2027 Data Center Market Outlook

The data centre industry is heading into 2027 facing mounting technology disruption, financial distress and a wave of deal activity. This report by AlixPartners surveys the views of more than 480 senior executives, investors and lenders, capturing their perspectives on pricing, capital, technology and M&A.

Key takeaways include:

• 62 percent believe data centre M&A is already attractive or soon to be attractive, with telco carve-outs and sale-leasebacks emerging as the defining deal type
• 60 percent see a major disruption as likely within 24 months, and most operators can't see demand certainty beyond the next 12 months. 
• 64 percent expect distressed situations to increase over the next 18 months, driven by a cash flow squeeze between rising CapEx and thin demand visibility