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Data-center M&A hit a record in 2025 as AI hyperscalers race to expand computing capacity.
Rate cuts and cheaper financing could further fuel deal activity despite policy uncertainty.
ETFs such as MNA, IAI, KBWB and CHAT provide direct or indirect exposure to AI-led M&A trends.
Global data-center dealmaking surged to a record high through November 2025, thanks to immense demand for computing infrastructure to support the booming use of artificial intelligence (AI), per Reuters, as quoted on Yahoo Finance.
According to S&P Global Market Intelligence, more than 100 data-center transactions took place through November, with the total deal value just under $61 billion, per the same source. Since 2019, data-center dealmaking in the United States and Canada has totaled about $160 billion, while the Asia-Pacific region reached nearly $40 billion and Europe $24.2 billion, per Reuters, as reported on Yahoo Finance.
Tech Giants and AI Driving Demand
Interest in data centers has intensified this year as tech giants and AI hyperscalers have announced billions of dollars in planned capex to scale up infrastructure. AI-related companies have aided much of the Wall Street gains this year.
Note that AI’s transformative potential is leading to more than $1 billion of daily investment in R&D, capital projects, partnerships and acquisitions, indicated Barry Jaber, Strategy&, Global Technology and Telecommunications Deals Leader, PwC UK, as quoted on a PWC article.
However, concerns over high valuations and circular financing in the AI space have raised questions about how quickly these corporates can turn their investments into profits.
Data-Center Investments Surpass Previous Records
Including mergers and acquisitions, asset sales, and equity investments, data-center investments reached nearly $61 billion through November, surpassing 2024's record of $60.81 billion, per the above-mentioned Reuters article.
Meanwhile, Bain & Company’s analysis showed that 2025 is on track to deliver the second-highest total deal value on record, projected at $4.8 trillion – marking a 36% year-over-year jump. Deals worth $5 billion or more accounted for 75% of the growth in deal value. There have been big bets on large-scale, transformational mergers.
Tech M&A deal value is up more than 76% year to date, reaching $478 billion. Notably, a lion’s share of strategic technology deals larger than $500 million has involved AI-native companies this year, according to Bain & Company’s analysis.
A Fall in Interest Rate: A Boost to M&A?
The Fed enacted three rate cuts in 2025. If the move helps in dragging down long-term bond yields, M&A activities should gain as debt financing will be cheaper. However, global economic growth is still not very sound, and the Trump administration’s policy uncertainty might undermine business confidence occasionally.
How to Benefit Through ETFs?
Against this backdrop, investors may want to keep track of NYLI Merger Arbitrage ETF (MNA - Free Report) . MNA is up about 8.7% so far this year.
Moreover, deal-making is always a boon to investment banks. ETFs like iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI - Free Report) and Invesco KBW Bank ETF (KBWB - Free Report) should benefit from such activities.
We should also expect more M&A deals in the near term, mainly in the AI arena. Tech companies are leaving no stone unturned to unlock value in the AI space. Roundhill Generative AI & Technology ETF (CHAT - Free Report) should gain further traction on this ground. The ETF is up about 47.2% this year.
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M&A: An Overlooked ETF Investing Zone of AI Boom?
Key Takeaways
Global data-center dealmaking surged to a record high through November 2025, thanks to immense demand for computing infrastructure to support the booming use of artificial intelligence (AI), per Reuters, as quoted on Yahoo Finance.
According to S&P Global Market Intelligence, more than 100 data-center transactions took place through November, with the total deal value just under $61 billion, per the same source. Since 2019, data-center dealmaking in the United States and Canada has totaled about $160 billion, while the Asia-Pacific region reached nearly $40 billion and Europe $24.2 billion, per Reuters, as reported on Yahoo Finance.
Tech Giants and AI Driving Demand
Interest in data centers has intensified this year as tech giants and AI hyperscalers have announced billions of dollars in planned capex to scale up infrastructure. AI-related companies have aided much of the Wall Street gains this year.
Note that AI’s transformative potential is leading to more than $1 billion of daily investment in R&D, capital projects, partnerships and acquisitions, indicated Barry Jaber, Strategy&, Global Technology and Telecommunications Deals Leader, PwC UK, as quoted on a PWC article.
However, concerns over high valuations and circular financing in the AI space have raised questions about how quickly these corporates can turn their investments into profits.
Data-Center Investments Surpass Previous Records
Including mergers and acquisitions, asset sales, and equity investments, data-center investments reached nearly $61 billion through November, surpassing 2024's record of $60.81 billion, per the above-mentioned Reuters article.
Meanwhile, Bain & Company’s analysis showed that 2025 is on track to deliver the second-highest total deal value on record, projected at $4.8 trillion – marking a 36% year-over-year jump. Deals worth $5 billion or more accounted for 75% of the growth in deal value. There have been big bets on large-scale, transformational mergers.
Tech M&A deal value is up more than 76% year to date, reaching $478 billion. Notably, a lion’s share of strategic technology deals larger than $500 million has involved AI-native companies this year, according to Bain & Company’s analysis.
A Fall in Interest Rate: A Boost to M&A?
The Fed enacted three rate cuts in 2025. If the move helps in dragging down long-term bond yields, M&A activities should gain as debt financing will be cheaper. However, global economic growth is still not very sound, and the Trump administration’s policy uncertainty might undermine business confidence occasionally.
How to Benefit Through ETFs?
Against this backdrop, investors may want to keep track of NYLI Merger Arbitrage ETF (MNA - Free Report) . MNA is up about 8.7% so far this year.
Moreover, deal-making is always a boon to investment banks. ETFs like iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI - Free Report) and Invesco KBW Bank ETF (KBWB - Free Report) should benefit from such activities.
We should also expect more M&A deals in the near term, mainly in the AI arena. Tech companies are leaving no stone unturned to unlock value in the AI space. Roundhill Generative AI & Technology ETF (CHAT - Free Report) should gain further traction on this ground. The ETF is up about 47.2% this year.