Latest news with #dataInfrastructure
CNA
a day ago
- Business
- CNA
Unglamorous world of 'data infrastructure' driving hot tech M&A market in AI race
Weighed down by tariffs and geopolitical uncertainty, dealmaking has slowed to a crawl across most industries except one: the unglamorous world of data infrastructure. The companies that process the data used to build advanced AI models have become highly sought after targets for legacy tech companies like Meta, Salesforce, and ServiceNow in the scramble to stay competitive against the likes of OpenAI, Google and Anthropic. 'AI without data is like life without oxygen, it doesn't exist,' said Brian Marshall, global co-head of software investment banking at Citi. 'Because of that, data is having a zeitgeist moment right now driven by AI,' Marshall said. Tech deals are one of the few bright spots in an otherwise gloomy M&A market, accounting for $421 billion of the $1.67 trillion in global deals announced in the first five months of the year, or about 25 per cent of total M&A, according to preliminary data compiled for Reuters by Dealogic. That's up from about 20 per cent last year and 17 per cent in 2023, the data shows. Of the tech deals, those involving AI software makers accounted for almost three quarters of the overall value, the data shows. SPEED MATTERS Goldman Sachs Managing Director Matthew Lucas, who focuses on M&A relating to all aspects of computing, said enterprise data, as it applies to use in AI, is the 'most dynamic area in software M&A right now.' 'There's a very strong perception that speed matters a lot, getting there first matters a lot, and that tends to lend itself to doing M&A,' Lucas said. The software firms that help companies manage their data on cloud-based systems are increasingly valuable commodities as the number of such potential targets is rapidly shrinking. Enterprise data infrastructure and analytics companies like Confluent, Collibra, Sigma Computing, Matillion, Dataiku, Fivetran, Boomi, and Qlik, could become targets for legacy tech providers in the near term, investment bankers say. The companies, they say, may help businesses integrate, analyze, and store information better. Executives for Boomi, Dataiku, Fivetran, and Qlik all said they weren't surprised by the attention. "Messy, siloed data has long undermined the attempts of enterprises to deliver on the transformative potential of analytics. Now, with the urgency to deploy effective AI, fixing it isn't just essential — it's existential," Florian Douetteau, co-founder and CEO of Dataiku, said in a statement. Requests for comment from Confluent, Collibra, Sigma Computing, and Matillion weren't immediately returned. LEGACY TECH BUYS IN Several multibillion-dollar deals for data infrastructure companies have been struck or closed just in the last few weeks. Meta announced Friday a $14.8 billion deal for a 49 per cent stake in data-labeling company Scale AI. Salesforce announced plans last month to buy data integration company Informatica for $8 billion. Artificial intelligence is driving a once-in-a-generation makeover in tech that's forcing several of the largest social media platforms and software makers to buy companies that help AI-backed systems run smoothly. Worldwide, generative AI spending is expected to total $644 billion in 2025, an increase of 76.4 per cent from 2024, according to a forecast by technology data provider Gartner. In early May, IT management provider ServiceNow said it was buying data catalogue platform which will allow ServiceNow to better understand the business context behind data, executives said when it was announced. The Salesforce acquisition of Informatica, announced late last month, will allow Salesforce to better analyze and assimilate scattered data from across its internal and external systems before feeding it into its in-house AI system, Einstein AI, executives said at the time. IBM closed on its acquisition of data management provider DataStax the very next day. IBM said the deal, announced in February, will allow it to manage and process unstructured data before feeding it to its AI platform. BAD AI ADVICE Those deals highlight the strategic importance for legacy software players to own all aspects of data management, and M&A is often the fastest way to achieve it. Instead of building complex data systems from scratch, they are acquiring specialists that can help organize, clean, and connect data from across their business. Would-be targets have sometimes become the hunters as was the case when Databricks, a leader in data processing and AI that was recently valued at $62 billion, announced plans last week to buy serverless database manager Neon for $1 billion. But dealmakers warned that companies can't just buy any kind of data and throw it into an AI system and expect good results. Air Canada <> was found liable in small claims court and forced to refund airfare last year after one of its AI chatbots gave a customer bad advice. Those types of errors can happen if the wrong kind of unfiltered data is imported into an AI engine, tech dealmakers say. 'A lot of companies have a huge amount of data, but I think they're learning that you can't just funnel every piece of data you have into an AI engine with no organization, and hope that it spits out the right answer,' said Brian Mangino, partner at Latham & Watkins.
