What do lenders primarily assess when considering financing for data centers?

When lenders evaluate financing for data centers, operator expertise is a primary consideration because the success and stability of the data center largely depend on the management's ability to efficiently operate and maintain the facility. An experienced operator has the knowledge and skills to navigate the complex technology and operational requirements of a data center, including power management, cooling systems, security, and data integrity. This operational expertise directly impacts the center's ability to attract and retain tenants, manage costs, and respond to the rapidly evolving demands of the technology sector.

While factors like infrastructure cost, market trends, and historical occupancy rates are also important in the overall assessment, they do not hold as significant a weight in the lender's decision-making process as the operator's capability. Understanding that a skilled operator can effectively manage the center can significantly lessen the perceived risk associated with the loan, thus influencing lenders' willingness to finance the project.