About this course
Data centers have emerged as one of the most active asset classes in infrastructure and real estate finance, driven by hyperscaler demand and AI-related compute growth. Building accurate models for data center development requires handling complexities that standard infrastructure or real estate models do not address.
This course provides a practical introduction to analyzing and building operating models for a variety of data centers across hyperscaler, wholesale, and retail colocation clients. Participants will work through the development and construction phase, the operational phase, and financing considerations in detail.
By the end of the session, participants will be able to structure financial models that reflect the unique revenue, cost, and efficiency metrics of data centers, and evaluate project valuation, credit metrics, and investor returns.
What you will learn
Overview of Data Centers
- Data centers as a unique asset class
- Client categories: hyperscaler, wholesale, and retail colocation
- Key revenue, cost, and efficiency metrics
Development & Construction Phase
- Data center development model considerations and structures
- Capex phasing and construction-period assumptions
- Funding mechanics during development
Operational Phase
- Operating revenue and cost drivers
- Real and nominal forecasting
- Maintenance capital expenditure and deferred tax
Three-Statement Model
- Linking the income statement, balance sheet, and cash flow
- Debt considerations and credit metrics
Valuation & Returns Analysis
- Project valuation methodologies
- Investor returns (IRR, MOIC)
- Sensitivities and error checking