2025年第一季度全球数字化基础设施行业更新报告 Digital Infrastructure Industry Update

Q12025

DigitalInfrastructure

IndustryUpdate

TableofContents

01

HoulihanLokeyOverview

04

FeaturedQ12025Transactions

02

KeyIndustryTrendsbySector

05

PublicMarketsOverview

03

KeyNewsStories

06

Appendix

Houlihan

LokeyOverview

DigitalInfrastructure

IndustryUpdateQ12025

DearClientsandFriends,

HoulihanLokeyispleasedtopresentitsDigital

InfrastructureIndustryUpdateforQ12025.Wehave

includedtopicalnewsstories,transactionannouncements,publicmarketsvaluationdata,andindustryinsightstohelpkeepyouabreastofthisdynamicandconstantlyevolvingindustry.

HoulihanLokeynowhas~40financialprofessionals

betweentheU.S.andEuropecoveringthedigital

infrastructuresector.WearealsopleasedtowelcomeBillyGoldsteinasaManagingDirector,bringingdeepindustryexpertiseandfurtherstrengtheningourglobalcapabilities.

ThisupdatealsoincludesthelatestfromHoulihanLokey’sCapitalSolutionsteam,oneofthelargestandmostactivenon-balance-sheetplacementagentsonWallStreet.The

CapitalSolutionsGroupbringsreal-timeknowledgeofandinsightintowhatisachievableintoday’svolatilemarkets

OurServiceOfferings

MergersandAcquisitions

CorporateValuationAdvisoryServices

CapitalSolutions

Transaction

AdvisoryServices

l

BoardAdvisoryServices

DisputeResolutionServices

$

basedonrecentandin-processfinancingtransactions.

Wehopeyoufindthisquarterlyupdatetobeinformative

andthatitservesasavaluableresourcetoyou.Ifthereis

Financial

Restructuring

$

TransactionOpinions

additionalcontentyouwouldfindusefulforfutureupdates,

pleasedonothesitatetocalloremailuswithyour

suggestions.

Regards,

PortfolioValuationandFundOpinions

HoulihanLokey’sDigitalInfrastructureTeam

4

JasonHill

Co-HeadofU.S.Tech,GlobalHeadofDigitalInfrastructure

JDHill@HL.com

+1617.947.7295

MaxGilbert

ManagingDirector

Max.Gilbert@HL.com

+447824997547

ChristianMaher

ManagingDirector

Christian.Maher@HL.com

+447900243308

GregWidroe

ManagingDirector

GWidroe@HL.com

+1916.425.9659

SeanFitzgerald

ManagingDirectorCapitalSolutions

SFitzgerald@HL.com

+1917.837.0069

BillFanning

ManagingDirector

BFanning@HL.com

+1415.205.7242

ChrisGodsmark

ManagingDirector

Chris.Godsmark@HL.com

+447970406784

JesseNichols

ManagingDirector

Jesse.Nichols@HL.com

+1720.202.1481

SeanHew

Director

SHew@HL.com

+1305.877.8807

MarioManna

ManagingDirectorCapitalSolutions

Mario.Manna@HL.com

+1203.253.5685

ClaytonFunk

ManagingDirector

CFunk@HL.com

+1816.820.0169

BillyGoldstein

ManagingDirector

Billy.Goldstein@HL.com

+1212.497.4280

BrianPryor

ManagingDirector

BPryor@HL.com

+1650.996.7295

CharlieHartwick

SeniorVicePresidentFinancialSponsors

CHartwick@HL.com

+1310.788.5394

GreggNewman

ManagingDirectorCapitalSolutions

GNewman@HL.com

+1646.221.8141

WelcomingBillyGoldsteintotheDigitalInfrastructureTeam

BillyGoldstein

ManagingDirector

NEWYORK

QUALIFICATIONSMr.GoldsteinjoinsHoulihanLokeyfollowingnearlyfiveyearsasaPartnerandManagingDirector

atCDXAdvisors,atechnology-enhancedinvestmentbankfocusedonTMTandmiddle-market

growthcompanies.AtCDX,hefocusedprimarilyonthedigitalinfrastructurespace,originatingandadvisingclientsinmorethan$22.6billionofclosedM&A(buysideandsellsideM&A)involving

privateandpublictargets.Mr.Goldsteinalsostructuredjointventuresandraised$4.8billioninprivateequityforthefirm’sdigitalinfrastructureclients.PriortohistimeatCDX,hehadbeenaManagingDirectorintheTMTgroupatGoldmanSachsand,subsequently,HeadofNorth

AmericanTelecomMerchantandInvestmentBankingforMacquarieCapital.Throughouthiscareer,Mr.Goldsteinhasexecutedmorethan$130billionofclosedM&Aandraisedover$37billionofdebtandequityforclients.

