INTRODUCTION Contributed by: George Casey, Linklaters
Expanding or building more digital infrastruc- ture is not just about the challenges of rais- ing or deploying greater investments in digital infrastructure. Different jurisdictions and regions globally face different challenges in expand- ing their digital infrastructure, including foreign investment regulations, local planning restric- tions and the need for stable electricity connec- tivity for certain digital infrastructure (such as data centres and telecommunications towers). Regulatory Tightening As deal making in the technology industry has become increasingly more global, and with technology often being viewed as a strategic, defence and national security priority, regula- tors in different jurisdictions have been tight- ening requirements in their markets. Antitrust authorities have been challenging technology transactions more aggressively (even challeng- ing perceived dominance of tech companies in a particular market), while foreign direct invest- ment (FDI) regulations have been tightened in different parts of the world to protect nascent technologies from being acquired by foreign buyers. For example, foreign investment regulators have been scrutinising the scope for data centres to provide hostile actors access to sensitive data, or control of the data centre to cause disrup- tion or otherwise compromise national security interests. Specifically, the USA recently strength- ened its FDI regulations and introduced manda- tory filings, with a specific focus on the technol- ogy industry. France, Germany and the UK have adopted stricter requirements for acquisitions of tech companies in their jurisdictions, and the EU has adopted new co-ordination regulations across the region for sharing information and collaborating in FDI enforcement.
The US antitrust regulatory landscape, in par- ticular, has seen significant developments in 2024. After more than two years of drafting, and following a public consultation period, on 10 October 2024 the FTC announced final chang- es to the HSR filing form applicable to report- able transactions. These changes significantly increase the burden of disclosure requirements on filing parties, including more expansive docu- ment productions, narratives on market dynam- ics, and information on the board membership of the acquiring person’s officers and directors. Given the increasing cyber-threat landscape, governments are also focusing on cybersecu- rity for critical infrastructure. In 2025, we expect to see an increase in cyber-specific regulation in The first half of 2024 saw a moderate rebound in global tech investment after a consistent decline since reaching an all-time high in 2021, and with private equity and venture capital (VC) sponsors holding a record level of dry powder, the momen- tum is likely to continue through the end of the year. Investment activity involving data centres and cloud services has been a major highlight in 2024, with US-based data centre operator Van- tage (USD9.2 billion) and cloud infrastructure platform Coreweave (USD8.6 billion) securing the largest funding rounds in Q1 and Q2, respec- tively. Continuing with the theme of the year, AI- related deals have also been a major factor in 2024, led by the USD6 billion VC investment in xAI (a US-based developer of AI platforms) and the USD4 billion late-stage funding in Anthropic (a US-based AI company). the EU and the USA. Volume of M&A Deals Tech M&A also experienced a mild recovery in 2024, largely due to the lowering of interest rates from the European Central Bank, the Bank of
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