CNA
a day ago
- Business
- CNA
Analysis:Unglamorous world of 'data infrastructure' driving hot tech M&A market in AI race
Weighed down by tariffs and geopolitical uncertainty, dealmaking has slowed to a crawl across most industries except one: the unglamorous world of data infrastructure. The companies that process the data used to build advanced AI models have become highly sought after targets for legacy tech companies like Meta, Salesforce, and ServiceNow in the scramble to stay competitive against the likes of OpenAI, Google and Anthropic. 'AI without data is like life without oxygen, it doesn't exist,' said Brian Marshall, global co-head of software investment banking at Citi. 'Because of that, data is having a zeitgeist moment right now driven by AI,' Marshall said. Tech deals are one of the few bright spots in an otherwise gloomy M&A market, accounting for $421 billion of the $1.67 trillion in global deals announced in the first five months of the year, or about 25 per cent of total M&A, according to preliminary data compiled for Reuters by Dealogic. That's up from about 20 per cent last year and 17 per cent in 2023, the data shows. Of the tech deals, those involving AI software makers accounted for almost three quarters of the overall value, the data shows. SPEED MATTERS Goldman Sachs Managing Director Matthew Lucas, who focuses on M&A relating to all aspects of computing, said enterprise data, as it applies to use in AI, is the 'most dynamic area in software M&A right now.' 'There's a very strong perception that speed matters a lot, getting there first matters a lot, and that tends to lend itself to doing M&A,' Lucas said. The software firms that help companies manage their data on cloud-based systems are increasingly valuable commodities as the number of such potential targets is rapidly shrinking. Enterprise data infrastructure and analytics companies like Confluent, Collibra, Sigma Computing, Matillion, Dataiku, Fivetran, Boomi, and Qlik, could become targets for legacy tech providers in the near term, investment bankers say. The companies, they say, may help businesses integrate, analyze, and store information better. Executives for Boomi, Dataiku, Fivetran, and Qlik all said they weren't surprised by the attention. "Messy, siloed data has long undermined the attempts of enterprises to deliver on the transformative potential of analytics. Now, with the urgency to deploy effective AI, fixing it isn't just essential — it's existential," Florian Douetteau, co-founder and CEO of Dataiku, said in a statement. Requests for comment from Confluent, Collibra, Sigma Computing, and Matillion weren't immediately returned. LEGACY TECH BUYS IN Several multibillion-dollar deals for data infrastructure companies have been struck or closed just in the last few weeks. Meta announced Friday a $14.8 billion deal for a 49 per cent stake in data-labeling company Scale AI. Salesforce announced plans last month to buy data integration company Informatica for $8 billion. Artificial intelligence is driving a once-in-a-generation makeover in tech that's forcing several of the largest social media platforms and software makers to buy companies that help AI-backed systems run smoothly. Worldwide, generative AI spending is expected to total $644 billion in 2025, an increase of 76.4 per cent from 2024, according to a forecast by technology data provider Gartner. In early May, IT management provider ServiceNow said it was buying data catalogue platform which will allow ServiceNow to better understand the business context behind data, executives said when it was announced. The Salesforce acquisition of Informatica, announced late last month, will allow Salesforce to better analyze and assimilate scattered data from across its internal and external systems before feeding it into its in-house AI system, Einstein AI, executives said at the time. IBM closed on its acquisition of data management provider DataStax the very next day. IBM said the deal, announced in February, will allow it to manage and process unstructured data before feeding it to its AI platform. BAD AI ADVICE Those deals highlight the strategic importance for legacy software players to own all aspects of data management, and M&A is often the fastest way to achieve it. Instead of building complex data systems from scratch, they are acquiring specialists that can help organize, clean, and connect data from across their business. Would-be targets have sometimes become the hunters as was the case when Databricks, a leader in data processing and AI that was recently valued at $62 billion, announced plans last week to buy serverless database manager Neon for $1 billion. But dealmakers warned that companies can't just buy any kind of data and throw it into an AI system and expect good results. Air Canada <> was found liable in small claims court and forced to refund airfare last year after one of its AI chatbots gave a customer bad advice. Those types of errors can happen if the wrong kind of unfiltered data is imported into an AI engine, tech dealmakers say. 'A lot of companies have a huge amount of data, but I think they're learning that you can't just funnel every piece of data you have into an AI engine with no organization, and hope that it spits out the right answer,' said Brian Mangino, partner at Latham & Watkins.
