Digital Realty is looking to make a bid for US data centre firm Telx Group Inc, Reuters has reported.
A deal could be worth more than $2 billion (£1.3bn), with sources claiming Digital Realty would diversify its business with the buyup. Sources also said the bidding is still in early stages.
Digital Realty, a San Francisco-based data centre real estate company, rents out land and space for which data centre operators can use.
Sources said that Digital Realty is just one of a number of bidders looking to make a deal on Telx.
New York-based Telx runs 20 data centres in the US. The deal would follow the trend of consolidation the the global data centre space, coming shortly after the £2.35bn Equinix purchase of European data centre operator Telecity.
TechWeekEurope has requested comment from both Telx and Digital Realty. Telx declined to offer comment on the matter, while we are still waiting to hear from Digital Realty.
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