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Channel Post MEA
17-02-2025
- Business
- Channel Post MEA
Datacenter M&A Deals Break Records In 2024
Data from Synergy Research Group shows that after a relative lull in 2023, the value of data center-oriented M&A deals that closed in 2024 blew past the $70 billion milestone and finally reached $73 billion. 2024 was already in record-breaking territory, before a Blackstone-led acquisition of AirTrunk closed at the end of December. At almost $16 billion, that acquisition set a new benchmark for the biggest deal ever closed. Previously, 2022 had been the peak in terms of the aggregate value of all deals formally closed, at $52 billion. In 2023 there was a drop off with total value falling by 50% to $26 billion. However, 2022 numbers were boosted by the two biggest deals that had ever been seen in the industry, each valued at $11 billion or more. If mega-deals of $2 billion or more are separated out, then the trend in the flow of what might be termed 'regular deals' shows a different pattern. 2021 was the peak, 2022 dropped off by 32%, 2023 dropped again but only by 7%, and 2024 jumped by 133%. Looking to 2025, over $7 billion in deals have already closed and there is another $15 billion agreed but not yet formally closed. Synergy is also aware of some $20 billion in possible future deals, where companies are seeking new sources of funding or considering strategic options. Since 2015 Synergy has logged a total of 1,514 data center-oriented M&A deals, with an aggregate value of $324 billion. Most of this comes from company acquisitions, but the numbers also include minority equity investments, investments in joint ventures, acquisitions of individual data centers, share sales and acquisition of land for data center development. Prior to late 2024, the four largest deals ever were each valued at $10 billion or more and closed in 2021 and 2022. These were the acquisitions of CyrusOne, Switch, CoreSite and QTS, who all feature in the worldwide top 15 ranking of colocation operators. Apart from the Blackstone acquisition or AirTrunk, the biggest deals closed in 2024 were two separate equity investments in Vantage Data Centers, which combined were valued at $9.2 billion. In two separate deals, Vantage also received $3.1 billion equity investment in its EMEA operations. Other large 2024 deals were equity investments in EdgeConneX and DataBank. Apart from the rapid rise in overall data center M&A activity over the ten-year period, the most notable feature has been the extent to which private equity has flooded into the market. In 2020 private equity accounted for 54% of the value of closed deals, rising to 65% in 2021, and since then it has remained in the 80-90% range. 'There has been a tremendous increase in the demand for data center capacity, driven by cloud services, social networking and a range of both consumer and enterprise digital services. There is no end in sight to this trend, with generative AI technology and services adding a further boost to already strong demand,' said John Dinsdale, a Chief Analyst at Synergy Research Group. 'Specialist data center operators have either not been able or were not prepared to fund those investments themselves, while private equity investors have been more than willing to step in and fund growth initiatives. Looking at pending deals and the future pipeline, there is plenty of evidence to suggest that 2025 will be another boom year for data center M&A.' 0 0
Channel Post MEA
11-02-2025
- Business
- Channel Post MEA
GenAI is Now Driving Half Of The Growth In Cloud Market
Q4 enterprise spending on cloud infrastructure services was $91 billion worldwide, up $17 billion or 22% from the fourth quarter of 2023, according to new data from Synergy Research Group. The full-year 2024 market reach $330 billion, up $60 billion from 2023 and an increase of $102 billion from 2022. It is notable that ChatGPT was launched at the end of 2022, and generative AI services and technology have helped to propel the market since then. Synergy data and analysis shows that generative AI has driven half of the market growth over the last two years, through a combination of new GenAI platform services, GPU as a service, and enhancements to a wide range of other cloud services. In terms of competitive positioning, Amazon maintains a strong lead in the market though Microsoft and Google once again had a higher percentage of growth. Their Q4 worldwide market shares were 30%, 21% and 12% respectively. Among the tier two cloud providers, those with the highest year-on-year growth rates include CoreWeave, Oracle, Snowflake, Cloudflare and Databricks. Notably, CoreWeave has now broken into the top twenty ranking of cloud providers thanks to its AI and GPU services. With most of the major cloud providers having now released their earnings data for Q4, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $90.6 billion, with full-year 2024 revenues reaching $330.4 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 24% in Q4. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three account for 68% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world. When measured in local currencies the major countries with the strongest growth included Brazil, Spain, Italy, India and Japan, all growing at rates above the worldwide average. The US remains by far the largest cloud market, with its scale far surpassing the whole APAC region. The US market grew by 23% in Q4. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates were Ireland, Spain and Italy. 'Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023. For such a big market that is an impressive acceleration of growth,' said John Dinsdale, a Chief Analyst at Synergy Research Group. 'How much of that was down to AI? ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024. Our assessment is that since ChatGPT was launched, GenAI has been responsible for at least half of the increase in cloud service revenues. That has come from either newly launched GenAI/GPU services or from AI-driven improvements to existing cloud services.' 0 0
Yahoo
07-02-2025
- Business
- Yahoo
Cloud Market Jumped to $330 billion in 2024 - GenAI is Now Driving Half of the Growth