The Independent
04-06-2025
- Business
- The Independent
Alberta: the emerging powerhouse for global data infrastructure
Invest Alberta is a Business Reporter client In the rapidly evolving digital economy, the demand for robust, scalable and sustainable data infrastructure is intensifying. As organisations worldwide seek optimal locations for data centre expansion, Alberta, Canada is emerging as a compelling choice, offering a unique blend of energy resources, technological innovation and strategic investment opportunities. Energy abundance meets sustainability Alberta's energy landscape is undergoing a significant transformation. Historically known for its oil and gas production, the province is now a leader in Canada's renewable energy growth. With substantial investments in wind, solar and bioenergy, Alberta is setting a precedent for integrating traditional and renewable energy sources. This energy diversification is particularly advantageous for data centre development, which requires consistent and sustainable power. The province's deregulated electricity market allows for flexible power purchase agreements, enabling data centre operators to secure cost-effective energy solutions across a selection of green and traditional energy choices. Alberta's commitment to fostering a conducive environment for data infrastructure is evident through significant investments and partnerships. Notably, eStruxture Data Centers is constructing a 90-megawatt facility in Rocky View County, Alberta's largest data centre to date. This $750 million investment signals the sector's confidence in Alberta's potential as a data hub. Similarly, Amazon Web Services (AWS) announced a $4.3 billion investment to establish a cloud computing hub in Calgary, further solidifying the province's position in the global data infrastructure landscape. More energy, more land, less cost Alberta's vast land availability, with access to industrial-zoned parcels and existing utility infrastructure, allows for rapid deployment and long-term scalability. Unlike more congested data centre markets facing land shortages and permitting bottlenecks, Alberta's municipalities and regional development authorities work in close collaboration with industry to expedite development. Alberta offers numerous high-potential zones throughout the province, with proximity to major transportation networks, clean energy sources and a skilled labour force ready to support construction and operations. Cold weather, historically seen as a challenge in other industries, becomes a strategic asset in Alberta. The province's naturally cool climate offers substantial cost savings for data centre operators by reducing the energy required for cooling servers – one of the most significant operational expenses for data facilities. Innovation ecosystem and talent pool Alberta boasts a thriving innovation ecosystem. The province is home to numerous leading research institutions and a growing tech sector, fostering advancements in artificial intelligence, machine learning and cyber-security. Companies such as Fortinet are expanding their presence in Alberta, establishing facilities that contribute to and benefit from both technological innovation and workforce development. Alberta has one of the highest proportions of workers under the age of 45. The combined share of workers with a post-secondary certificate and university degree rose to 73.8 per cent in 2024. The 26 post-secondary institutions in the province support the development of a young, highly educated workforce. This is a major draw for the tech talent that will drive the developments of the future. This robust ecosystem ensures that data centres in Alberta are not just operational facilities but integral components of a dynamic and forward-thinking technological community. Low barrier to entry Alberta's regulatory environment is built for business. The province offers a predictable permitting process, low corporate tax rates, and no provincial sales tax – factors that directly reduce operational risk and improve project economics. What's more, Invest Alberta, the province's economic development agency and its partners provide bespoke support to incoming data centre investors – connecting and working with local utilities, permitting authorities and regional communities to ensure projects are both efficient and inclusive. For investors and operators seeking to build the next generation of digital infrastructure, Alberta offers what few places can: affordable and reliable power, sustainable cooling, ample space, an educated workforce and a government that understands the speed of business.