Click

here

toviewthefullpressrelease.

5

6

Accomplishments

TheDigitalInfrastructureteamispartofHoulihanLokey’sglobalTechnologyGroup,withmore

than140financeprofessionalsdedicatedtodeliveringsuperiorresultsandoutstandingserviceinthetechnologysector.

HoulihanLokeycontinueditspositionasaleadinginvestmentbankingadvisortodigitalinfrastructureandconnectivity

companies,havingrecentlyadvisedArchtopFiberonitscapitalraisefromMonroeCapital;LogixFiberNetworksonits

recapitalizationbyO’ConnorCapitalSolutions;SurfInternetonitsequityinvestmentfromMacquarieanddebtraisefrom

DigitalBridge,CDPQ,CPPIB,BoundaryStreet,andLibertyMutual;FullFibreonitsmergerwithZzoomm;Kajeetonitsgrowth

capitalraisefromMWP;BandwidthLogiconitsjointventurewithastrategicinvestor;ConnectDeMoinesonitssaletoCologix;GlassRoutesonitsgrowthfinancingfromPostRoadGroup;FocusGrouponitssaletoHg;Colohouseonitsacquisitionof

Hivelocity;andLitFibreonitspendingsaletoCityFibre.

TheDigitalInfrastructureteamhasearnedareputationforprovidingsuperiorserviceandachievingoutstandingresultsinM&Aadvisory,capitalraising,restructuring,andfinancialandvaluationadvisory.Atrustedadvisor,thegroupcombinesextensive

FinancialAdvisor

hasbeenfullyrecapitalizedby

AD

UP

aportfoliocompanyof

hasreceivedaSeniorSecuredCreditFacilityfrom

?OSTPG

GrowthFinancing

ExclusiveAdvisorPlacementAgent

FinancialAdvisor

hasenteredintoajointventurewith

AStrategicInvestor

SURFInternet

aportfoliocompanyof

hasreceivedapreferredequityinvestmentfrom

。MACQUARIE

ExclusivePlacementAgent

SURFInternet

aportfoliocompanyof

UpsizedSeniorSecuredCreditFacility

GrowthFinancing$300,000,000

ExclusivePlacementAgent

FullFibre.

aportfoliocompanyof

hasmergedwith

aportfoliocompanyof

OAKTREE

FinancialAdvisor

SellsideAdvisor

⃞?connectcsm

hasbeenacquiredby

colog

aportfoliocompanyof

hasreceivedanewinvestmentfrom

XHg

SellsideAdvisor

charter

COMMUNICATIONS

hassoldaportfolioofwirelesstowersto

Towerco

ExclusiveFinancialAdvisor

aportfoliocompanyof

Newlight"

hasbeenacquiredby

●c·tyF·bre

SellsideAdvisor

SellsideAdvisor

dligital

hasbeenacquiredby

NOVACAP

aportfoliocompanyof

hasacquired

HIVELOCITY

BuysideAdvisor

NETWR

SellsideAdvisor

APGEE

hasbeenacquiredby

d'yn

含JRFInternet

aportfoliocompanyof

UpsizedSeniorSecuredCreditFacility

GrowthFinancing$200,000,000

ExclusivePlacementAgent

SellsideAdvisor

UK

aportfoliocompanyof

hasbeenacquiredby

aportfoliocompanyof

marketcapabilitieswithin-depthindustryknowledgetohelpclientsmaximizeshareholdervalue.

FeaturedRecentTransactions

archt。pf·ber

aportfoliocompanyof

SeniorSecuredCreditFacilityGrowthFinancing

$190,000,000

ExclusivePlacementAgent

\wavenet

aportfoliocompanyof

MACQUARIE

MacquariecapitalprincipalFinance

hascombinedwith

BuysideAdvisor

HoulihanLokeyCapitalSolutions

HoulihanLokey’sCapitalSolutionsGroupisthelargestofitskindonWallStreet,withmorethan165professionals

raisingandadvisingon$23billionincapitalacross~115transactionsinthepast12months.Adedicatedgroupofindividualswithintheteamareexperiencedinfinancingallaspectsofthedigitalinfrastructuresector.(1)

PleasecontactGreggNewmanat

GNewman@HL.com

orMarioMannaat

Mario.Manna@HL.com

todiscussthisinmoredetail.

