CBRE is capitalizing on explosive data center growth with the acquisition of Direct Line Global, a company that provides technical services to the burgeoning sector.
The move is aligned with CBRE’s plan to invest more heavily in noncyclical business lines, Chief Operating Officer Vikram Kohli said in a news release. Direct Line Global’s technical capabilities will complement facilities management services CBRE already provides.
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“This acquisition fits squarely with our strategy of enhancing our capabilities in asset classes that benefit from secular tailwinds — in this case, the increasing digitization of the global economy,” Kohli said in a statement.
The California-based company installs, maintains and manages data centers on behalf of owners and operators, including hyperscale, colocation and enterprise users. It employs about 1,000 people around the globe, with a considerable number based in Northern Virginia, the largest data center market in the world.
Direct Line Global will be housed under CBRE’s Global Workforce Solutions umbrella, according to the release.
Data centers have undergone a transformation in recent months as demand for cloud services and artificial intelligence reaches new heights. The global market for data center support services is expected to grow by 16% annually through 2028, eventually reaching about $30B, CBRE said in its release.
Investors of all stripes are increasingly planting their flag in the market, with nearly 100% surveyed by CBRE earlier this year saying they plan to increase portfolio allocations in 2024. Transaction volume across North America totaled $4.8B in 2023, a 29% year-over-year increase even as the number of sales declined.
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