Survey of 202 senior executives reveals growing M&A confidence despite widening valuation gaps, and capital markets set to reshape European digital infrastructure financing by 2027.
LONDON, April 27, 2026 /PRNewswire/ -- TMT Finance, the leading source of data and intelligence on M&A, financing and investment in global digital infrastructure, has published its Europe Market Sentiment Report 2026 - a comprehensive survey of 202 senior executives representing leading investors, operators, lenders, and advisors active in European digital infrastructure.
Key Highlights
- 77% of respondents expect digital infrastructure M&A activity to increase over the next 12 months - up from 62% in 2025
- 78% identify valuation gaps as the primary barrier to deal completion - a 30-percentage-point jump year-on-year
- 59% identify AI-linked datacentres as the most attractive M&A segment
- 93% expect only projects with secured land, power, and anchor tenant commitments to proceed to completion
- 77% expect ABS and CMBS to become the dominant source of digital infrastructure debt by 2027
- TMT Finance's proprietary pipeline is tracking 64 anticipated M&A deals and 100 financing deals across European digital infrastructure for 2026
According to the report, market optimism has reached a new high, with 77% of respondents expecting M&A activity to increase over the next 12 months, up from 62% in 2025 and consistent with a globally synchronised uptick in deal expectations driven by the AI infrastructure build-out cycle. TMT Finance's proprietary pipeline reflects this confidence, tracking 64 anticipated M&A deals across all four principal digital infrastructure segments, with datacentres leading on 24 transactions.
AI-linked datacentres remain the standout asset class, identified by 59% of respondents as the most active M&A segment. A decisive 93% of respondents expect the development pipeline to undergo significant natural selection, with only projects that have secured land, power, and anchor tenant commitments - supported by credible financing - proceeding to completion.
Meanwhile, debt markets are shifting decisively from build finance to capital recycling. Refinancing and capital markets take-outs dominate anticipated debt activity at 42%, while 77% of respondents expect ABS and CMBS to become the dominant source of digital infrastructure debt by 2027. European market infrastructure for these instruments remains nascent - only three datacentre ABS issuances have been completed to date - but lender appetite is building.
The Europe Market Sentiment Report 2026 is based on proprietary polling data collected at TMT Finance's annual EMEA conference in London in January 2026, capturing the views of 202 senior executives across finance, advisory, and industry. Combining survey data, proprietary deal-flow intelligence, and expert analysis, it provides a clear view of deal activity, financing trends, and the key opportunities and risks shaping the market in 2026.
Ben Nice, Chief Content Officer, TMT Finance, said: "We are thrilled to launch our inaugural Europe Sentiment Report, combining unique dealmaker intentions data with TMT Finance's proprietary M&A and Debt pipeline data, and our deep editorial insight. The report provides a clear view of a rapidly evolving market, where accelerating M&A activity, AI-driven demand, and growing capital deployment are reshaping investment strategies."
"The findings will enable our clients to identify emerging opportunities, anticipate deal flow, and position effectively in an increasingly competitive market," he added.
Elles Houweling, Editor, Features & Special Content, TMT Finance, said: "Europe's digital infrastructure market is entering a decisive new phase, shifting from expansion to execution, consolidation and capital recycling across datacentres, fibre, towers and telecoms. Contracted hyperscaler revenues remain central to deal underwriting, even as AI-driven growth reshapes the long-term investment thesis - transforming datacentres from capacity plays into strategic energy and compute assets where power security and sovereign priorities increasingly converge. This is reflected in the market's growing selectivity, with 93% of investors expecting only projects with secured land, power, anchor tenants and credible financing to reach completion."
The Europe Market Sentiment Report 2026 is available to TMT Finance subscribers. To request access or find out more, contact subscriptions@tmtfinance.com
Non-subscribers can access the Executive Summary here.
About TMT Finance
TMT Finance is the leading source of data and intelligence on M&A, financing, and investment in global digital infrastructure. We equip investment bankers, investors, industry executives, and advisors with actionable insights.
Founded in 2009 with a mission to support the growth of the digital infrastructure powering our connected world, we bring together essential intelligence, data, and industry leaders to help executives make smarter decisions, faster.
Today, we deliver the sector's leading global business intelligence service - connecting dealmakers with high-value investment and advisory opportunities in digital infrastructure worldwide.
Your radar for deals in digital infrastructure: www.tmtfinance.com
For more information email subscriptions@tmtfinance.com or call +44 (0)20 3965 0245
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