RecentHoulihanLokeyDigitalInfrastructure

CapitalSolutionsTransactions

archt。pf·ber

aportfoliocompanyof

SeniorSecuredCreditFacilityGrowthFinancing

$190,000,000

ExclusivePlacementAgent

FBEFRNETWORKS

aportfoliocompanyof

Astra

CAPITALMANAGEMENT

2ndLienTermLoanRefinancing

ExclusivePlacementAgent

ExclusiveFinancialAdvisor

hasreceivedanequityinvestmentfrom

AD

UP

aportfoliocompanyof

hasreceivedaSeniorSecuredCreditFacilityfrom

OSTPG

GrowthFinancing

ExclusiveAdvisor&PlacementAgent

aportfoliocompanyof

hasacquired

HIVELOCITY

CreditFacility&EquityFinancing

AcquisitionFinancing

BuysideAdvisor&ExclusivePlacementAgent

食JRFInterney

aportfoliocompanyof

盈Baincapital

UpsizedSeniorSecuredCreditFacility

GrowthFinancing$200,000,000

ExclusivePlacementAgent

LeadFinancialAdvisorandPlacementAgent

Qscale

hasreceivedagrowthequityinvestmentfrom

Pleaseletusknowifyou’dliketospeakwithourCapitalSolutionsteamaboutthecurrentfinancingenvironmentandopportunitiesinthismarket.

DataasofMarch31/2025.

(1)

7

Investment-GradeCapital

Forissuerswithsufficientcashflowstabilityorcontractedrevenue,HoulihanLokeystructurestransactionstoachieveinvestment-gradecreditratings.Weaccomplishthisusingproject

financeorasset-backedsecurities(ABS)techniquestoisolatecashflowsinanonrecourse

specialpurposevehicle(SPV).Doingsoenablesustoprivatelyplacethetransactionwith

insurancecompaniesatasignificantlylowercapitalcostthanothersources.Investment-

gradesolutionstypicallyprovidelonger-datedliabilitiesandlowerprincipalamortization

requirementsthantermloans.Similartotermloans,securitizationscanbedividedintoseniorandjuniortranchestooptimizethecapitalstructure.

UnratedorBelow-Investment-GradeCapital

Forissuerswithgrowthstoriesorhighercashflowvolatility,HoulihanLokeygenerallyfocusesonprivatecreditinvestors.Termloansarethemostcommonexecutionformatforthisgroup.Privatecreditinvestorsofferquickerexecutionandmoreflexibilitythansyndicatedleveragedfinancemarkets.Termloanscanbetranchedintodifferentclassesofseniority:first-

out/second-outandOpCo/HoldCostructures.Asleverageandriskincrease,payment-in-kindfeaturesandequityupside(includingwarrantsandconversionoptions)canbeaddedtothestructure.Privatecapitalsolutionscanalsoincludestructuredequityintheformof

convertibleorredeemablesecuritiesorcommonequity.Inthecurrentvolatilemarket,privatecapitalsourcesareconsistentlyopenattimeswhentheHighYieldandBSLmarketsare

temporarilyclosedorilliquid.

CapitalSolutionsHighlightsQ12025

Commentary

•InearlyQ1,theFederalReserveseemedtohaveengineeredasoftlandingfor

theU.S.economy.TheS&P500hitan

all-timehighinmid-February.However,inearlyApril,tariffannouncementsandrecessionfearssparkedasharpsell-offacrossassetclasses.Subsequenttradepolicyheadlineshavepermittedasharprecovery.

•Five-yearand10-yearU.S.treasuriesfell30bpsto40bpsduringthequarterbutsubsequentlyretracednearlythewholemoveandstandat4.17%and4.5%,

respectively,asofMay15.SOFRremainsat4.3%.

•Publicnewissuemarketshadastrong

starttothequarter,butgroundtoahaltbylateMarch.Abacklogofhigh-yield

andABSissuersspentthefirsthalfofAprilonthesidelines,butconditionshavesinceimproved.

