European multi-tenant datacenter (MTDC) market is undergoing a complete transformation as the new regulation is in place. And what is going to transform this market in Europe are things like data regulation requirements, increasing demand for high-quality datacenter space, latency concerns, and a need to differentiate – with footprint, connectivity or services. All of this will drive acquisition activity in this space in the near future.
According to 451 Research, this activity is likely to create new divisions between regional, international and pan-European wholesale and colocation providers, leading smaller players to focus more on services and areas of core competency to compete.
Consolidation is not restricted to MTDC operators. 451 Research expects M&A activity to also focus on service portfolios, skill sets, and network and cloud infrastructure as companies move into new countries and offer higher-value services.
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