RENO, Nev., Feb. 7, 2025 /PRNewswire/ -- New data from Synergy Research Group shows that Q4 enterprise spending on cloud infrastructure services was $91 billion worldwide, up $17 billion or 22% from the fourth quarter of 2023. The full-year 2024 market reach $330 billion, up $60 billion from 2023 and an increase of $102 billion from 2022. It is notable that ChatGPT was launched at the end of 2022, and generative AI services and technology have helped to propel the market since then. Synergy data and analysis shows that generative AI has driven half of the market growth over the last two years, through a combination of new GenAI platform services, GPU as a service, and enhancements to a wide range of other cloud services. In terms of competitive positioning, Amazon maintains a strong lead in the market though Microsoft and Google once again had a higher percentage of growth. Their Q4 worldwide market shares were 30%, 21% and 12% respectively. Among the tier two cloud providers, those with the highest year-on-year growth rates include CoreWeave, Oracle, Snowflake, Cloudflare and Databricks. Notably, CoreWeave has now broken into the top twenty ranking of cloud providers thanks to its AI and GPU services. With most of the major cloud providers having now released their earnings data for Q4, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $90.6 billion, with full-year 2024 revenues reaching $330.4 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 24% in Q4. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three account for 68% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world. When measured in local currencies the major countries with the strongest growth included Brazil, Spain, Italy, India and Japan, all growing at rates above the worldwide average. The US remains by far the largest cloud market, with its scale far surpassing the whole APAC region. The US market grew by 23% in Q4. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates were Ireland, Spain and Italy. "Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023. For such a big market that is an impressive acceleration of growth," said John Dinsdale, a Chief Analyst at Synergy Research Group. "How much of that was down to AI? ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024. Our assessment is that since ChatGPT was launched, GenAI has been responsible for at least half of the increase in cloud service revenues. That has come from either newly launched GenAI/GPU services or from AI-driven improvements to existing cloud services." About Synergy Research Group Synergy Research Group provides quarterly market share analysis and forecasts for Communications and Cloud related industries. Our data and analysis is provided to clients through Synergy's unique research SaaS platform, SIA™, which enables intuitive access to complex and fast-moving data sets. Synergy's data analytics and analysis have been widely recognized worldwide for over 25 years and are frequently used by global industry leaders, governments, and financial institutions. To speak to an analyst or to find out more about how to access Synergy's in-depth market data, please contact Heather Gallo @ hgallo@ or at 775-785-3113. SOURCE Synergy Research Group
Yahoo
07-02-2025
- Business
- Yahoo
Cloud Market Jumped to $330 billion in 2024 - GenAI is Now Driving Half of the Growth
RENO, Nev., Feb. 6, 2025 /CNW/ -- New data from Synergy Research Group shows that Q4 enterprise spending on cloud infrastructure services was $91 billion worldwide, up $17 billion or 22% from the fourth quarter of 2023. The full-year 2024 market reach $330 billion, up $60 billion from 2023 and an increase of $102 billion from 2022. It is notable that ChatGPT was launched at the end of 2022, and generative AI services and technology have helped to propel the market since then. Synergy data and analysis shows that generative AI has driven half of the market growth over the last two years, through a combination of new GenAI platform services, GPU as a service, and enhancements to a wide range of other cloud services. In terms of competitive positioning, Amazon maintains a strong lead in the market though Microsoft and Google once again had a higher percentage of growth. Their Q4 worldwide market shares were 30%, 21% and 12% respectively. Among the tier two cloud providers, those with the highest year-on-year growth rates include CoreWeave, Oracle, Snowflake, Cloudflare and Databricks. Notably, CoreWeave has now broken into the top twenty ranking of cloud providers thanks to its AI and GPU services. With most of the major cloud providers having now released their earnings data for Q4, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $90.6 billion, with full-year 2024 revenues reaching $330.4 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 24% in Q4. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three account for 68% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world. When measured in local currencies the major countries with the strongest growth included Brazil, Spain, Italy, India and Japan, all growing at rates above the worldwide average. The US remains by far the largest cloud market, with its scale far surpassing the whole APAC region. The US market grew by 23% in Q4. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates were Ireland, Spain and Italy. "Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023. For such a big market that is an impressive acceleration of growth," said John Dinsdale, a Chief Analyst at Synergy Research Group. "How much of that was down to AI? ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024. Our assessment is that since ChatGPT was launched, GenAI has been responsible for at least half of the increase in cloud service revenues. That has come from either newly launched GenAI/GPU services or from AI-driven improvements to existing cloud services." About Synergy Research Group Synergy Research Group provides quarterly market share analysis and forecasts for Communications and Cloud related industries. Our data and analysis is provided to clients through Synergy's unique research SaaS platform, SIA™, which enables intuitive access to complex and fast-moving data sets. Synergy's data analytics and analysis have been widely recognized worldwide for over 25 years and are frequently used by global industry leaders, governments, and financial institutions. To speak to an analyst or to find out more about how to access Synergy's in-depth market data, please contact Heather Gallo @ hgallo@ or at 775-785-3113. View original content to download multimedia: SOURCE Synergy Research Group View original content to download multimedia: Sign in to access your portfolio