•Fundswithmark-to-marketaccountingshowedpaperlossesattheendofthequarter,andthosesubjecttoretail

investorredemptionsexperiencedoutflows.Privateinvestorswerelessaffectedandremainedopenfor

business,althoughatahigherpricethanbeforethevolatility.

Fiber

•

•

•

•

•

EQTandDigitalBridge-backedZayosecuritizedB2Bfibernetworkassetsinaninauguralthree-tranche$1.4billionABS,includinga$1billionClassAnotesizedat~8xcashflow.TheClassAnotewasratedA-/A-(Fitch/KBRA)andpricedat

ICUR+140foracouponof5.65%.ProceedswereusedtorefinanceaportionofZayo’sexistingfirstliendebtfollowingaseriesofcordialdiscussionswithexistinglendersreportedinthepress.

Unitipriceda$589millionABSatcreditspreads30bpsinsidepricetalk;aroundhalfofUniti’scashflowsarecontractedwithcarriers.Acoupleofweekslater,repeatfiber-to-the-home(FTTH)issuerALLOprinted$200millionatthesamecredit

spreadsasUniti.

MetroCommunications,whichoperatesFTTH,commercialfiber,andfiber-to-the-tower(FTTT)assets,printeda$322millionthree-tranchePrivateABS,includingClassANotesatpricedatICUR+210(6.5%).

Boldynraised$1.2billionofdebt,including$865millionthree-yearandfive-yeartermloanswithcommercialbanksanda$125millionseven-yearnotewithinsurancecompaniesfora7.53%coupon.Lendersregardeditasbelowinvestment-gradecredit.

PRG-backedArchtopFiber,anFTTHplatformintheHudsonValleyandBerkshires,printeda$190millionconstruction

facilitywithaprivatecreditlendertofacilitateitsexpansionplans.HoulihanLokeyservedastheexclusiveplacementagent.

DataCenters

•

•

~$4billionofdatacenterABSclosedinthequarter.ColoABSissuers,Centersquare(f.k.a.Cyxtera)andTierPoint,tappedthemarketforatotalofmorethan$1billion.Switchcompleteda$1.1billionABSand$2.4billionSASBCMBSoffering

securedbyitsLasVegasandRenodatacenters.CyrusOne,Compass,andSabeysimilarlypricedwell-receivedHyperscaleABSdeals.

Projectfinancebankscommitted~$11billiontogreenfieldhyperscaledatacentersduringthequarter.BlueOwlledthe

waywithtwotransactionstotaling$3.6billionforitscampusesinStaffordCounty,Virginia.QTSclosedtwotransactions

totaling$3billionforits108MWRichmondand144MWNewAlbany(Columbus,Ohio)campuses.Rowanalsohadanactivequarter,raisingmorethan$2billionforprojectsattheQuantumLoopholecampusinFrederick,Maryland.

Wireless

•

DASoperatorStrategicVenuePartners,backedbyTigerInfrastructure,raisedasingle-tranche$120millionPrivateABS

ratedBBBbyDBRS.Thetransaction,sizedat10.9xNodeCashFlow,hasafixedprincipalamortizationschedulewithalargebulletinyearfive.ThenoteswerebroadlymarketedtoinsurancecompaniesandpricedatICUR+190fora6.24%coupon.

High-PerformanceCompute

•

AppliedDigitalprinteda$375millionpre-FIDdevelopmentloanforitsEllendale,NorthDakota,campus.Theloanis

intendedtofundthedevelopmentofa100MWdatacenteruntilthesponsorcangetaleasesignedwithahyperscalertosupporttraditionalprojectfinancing.Thesitehasasubstationandgridconnectivity.

8

Source:Bloomberg.

