May 2026 in data centers.

# May 2026 Executive Summary

Transaction volume surged 543% month-over-month to 90 deals totaling $38.2 billion and 9,380 MW, marking a dramatic acceleration in M&A activity despite a 40% decline in average deal size. The headline driver was Blackstone's acquisition of three Google assets on May 21st, each valued at $5 billion, signaling aggressive portfolio rotation from hyperscalers toward yield-focused institutional capital. Beyond these anchor transactions, the broader deal count tells the story: 90 transactions in a single month versus 14 in April reflects a structural shift in how capacity is being transferred. Regionally, activity concentrated in power-constrained zones—Richland Parish (5,000 MW across 9 facilities) and the emerging One market (5,000 MW single facility) commanded outsized capital, while Ashburn maintained its density franchise with 4,296 MW across 161 properties, underscoring persistent demand for connectivity hubs.

The velocity and composition of May's activity signals a 2–3 quarter repricing of operating assets and a decisive move by GPs to front-run power scarcity. Blackstone's three-tranche Google exit—totaling $15 billion—is not a one-off liquidation but a template for hyperscalers to monetize mature, fully-contracted capacity while construction queues remain backlogged. With 9,380 MW changing hands in a single month, we expect M&A to absorb near-term supply constraints that would otherwise drive lease rates higher; simultaneously, the shift of assets from tech operators to institutional hold-to-maturity vehicles de-risks capex for hyperscalers pursuing next-generation AI clusters. Monitor Richland Parish and Las Cruces (4,500 MW) closely—these emerging powerhouse markets are attracting disproportionate capital relative to connectivity, a mismatch that will drive fiber-route arbitrage and potentially compress economics for later-stage entrants.