Data Center Development

Anyone on here know of good data center developers. Interested in this line of development. Also, if you have any insight on how feasible this would be to on a smaller scale. I only have knowledge in the residential side of development.

In my head after learning how to do large multifamily and btr deals, it shouldn't be too hard to do a 20-30 unit btr deal, but is this the same with data centers? Are they all pretty large deals or could you do some one off deals on the side that are smaller and scale it up? Any information would be helpful. Cheers.

 
Most Helpful

I have a minimal level of insight here- so take this as discussion rather than fact, lol.

But, I think because of the security costs, scale, and utility connections, data centers are a product type that truly benefits from bigger=better. I’m not sure the differentiation in data center caliber (is there even an A vs B?), but it’s an asset class I would imagine is moving towards homogenization due to the need for data security and the sheer volume of important information stored inside. 

From the perspective of someone renting data center space: they’re all mostly high end tech companies who know the value and will pay for the top of the line specs. The only difference then is size and how many servers you can house inside, more = better.

From the developer perspective, as mentioned, there is a ton of expensive “fixed” costs, that are going to largely be there regardless of size. So, you need the size and scale to achieve profitability.

Again, spitballing here but I wouldn’t be too bullish on small scale centers, but maybe there’s some ability to do office to data center conversions?

 

Necessitatibus dolores voluptas libero eaque quas. Quas facilis totam reiciendis esse veritatis cum. Amet porro architecto doloremque nihil maxime optio cumque reiciendis.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • Lazard Freres 06 98.9%
  • JPMorgan Chase 09 98.3%
  • William Blair 03 97.7%
  • Morgan Stanley 04 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (94) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (207) $159
  • Intern/Summer Analyst (151) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
kanon's picture
kanon
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
bolo up's picture
bolo up
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”