DigitalInfrastructure

InfrastructureFundraising

OverviewofHistoricInfrastructureInvestorFundraising(1)

Q12025markedthethird-strongestfirstquartersince2020,with$48.2billionraised—

drivenlargelybythe€21.5billionfinalcloseofEQTFlagshipFundVI,whichalone

accountedfor46%oftheYTDtotal.NovacapalsosuccessfullycloseditsDigital

InfrastructureFundI,raisingmorethan$1billion.Notably,Q12025fundraisingalready

representsmorethan50%ofthetotalcapitalraisedinallof2024.Around~83%ofcapitalraisedwasallocatedtocore-plus,value-add,andopportunisticstrategies,upfrom67%in

2024.Despitehealthyheadlinefigures,fundraisingremainschallengedbyhighinterest

rates,geopoliticaluncertainty,andreduceddistributionstolimitedpartners,whichlimit

theabilityoflimitedpartnerstorecyclecapitalintonewvintages.Arecord~$440billioniscurrentlybeingtargetedbyinfrastructurefunds,thoughthegrowingsizeandextended

timelinesofthesefundscontinuetoslowoverallfundraisingprogress.Thetop10fundsalonerepresent$141billion,or32%ofthetotalcapitalsought.

CapitalRaised($B)FundCount

225209209

$773B+

RaisedSince2020

194

206

170

176

158

120

94

$181.8

$194.1

$163.1

$134.0

$143.0

$130.7

$128.2

$131.8

$98.0

$91.6

$48.2

201520162017

2021

2019

2018

2020

2022

2023

2024Q1'25

9

Sources:InfrastructureInvestor/Preqin/pressreleases.

(1)ChartDataasofMarch31/2025.

RecentNotableFundraisesCoveringInfrastructureSectorsinQ12025

EQTInfrastructure

VI

Copenhagen

Infrastructure

PartnersFundV

Morganstanley

NorthHaven

Infrastructure

PartnersIV

HullStreetEnergyPartnersIII

FundSize:

€21.5B

FundSize:

€12.0B

FundSize:

$4.1B

FundSize:

€2.2B

Vintage:

Vintage:

Vintage:

Vintage:

2025

2025

2025

2025

InfrastructureFundsinMarket:

BackROCK.KKR

stonepeak

Global

Infrastructure

PartnersV

KKRGlobal

Infrastructure

InvestorsV

Stonepeak

InfrastructureFundV

ISQGlobal

InfrastructureFund

IV

TargetSize:

TargetSize:

TargetSize:

TargetSize:

$25.0B

$20.0B

$15.0B

$15.0B

Strategy:

Strategy:

Strategy:

Strategy:

Core-Plus

Core-Plus

Core-Plus

Value-Add

KeyIndustryTrends

bySector

11

Sources:TMTFinance/PhoneArena/Companypressreleases/Altafibercompanywebsite/IPERealAssets/Businesswire/BroadbandBreakfast/ConnectedBritain/FTTHConference/FTTHCouncil/FiberBroadbandAssociation.

KeyIndustryTrendsbySector

UnitedStatesBroadband

MajorPlayersContinuetoDriveConsolidation

•Ongoingconsolidationinthefibermarket,asmajoroperatorsandinfrastructureplayersrepositionassetstostreamlineoperationsanddrivegrowth.

–AT&TisreportedlyintalkstoacquireLumen’sconsumerfiberbusinessformorethan$5.5billion,strengtheningitsfiberfootprintandbundlingcapabilities.

–LumenisdivestingitsconsumerfiberassetstofocusonAI-drivenenterpriseservices,exitingamarketitbelieveswillconsolidatearoundlargerplayers.

–CrownCastleissellingitsfiberandsmallcellsbusinessesfor$8.5billion,divestingfibertoZayoandsmallcellstoEQT,tofocusonitscoretowerbusiness.

–Zayo’sacquisitionofCrownCastle’smetrofiberassetsfor$4.25billionenhancesitsabilitytosupportAI-drivenconnectivityandnext-gennetworkdemands.

FiberBuild-OutsandAnnouncedExpansions

•Zayoannouncedplanstoexpanditsfibernetworkbymorethan5,000routemiles,aimingtomeetescalatinginfrastructureneedsdrivenbyAIanddata-intensiveapplications.

•LumosannounceditsfirstexpansionintoGeorgia,committingto5,000milesoffibertodeliver100%fiber-opticinternettomorethan320,000homesandbusinessesacrossthestate.

•RippleFiberannounceditsentryintoMassachusetts,startingwithHoldenandWestBoylston,aspartofa$140millionnetworkexpansionsettolaunchservicebymid-2025.

•LyteFiberannouncedthelaunchofitshigh-speedfibernetworkinMarshall,Texas,withmorethan120milesoffibersettoconnectover8,000homesandbusinessesbyyear-end2025.

