strategic intent, disciplined execution, and early investment in experienced data center M&A talent capable of integrating assets and delivering value at scale. 

Power, land, and strategic control 

Power access has become one of the most valuable assets in the data center sector. In many regions, securing grid connections can take years. M&A has therefore become a direct path to power and land control. 

By acquiring platforms with existing power agreements, substations, or entitled land, buyers gain long-term optionality. This strategic value often outweighs near-term earnings. Experienced data center M&A talent understands this distinction and evaluates deals with a long-term view. 

The growing connection between power strategy and data center growth is explored further in LVI Associates’ analysis of the roadblocks to data center expansion, which outlines how challenges like power grid pressures, land availability, and infrastructure constraints are shaping investment and development decisions. 

Why data center M&A talent is in short supply 

Demand for data center M&A talent has grown faster than supply. The sector expanded rapidly over the last decade, but the number of professionals with end-to-end deal execution and integration experience remains limited. 

Several factors are driving this imbalance: 

• Most experienced M&A leaders are already embedded within established platforms or funds and are strongly retained 
• Demand has increased at the same time from private equity firms, infrastructure investors, sovereign funds, and strategic operators 
• Few candidates have led multiple data center transactions from origination through integration 
• Hiring talent from adjacent asset classes increases risk due to sector-specific complexity 

Data center M&A also requires specialised knowledge. Leaders must understand real estate, power markets, networks, customer contracts, and regulation. This combination of skills further narrows the candidate pool and increases the cost of a mis-hire. 

2026 predictions put talent at the center 

Looking ahead to 2026, industry predictions consistently highlight talent as a key execution risk. Deal structures are becoming more complex, with more carve-outs, joint ventures, and multi-asset integrations. Investors are placing greater emphasis on post-acquisition performance rather than headline deal volume. 

As a result, M&A is shifting from a transactional activity to a strategic capability. Leading organisations are responding by: 

• Hiring data center M&A talent earlier in the deal cycle 
• Aligning M&A roles more closely with operations and delivery teams 
• Giving senior leaders clearer authority over integration and value creation 

Organisations that address these talent challenges early will execute faster and with less risk as the market moves into 2026.

How Phaidon International supports data center recruitment 

As part of Phaidon International,  Selby Jennings is uniquely positioned to support data center recruitment across the entire investment, development, and operational lifecycle. This is critical in a sector where growth is inherently multi-disciplinary: M&A decisions simultaneously shape capital strategy, power & infrastructure delivery, construction execution, network connectivity, operational performance, and legal and regulatory risk. 

Each brand supports a specific part of that lifecycle: 

• Selby Jennings focuses on the investment and strategic layer, covering data center M&A talent, corporate development, strategy, and senior investment roles across private equity firms, infrastructure funds, and operating platforms. 
• LVI Associates supports the technical and delivery side of data center growth, including power and energy leadership, grid and substation expertise, design engineering, and construction management. 
• DSJ Global covers supply chain and operations roles that become critical as portfolios scale through acquisition, including procurement, vendor management, and operational planning. 
• Glocomms specialises in connectivity and network infrastructure talent, supporting interconnection strategy, network design, and operational resilience. 
• Larson Maddox supports regulatory and legal recruitment tied to M&A execution,  compliance, power and land agreements, and cross-border governance. 

Together, Phaidon International’s talent brands allow clients to hire in a way that reflects how data center platforms actually grow. Investment, delivery, and operations are tightly linked, and recruitment should be aligned the same way. 

Hiring M&A data center talent 

Selby Jennings, as part of Phaidon International, works with leading operators, investors, and developers to secure high-impact data center M&A talent. 

If M&A is part of your growth strategy for 2026, request a call back today. We will discuss your plans, assess talent gaps, and help you hire the expertise needed to execute deals and deliver long-term value.