Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.
Among the attractions for private equity in Europe right now is the continent’s under-digitalization compared with the US, several sources have told PE Hub.
This morning, we take a deep dive into a vital hub for Europe’s catchup and one that private equity has been backing heavily: data centers. We get the views of EQT’s Carl Sjölund, Bain Capital’s Rafael Coste Campos and Michael Huber, and Stefan Rieger of Latham & Watkins on how private equity is playing this megatrend.
Deals-wise, we’ve got an announcement in the digital field this morning, as Keensight-backed B2B cloud and connectivity services provider Inherent Group makes an add-on.
Sovereignty
As Europe pushes ahead with digital transformation, data centers have become the vital backbone powering everything from cloud computing to AI models. Yet there is much more than just technological advancements driving this rapid expansion. Geopolitics, regulations and a rising focus on data and digital sovereignty are playing equally important roles, industry experts told PE Hub’s Irien Joseph.
Check out the premium version of the Wire to learn how data sovereignty is playing into GPs' thinking and the impact of regulations like GDPR.
Read the full feature for how the EU’s AI strategy is impacting data center investing and which cities and countries private equity is betting on as the next big data center hosts.
End-to-end
Keensight Capital-backed Inherent Group has acquired Systonic, its fourth add-on since the turn of the year.
Details including Inherent's 2024 revenue and 2027 revenue goal are in the premium version of the Wire.
That’s all from me today. Obey Martin Manayiti is on US Wire later today and I’ll write to you again from Europe tomorrow.
Cheers,
Craig
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