•EzeeFiberannounceda$400millionexpansionofitsfibernetworkintoWashington,bringingmulti-giginternettoresidentialandbusinesscustomersacrossthegreaterPugetSoundregion,beginninginKent.

EuropeanBroadband

U.K.andEuropeanFiberActivityOverview

•Asforecastedattheendoftheyear,consolidationamongU.K.altnetshascontinuedtobearecurring

themeinQ12025,highlightedbyFullFibre’sagreementtomergewithZzoomm,creatingtheU.K.’sfifth-largestfullfiberfootprint(excludingNexfibre),alongwithfurtherannouncementsofcapitalraises,suchastheScottishNationalInvestmentBankprovidinga£50milliondebttrancheaspartofanaround£100

milliondebtfinancingpackageforGreshamHouse-owned,Scotland-basedbroadbandproviderGoFibre.

•U.K.FTTHcoveragemetricscontinuedtoprogressinQ12025,mainlydrivenbyOpenreach,

VMO2/nexfibre,CityFibre,andNetomnia,whilethemajorityofaltnetsarekeepingbuildplansonpause.

•Altnetsarefocusedonnetworkcommercializationtoincreasetheircustomertake-upandsecureapath

towardprofitability,whileexploringmergersthatcouldprovideattractivefinancialandstrategicsynergies.

•EuropeanFTTHcoveragerateshaveincreased6%YoY,standingat75%;althoughsentimentforB2CFTTHincertainEuropeanmarketsremainschallenging,manyinvestorscontinuetolookforstrong-performingfiberassets.

•Consolidationandongoingimprovedcommercializationofplatformswillultimatelybeacatalysttore-

openthedebtandequitymarketstofiberplatforms,asinvestorswillbemoreinclinedtolookatplatformswithscale,clearequitystories,andstrongKPIs,particularlyintermsofcustomerconnections.

•TheGermanandItalianfibermarketsarestilltrailingbehindotherEuropeanmarketsintermsofcoverage;however,wedoexpecttoseeconsolidationplaysoccurinthecomingyearasoperatorsaimtoestablish

greaterscaleandrationalizecostsviacombinedplatforms,giventhelackofavailableexternalcapital.

•OutsideoftheU.K.andGermany,severalhighlyattractiveEuropeanfibermarketsremain,includingtheNordics,whichbenefitfromlowercompetitionandmateriallyhigherpenetrationrates.

DigitalInfrastructureServicesUpdate

•Infrastructureserviceprovidersfocusingonthefibersubsectorcontinuetoseelowerlevelsofactivityduetoanincreasedfocusoncommercializationratherthanbuild;however,weseepositivesignsasEuropeancountriescontinuetoincreasetheirFTTHcoveragemetrics.

•Themarketcontinuestoseesustainedlevelsofdemandfordatacenterandsubseacablebuildandmaintenanceservicestocontinuetosupportexpansionrequirements.

12

Sources:SEC/FierceTelecom/BusinessWire/BroadbandCommunities/PRNewswire/SynergyResearchGroup/DataCenterFrontier/Telecompetitor/WallStreetResearch/companyfilings/pressreleases/industryresearch.

KeyIndustryTrendsbySector(cont.)

UnitedStatesDataCentersEuropeanDataCenters

CoreWeaveGoesPublicWith$23BillionValuation

•OnMarch28,2025,CoreWeave,aGPUcloudprovider,completeditsinitialpublicoffering(IPO)with37.5millionsharesandastockpriceof~$40,raising$1.5billion.

-CoreWeaveexhibitedimmenserevenuegrowthof737%YoYfrom$228.9millionin2023to$1.9billionin2024,withexpectationsofrevenuehittingmorethan$8billionin2025.

-TheIPOwasdownsizedfromitsoriginalpricingrangeof$47to$55ashareduetomixedinvestorsentimentsurroundingcustomerconcentrationandthecompany’slong-termgrowth.

-Initsfirstweektrading,CoreWeave’sstockpricewasextremelyvolatile,goingaslowas$36andashighas$64,signalingcontinuedspeculationtowardtheinvestmentandtheoverallindustry.

-NVIDIA,CoreWeave’ssecond-largestcustomer,anchoredtheIPOwitha$250millionpurchaseorder,givingthestockacredibilityboost.

•EarlierinMarch,OpenAIsignedastrategic,five-year$11.9billioncontractwithCoreWeavetoprovideAIinfrastructuretosupportOpenAI’smodeltrainingandservicedelivery.

