Telecom and Digital Infrastructure M&A: Lane 1B H2 2026
Global data center capital expenditure reached USD 455 billion in 2025 and is tracking toward USD 525 billion in 2026, with hyperscaler build commitments through 2028 exceeding USD 1.1 trillion cumulative. Underneath those headline numbers sits a services and infrastructure support layer that most capital markets coverage ignores: fiber contractors, tower services companies, data center service providers, network operations firms, and managed connectivity operators. Mergermarket recorded 187 announced transactions in this segment during the first three quarters of 2026, up 34 percent against the equivalent 2024 window, with sponsors accounting for 58 percent of volume against 42 percent for strategics.
This paper argues that digital infrastructure services M&A has entered a distinct phase. Buyer composition has broadened across five categories spanning dedicated infrastructure-services sponsors, broader business-services sponsors, tower and data center REIT corporate development, tier-one telecom operators, and international acquirers. Process dynamics have tightened, with median LOI timelines compressing from 118 days in 2023 to 87 days in 2026. Valuation multiples have stratified into two bands: recurring-contract-backed businesses cleared at a median 11.2 times EBITDA while project-based businesses cleared at 6.8 times, a spread of 4.4 turns that has more than doubled since 2022.
Our forward view: announced volume will remain elevated through H1 2027 as hyperscaler capex continues to expand, but process discipline on the seller side will separate outcomes materially. Founders who prepare correctly on customer concentration, backlog visibility, EBITDA quality, labor diligence, and working capital mechanics clear four to six turns higher than those who do not.
- Mergermarket recorded 187 announced digital infrastructure services transactions in Q1-Q3 2026, up 34 percent versus the equivalent 2024 window (Source: Mergermarket Q3 2026 Global M&A Report).
- Hyperscaler 2026 capex guidance aggregates to USD 512 billion across the five largest US buyers, up from USD 234 billion in 2023, with the services and support share expanding from 8.1 percent in 2022 to 11.4 percent in 2025 (Source: Bloomberg Q3 2026 earnings; S&P Capital IQ Q3 2026).
- Sponsor-led transactions represented 58 percent of announced volume in Q1-Q3 2026, against 39 to 44 percent in 2022-2023 (Source: PitchBook M&A October 2026).
- Recurring-revenue businesses cleared at a median 11.2 times EBITDA while project-based businesses cleared at 6.8 times, a 4.4-turn spread versus 2.1 turns in 2022 (Source: S&P Capital IQ October 2026).
- International acquirers accounted for 22 percent of announced transactions in Q1-Q3 2026, up from 14 percent in 2024, and set the clearing multiple in six of the ten largest transactions (Source: Mergermarket October 2026; Bloomberg October 2026).
- Median time from process launch to signed LOI compressed to 87 days in Q1-Q3 2026, against 118 days in 2023 (Source: S&P Capital IQ October 2026).
FAQ
How large is the digital infrastructure services M&A market in 2026?
Mergermarket recorded 187 announced transactions in the digital infrastructure services segment during the first three quarters of 2026, up 34 percent against the equivalent 2024 window. PitchBook, using a slightly different taxonomy, counts 203 announced transactions in the same window. Median announced enterprise value was USD 62 million, up from USD 41 million in the equivalent 2024 window.
Who is buying digital infrastructure services businesses in 2026?
Buyer composition divides into five categories: sponsors with dedicated infrastructure services strategies (34 percent of announced volume), sponsors running broader business services strategies (24 percent), strategic corporate development at tower and data center REITs (14 percent), tier-one telecom operators (6 percent), and international acquirers (22 percent). Sponsor-led transactions represented 58 percent of announced volume in Q1-Q3 2026.
What are the current valuation multiples in digital infrastructure services M&A?
Multiples have stratified into two bands. Recurring-revenue businesses cleared at a median 11.2 times EBITDA in Q1-Q3 2026. Project-based businesses cleared at 6.8 times. Sub-segment medians: fiber and outside plant 7.4 times, tower services 9.8 times, data center services 10.4 times, managed connectivity 12.1 times, network operations 8.9 times.
What diligence issues most commonly compress multiples in this lane?
Five variables consistently separate outcomes: customer concentration above 25 percent from any single customer, contracted backlog visibility below 18 months, EBITDA quality-of-earnings adjustments beyond 15 percent of seller-presented figures, labor and safety records with unresolved incident history, and working capital peg mechanics that favor the buyer at close. Sellers who front-load these five before launch preserve meaningful multiple.
Who is Yanne Capital?
Yanne Capital is an independent boutique investment bank advising growth-stage companies on equity, debt, and M&A transactions across 26 sectors, with 240+ closed deals and relationships with 3,500+ institutional investors globally.
Where can a founder reach Yanne Capital?
contact@yannecapital.com — the firm inbox routes to the closer best fit for the mandate, and Yanne Capital responds to every inbound within 48 hours.
Discuss this with our team
If you are a founder or owner in fiber services, tower services, data center services, managed connectivity, or network operations, and you are 12 to 24 months from a potential capital event, the diligence preparation window matters more than the timing of process launch. Reach out to discuss how the specific variables in your business map against the two-band valuation framework in this paper at contact@yannecapital.com.