The infra/STRUCTURE Summit 2024 in Las Vegas brought together industry leaders to discuss the latest mergers and acquisitions (M&A) trends within the data center engineering and project services. The panel featuring Steve Lee, Founder of Layer Seven Capital, Peter Skae, Managing Director of JLL, and Sean Farney, Vice President-Data Center Strategy of JLL, explored how companies are scaling services to meet the increasing demands of the digital infrastructure landscape, especially in relation to AI, sustainability, and power solutions.
The Growing Importance of Specialized Expertise
Skae emphasized the increasing value of specialized knowledge in the data center space,
“The closer you get to the computer, people value your services.” This expertise has become increasingly crucial as data centers evolve to meet new challenges. Skae also added, “”If you don’t have those subject matter experts on your team to be able to adapt to that change that could set you back 18 months.”
Driving Forces Behind Strategic Acquisitions
Farney outlined several factors contributing to the current M&A trend:
- Obsolescence: Aging data center infrastructure requires upgrades and retrofits.
- Digital Infrastructure Scarcity: Limited availability of data center space and power is driving demand for optimization.
- AI and High-Density Computing: New technologies require specialized cooling and power solutions.
- Sustainability Reporting: Increasing focus on environmental impact and efficiency.
The Changing Landscape of Data Center Services
The panel highlighted how companies like JLL are expanding their service offerings. Farney explained, “We want to help you do everything from finance, buy, find the land for, manage, construction, process, operate, design, engineering, dispose of the asset, and in very recent developments on sustainability reporting, assessment services.”
Rapid Technological Advancements
Skae highlighted the unprecedented pace of change in the industry, “The rate of change that we’re seeing happen is unbelievable. I mean, I was recently on the phone with someone from Open AI who said they’re using 240 kW per cabinet.” This rapid evolution necessitates constant adaptation and specialized knowledge.
The discussion emphasized the critical importance of power in data center development. Farney quoted a colleague, “We don’t chase land anymore. We chase power…Nothing else matters”. This shift is driving interest in alternative energy sources, including the potential revival of nuclear power for data centers.
Looking Ahead
As the data center industry continues to evolve, the integration of specialized expertise with broader real estate and facility management capabilities is likely to drive consolidation and strategic acquisitions. The ability to provide comprehensive, expert services will be a key differentiator in this rapidly changing market.
The panel’s insights underscore the complex challenges facing the data center industry and the strategic moves being made to address them. As technology advances and demand grows, companies that can adapt quickly and offer specialized solutions will be well-positioned for success.
Attendees of the annual infra/STRUCTURE summit receive a copy of the presentation materials.
Not sure if the event is right for you? Learn more about the different attendees here. To be sure you don’t miss out you can SAVE THE DATE for 2025! The infra/STRUCTURE Summit will return to the Wynn in Las Vegas October 15-16, 2025. We hope to see you there!