•CoreWeave’sIPOisviewedasatestofthemarket’sconfidenceinthesustainabilityandfutureofAIasoneoftheonlypubliclytradedpure-playAIcompanies.

DataCentersNavigatetheDeepSeekDisruption

●InJanuary2025,DeepSeekdebutedanopen-sourceLLMwithcomparableperformancetoOpenAI’spublicmodel,despiteminimaltrainingexpenses.

●NVIDIA’sstockdroppednearly17%aftertheannouncement,withconcernsthatDeepSeek’scost-effectiveAImodelcouldreducedemandforNVIDIA’shigh-performanceGPUs.

-Withhyperscalersspendingmorethan$200billionincapexthroughout2024,thisnewschallengedthereturnsonAIinfrastructureintheU.S.

-Subsequentanalysisincreasedtheestimatedcosttotrainto$1.3billion,mitigatingmanyoftheconcernsfollowingtheinitialnews.

●Despitethenews,MicrosoftandMetareaffirmedtheirplanstospend$80billionand$60to$65billion,respectively,inAIinfrastructurecapexin2025,suggestingtheyviewDeepSeek’sadvancementsas

catalystsforfurtherAIinvestmentratherthanadetourfromtheircurrentstrategies.

RecentSectorTrends

•FLAP-Dmarketsremaindominant,with702MWpre-leasedin2024,butpowershortagesandland

constraintscontinuetochallengenewdevelopments,especiallyinFrankfurtandLondon,wheredemandishighest.

•Take-up(344MW)continuestooutpacenewsupply(306MW),leadingtolowervacancyratesandrisingrents.SecondarymarketslikeMilan,Madrid,Berlin,andZurichareattractingincreasedinvestmentas

FLAP-Dcitiesstrugglewithexpansionlimits.

•AIandclouddemandaredriving25%CAGRgrowththrough2027,with$255billionprojectedinAIdatacenterinvestmentsfor2025,reinforcingEurope’sstrategicroleinglobalinfrastructureexpansion.

•Powergridconstraintsimpactdevelopmenttimelines,particularlyinAmsterdam,Dublin,andParis,whiletheU.K.hasclassifieddatacentersasnationallysignificantinfrastructureprojects(NSIPs)tostreamlineplanningandapprovals.

•Sustainabilityremainsatoppriority,withoperatorsfocusingonrenewableenergyandefficientcoolingsolutions,particularlyintheNordics,whereaccesstolow-carbonpowergivesacompetitiveedge.

RecentDataCenterDevelopmentsandM&ATransactions

•CastleforgeandGalaxyDataCentersacquiredRedhillDataCentrefromaglobaldatacenteroperator.TheRedhillDataCentrecampusspans11,800squaremetersacrossthreebuildingsandhas26MVAofpower.

•TritaxBigBoxhasacquireda74-acresiteatHeathrow,London,fora147MWdatacenterdevelopment.

•TikehauCapitalacquiredaminoritystakeinEclairionbyinvesting€50million,increasingitstotal

investmentinthecompanyto€160million.Previously,TikehauCapitalhadinvested€110millioninNovember2023.

•CordiantDigitalInfrastructureandTINCwillacquireandcombineBelgiandatacenterproviderDCUandProximusGroup’sdatacenterbusinessforatotalequityconsiderationof€92.3million.

•KDDI’sTelehousehasinvested€1billioninexpandingitsdatacenterfootprintinFrance.Theinvestmentwillseethebuildingofa60,000-square-meter,50MWfacilitynearMarseille.

•TheU.K.’sHMRevenue&Customs(HMRC)taxagencyislookingforahyperscalerpartnerforitsplanneddatacenterexit.Thecontractisvaluedatanestimated£500million,andthedepartmentestimatesthatitwillpublishthetenderofferinMay2025.

KeyIndustryTrendsbySector(cont.)

13

Sources:InsideTowers/TMTFinance/RCRWirelessNews/companyfilings/pressreleases/industryresearch.

UnitedStatesWirelessInfrastructure

M&AandCapital-RaisingActivity

•EQTannounceditwillacquireCrownCastle’sSmallCellsbusinessfor~$4.3billion.CrownCastlerecentlyreportedthatthecompanyhad~115,000smallcellson-airorundercontract.

•AmericanTowera