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Maximizing Your Data Center’s Market Appeal: Strategies for a Successful Sale
Effective brand communication is vital for data center operators seeking to attract investors and stand out in a competitive market.
3 Min Read
Image: Alamy
For data center operators looking to attract investors and maximize their potential, effectively communicating their brand's vision and growth strategy is more crucial than ever. A well-defined narrative not only highlights the unique value proposition of a data center business, but also positions it as an attractive acquisition target in an increasingly competitive landscape.
With the increasingly connected nature of day-to-day life and the rapid growth of artificial intelligence, data centers have never been in more demand. The space has attracted a range of players who aren’t traditional technology companies, from real estate developers to nation states.
A robust data center infrastructure is recognized as an essential backbone for future readiness. But if the goal is to exit the business and make a sale, how do you stand out from other players in what is becoming an increasingly crowded space?
With the recent sale of Australian data center business AirTrunk to Blackstone, the world’s largest private equity group for A$24 billion, the potential value of data center businesses has become clear. This acquisition was purportedly driven by the anticipated growth of AI and cloud computing in the Asia-Pacific region.
If the deal goes through it won’t be Blackstone’s first in the data center market. The group’s portfolio includes $55 billion in data centers and others currently being built. It has made no secret to its plans to invest billions in “prospective pipeline development.”
Communicating Potential
Data centers clearly have the potential to prepare for lucrative exits if they can offer investors a clear growth plan. AirTrunk expanded in Japan this year, a market where analysts predicted would offer high growth for data centers as manufacturing processes are digitized. Footprint and vision are key.
To realize its full potential a data center business must communicate this vision and demonstrate its value to both current customers and potential buyers. A strategic marketing and communications plan should be in place that articulates the brand's potential value, makes clear key differentiators, and actively celebrates successes.
Brands working towards the objective of a sale must therefore ensure they have effective strategies to stand out. The essential questions any brand must ask itself when pivoting from growth to exit are:
What is your brand’s story that will excite potential partners, customers, or investors?
What will your targets find if they look for you online?
How well is the business understood by people who don’t do business with it directly?
How has the business evolved and grown over time? Where is it headed?
What value do you bring to the table? What makes you an attractive acquisition target?
Time should be given to answer each point objectively. The answers should then be used to build a process-driven approach to marketing and communications which addresses these.
Sustaining Momentum
Traditionally data centers have focused on events-based marketing, which can be costly and difficult to scale. Taking a broader approach could be more cost-effective and could sustain critical momentum between events. It’s harder to demonstrate growth if you are only talking to your prospects intermittently.
A borderless approach to PR, executive brand building, thought leadership and inbound marketing should all feature in the mix and will prevent the stop-start nature of communications tied only to events. Providing a global footprint and more opportunities to be discovered and share expertise will support the sales team and help demonstrate the critical mass and vision required to attract potential buyers.
A Holistic Approach
At the same time, brands should make it as easy as possible for a potential client to do business. Simplifying the customer journey must be considered. A website refresh might be as simple as refining messaging to make business outcomes clear. Done properly, websites can be central hubs for lead generation activities, rather than simply online brochures.
Now has never been a better time to prepare your data center business for exit. Innovation demands communication. There isn’t any point in differentiating your brand from others in the space if you aren’t going to communicate it with the widest possible footprint. Demonstrating growth and potential with a steady rhythm will not only support the sales team but will position your brand in the ‘one to watch’ space and prime it for sale if that is your objective.
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