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By Sheena Lee

Data storage and communications companies are in play following Verizon’s (NYSE:VZ) acquisition of cloud computing company Terremark Worldwide (NASDAQ:TMRK).

Firms such as AT&T (NYSE:T), CenturyLink (NYSE:CTL) or Windstream (NASDAQ:WIN) could be looking at buying players like Savvis (NASDAQ:SVVS), Rackspace (NYSE:RAX), Cogent Communications Group (NASDAQ:CCOI), Level 3 (NYSE:LVLT) and Limelight Networks (NASDAQ:LLNW), said Oppenheimer analyst Tim Horan.

Shares of data center hosting firm Savvis are higher on deal speculation. Chairman and CEO, James Ousley appeared on CNBC earlier today answering questions about possible acquisition.

Deal Update: ProLogis (NYSE:PLD), the warehouse operator, and the AMB Property Corporation (NYSE:AMB) agreed to merge in a deal that would create a real estate company with a total market value of $24 billion.

“While this may be a merger, it’s likely investors may well regard AMB as the acquirer and ProLogis as the target, given the higher leverage of ProLogis’ balance sheet and, in contrast, the availability of debt to execute for AMB,” FBR Capital Markets analyst Sri Nagarajan said in a note.

Citigroup analyst Michael Bilerman said the combined company would have an enterprise value of over $28 billion, making it the fourth largest REIT. Stifel Nicolaus analysts downgraded ProLogis to Hold from Buy.