Dealmakers in Europe, Middle East and Africa (EMEA) are cautiously optimistic about M&A pipelines in 2025, with energy providers for data centres likely to be a significant source of activity.

The rise in artificial intelligence (AI) is driving strong demand for data centres. Behind the scenes, data centre owners are cutting deals with utilities to supply renewable energy – and these energy providers in turn need to seek significant amounts of private capital to help fund the investments.

Spain’s Iberdrola is likely to be a major player in this trend. Its new data centres business already has a valuation above EUR 2bn and it is seeking investment of up to EUR 10bn in the area.

Rupert Cocke, Mergermarket’s senior features editor for EMEA, joins Dealcast host Julie-Anna Needham to discuss this trend, along with the ongoing consolidation of the European asset management space and other market developments.

• Adnoc’s ongoing takeover of Covestro was the largest deal of last year. Will Covestro still be a source of activity after the deal closes in 2H25?
• Interest rates are expected to fall this year. What does that mean for private equity dealmaking?
• Europe accounted for more than 90% of EMEA deal value in 2024. How can dealmakers drive more pan-EMEA M&A by putting sovereign capital from the Middle East to work?