National Post
19-05-2025
- Business
- National Post
NetApp Builds AI Infrastructure on NVIDIA AI Data Platform
Article content SAN JOSE, Calif. — NetApp ® (NASDAQ: NTAP), the intelligent data infrastructure company, today announced that it is working with NVIDIA to support the NVIDIA AI Data Platform reference design in the NetApp AIPod solution to accelerate enterprise adoption of agentic AI. Powered by the robust and mature data management capabilities of NetApp ONTAP ®, NetApp AIPod deployments built on the NVIDIA AI Data Platform will help businesses build secure, governed, and scalable AI data pipelines for retrieval-augmented generation (RAG) and inferencing, enabling organizations to harness the full potential of AI innovation. Article content As businesses invest in AI to solve complex business challenges, they need intelligent data infrastructure that can remove the data silos that slow technical innovation. The most recent NetApp Data Complexity report found that 79 percent of tech and business leaders agree that unifying their data estates is critical for achieving top AI outcomes in 2025. Article content As a NVIDIA-Certified Storage partner leveraging the NVIDIA AI Data Platform, NetApp gives NetApp AIPod users data infrastructure with built-in intelligence. NetApp gives customers confidence that they have the enterprise data management capabilities and scalable multi-tenancy needed to eliminate data siloes so that they can develop and operate high-performance AI factories and deploy agentic AI to solve real-world business problems. Article content 'A unified and comprehensive understanding of business data is the vehicle that will help companies drive competitive advantage in the era of intelligence, and AI inferencing is the key,' said Sandeep Singh, Senior Vice President and General Manager of Enterprise Storage at NetApp. 'We have always believed that a unified approach to data storage is essential for businesses to get the most out of their data. The rise of agentic AI has only reinforced that truly unified data storage goes beyond just multi-protocol storage. Businesses need to eliminate silos throughout their entire IT environment, whether on-premises and in the cloud, and across every business function, and we are working with NVIDIA to deliver connected storage for the unique demands of AI.' Article content The NetApp AIPod solution built on the NVIDIA AI Data Platform incorporates NVIDIA accelerated computing to run NVIDIA NeMo Retriever microservices and connects these nodes to scalable storage. Using this reference design in the NetApp AIPod solution brings intelligence to enterprise data so enterprises can scan, index, classify and retrieve large stores of private and public documents in real time. This augments AI agents as they reason and plan to solve complex, multistep problems, helping enterprises turn data into knowledge and boost agentic AI accuracy across many use cases. Article content 'Agentic AI enables businesses to solve complex problems with superhuman efficiency and accuracy, but only as long as agents and reasoning models have fast access to high-quality data,' said Rob Davis, Vice President of Storage Technology at NVIDIA. 'The NVIDIA AI Data Platform reference design and NetApp's high-powered storage and mature data management capabilities bring AI directly to business data and drive unprecedented productivity.' Article content The NVIDIA AI Data Platform aligns with NetApp's vision for advanced data management capabilities to accelerate AI pipelines by leveraging continuously updated metadata and vectorization to enable queries to produce more timely, relevant and accurate results. Article content Additional Resources Article content About NetApp NetApp is the intelligent data infrastructure company, combining unified data storage, integrated data, operational and workload services to turn a world of disruption into opportunity for every customer. NetApp creates silo-free infrastructure, harnessing observability and AI to enable the industry's best data management. As the only enterprise-grade storage service natively embedded in the world's biggest clouds, our data storage delivers seamless flexibility. In addition, our data services create a data advantage through superior cyber resilience, governance, and application agility. Our operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. No matter the data type, workload, or environment, with NetApp you can transform your data infrastructure to realize your business possibilities. Learn more at or follow us on X, LinkedIn, Facebook, and Instagram. Article content Article content Article content Article content Article content Contacts Article content Media Contact: Kenya Hayes NetApp Article content Article content
