Only 19% of European data centres are currently controlled by domestic operators. That figure alone explains why governments and corporates across the continent are redirecting capital into local digital infrastructure, and why mid-market TMT assets are drawing increased buyer interest.

The shift is being driven by regulation and procurement policy rather than market sentiment. European data residency requirements are tightening. Public sector contracts are now more likely to require domestic hosting. Defence technology budgets, projected to grow at around 9% annually through 2030, are allocating a meaningful share to secure communications and sovereign cloud. As a result, businesses providing local connectivity, edge computing, and compliant data hosting are becoming more central to buyer focus.

For owners of these assets, the transaction rationale is changing. Buyers are underwriting more than revenue and retention. They are also factoring in regulatory support and the importance of keeping infrastructure within national control. This changes how assets are valued. A mid-market fibre operator or managed hosting provider with government contracts and domestic infrastructure carries a different risk profile to one serving commercial clients on shared global platforms.

The European TMT sector remains fragmented, which creates opportunity. Consolidation is already underway in fibre and data centre markets, and is likely to extend into adjacent segments such as cybersecurity and managed network services. Acquirers with the operational capability to integrate these businesses and offer a single domestic solution will be well positioned as procurement requirements continue to evolve.

For founders and sponsors holding TMT infrastructure assets with domestic exposure, the window to act is now. The regulatory direction is clear. The question is whether you are positioned to capture the premium that comes with it.