Scaling Racks & Returns: The Ultimate 10-Year Financial Model for Data
Supports up to four revenue streams and up to 10 distinct rack types (cohorts). Allows nuanced pricing and utilization drivers, including rack rent, power charges, cross
Supports up to four revenue streams and up to 10 distinct rack types (cohorts). Allows nuanced pricing and utilization drivers, including rack rent, power charges, cross
Higher electricity prices are typically passed through to tenants; modified gross plus electric lease terms that assign utility costs to the tenant are market standard for project finance and CMBS
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Large enterprise data center setup (200+ racks): $1,000,000+. Digital Infotech Solutions offers tailored rack and stack services to enterprises in the U.S. The company is known for its expertise in data center installations, offering pre-configured, scalable, and highly efficient setups for businesses of all sizes.
The annual cost of powering a rack is determined by its IT power, the facility's PUE, continuous operation (8760 hours/year), and local electricity rates. Annual Cost = Rack IT Power (kW) × PUE × 8760 hours/year × Electricity Rate ($/kWh) This cost factors in IT equipment, cooling overhead, power infrastructure losses, and other facility overheads.
“The U.S. data center market saw the largest pricing increase of all commercial real estate assets last year, which is a testament to the market’s resiliency and impact of robust requirements for available power,” said Pat Lynch, executive managing director for CBRE’s Data Centers Solutions.
Usually, data center financing is structured as a bundled package that combines property acquisition and construction costs with equipment purchasing or leasing into a single loan.