TMT Sector: The transformation of an industry at the forefront of technological development

Massive digitization and the rise of new technologies, like AI, have accelerated the growth of the Technology, Media and Communications (TMT) sector, along with the overall economy due to their ability to enable growth in other industries.

The TMT sector (Telecommunications, Media and Technology) is not only a dynamic and transforming industry in its own right, but it also serves as a key enabler of growth in other industries such as industrial manufacturing, healthcare and automotive sector. It does so by providing the infrastructure and critical technologies necessary for their digital transformation.

After years of investment in infrastructure by operators, the Telecommunications sector is undergoing a complex transformation. Operators' leverage levels have led them to focus on optimizing their financial structures. This shift towards operators with more asset-light business models has resulted in a wave of Project Finance and M&A, bringing new investors into the Digital Infrastructure space. In this environment of strategic changes, having partners like BBVA CIB is critical, which has a deep TMT sector knowledge and expertise in offering financing and advisory solutions. According to Ksenia Nekrasova, Global Sector Head of the TMT sector at BBVA CIB, “this trend has positioned BBVA CIB as a key player in the market, providing in-depth knowledge and expertise thanks to its support to major players in these processes. BBVA's experience in structuring complex transactions and advising on strategic decisions has been a key differentiator. As well as continuing to support our clients through corporate transactional solutions, such as Mass Receivables Factoring or Guarantees for network deployment”.

Meanwhile, the Media sector is facing a new wave of investment driven by the massive adoption of artificial intelligence (AI). This technology is unlocking unprecedented levels of efficiency, optimizing processes such as content creation and personalization at scale. In addition, AI provides advanced data analytics capabilities, enabling companies to better understand consumer preferences. Companies in the sector, from the entertainment industry to distribution and advertising agencies, will need to make significant investments in new tools to remain competitive over the next few years.

In the Technology sector, one of the key factors transforming the sector's value chain is the rise of Nearshoring initiatives, driven by government efforts to reduce dependence on Asian supply chains, especially in the semiconductor subsector. Large-scale investment plans are currently underway in Europe, the United States and Mexico, where BBVA has a comprehensive presence that allows it to support its clients in this new phase of the sector. According to Ksenia Nekrasova, “BBVA CIB is uniquely positioned to accompany technology companies in these initiatives, providing comprehensive solutions in supply chain finance, financing and capital markets.”

Sustainability in the TMT sector

Sustainability is another key factor shaping the future of the TMT sector. Data centers, which underpin much of the digital economy, are in a phase of exponential expansion. Although solutions such as green PPAs are helping to mitigate their environmental impact, these facilities remain highly intensive in energy and water consumption. BBVA CIB advises large investors in data center infrastructure, not only on project financing, but also on ESG Advisory issues, helping companies to achieve their medium- and long-term sustainability goals.

In terms of social sustainability, BBVA has played a key role in supporting fiber optic infrastructure projects that bring high-speed internet to rural areas in several countries, promoting the social and economic development of these regions. BBVA's support of these initiatives reflects its commitment to sustainability and positive impact on the communities where it operates.

BBVA CIB's global presence, its comprehensive capabilities in investment banking, transactional banking and capital markets, and its deep knowledge of the sector, allows it to act as a strategic partner for companies in the TMT sector, accompanying them at every stage of growth and helping them navigate the challenges and opportunities presented by this constantly evolving environment.