Data Centers represent one of the most resilient and future-proof asset classes in today’s digital economy. Purpose-built or retrofitted to support hyperscale cloud providers, enterprise tenants, and public workloads, these facilities deliver consistent income streams backed by long-term leases, mission-critical usage, and growing demand for global data capacity.

The following section outlines a research framework used to analyse technical infrastructure assets, particularly those designed to support data centres and related digital services. Our internal approach focuses on understanding the structural, operational, and contractual characteristics that contribute to long-term stability and reliability. This includes examining redundancy standards, power and cooling systems, network connectivity, and other technical features that influence operational performance. The overview highlights key attributes that shape how such facilities function and respond to evolving digital and cloud-driven demands, without presenting these assets as available for investment.

In studying these assets, the framework also considers lease and income characteristics from an analytical perspective. Long-term contractual arrangements, indexed escalations, tenant credit profiles, and operational risk factors are reviewed to understand the dynamics that contribute to stable revenue streams. The analysis emphasizes the interactions between lease terms, occupancy, and the broader technical and operational environment, providing a lens for understanding potential variability in cash flows under different scenarios. All observations are made for internal research purposes and do not constitute advice or an offer of investment services. 

Finally, the framework examines location and market fundamentals that affect the operational and strategic characteristics of technical infrastructure assets. Factors such as proximity to network interconnection points, access to resilient power and fibre infrastructure, supply constraints, and competitive barriers are considered to develop a holistic understanding of these facilities’ behaviour within the broader infrastructure landscape. By studying these elements, the analysis provides insight into the durability, operational resilience, and hypothetical secondary-market dynamics of technical infrastructure assets, entirely as part of internal research.

Investment-Grade Technical Infrastructure

• Typically built to Tier III/Tier IV redundancy standards.

• Dual-fed power supply with UPS and generator backup.

• Precision cooling and HVAC systems to maintain controlled environmental conditions.

• Carrier-neutral facilities with multiple fibre entry points for redundancy.

• Growth driven by cloud adoption, digital transformation, AI workloads, and low-latency application demands.

Lease & Income 

• Long-term leases (often 10–20 years) with triple-net or modified gross terms.

• Low tenant churn due to high migration costs and operational risk of relocation.

• Indexed rental escalations and power usage pass-through clauses common.

• High tenant credit quality in hyperscale and colocation segments.

Location & Market Fundamentals

• Proximity to dense network interconnection points.

• Access to high-capacity fibre and resilient power infrastructure.

• Limited supply due to zoning, utility constraints, and construction complexity.

• Strong defensive characteristics in established connectivity hubs.

Asset Characteristics

• Stable Cash Flows:
  Long-term contracts with creditworthy tenants—often Fortune 500 or hyperscale clients—reduce vacancy risk and improve NOI predictability.

• High Barrier to Entry:
  Significant capex, power and fibre requirements, and regulatory approvals create strong moat characteristics for existing facilities.

• Attractive Exit Potential:
  Strong secondary market interest from REITs, sovereign wealth funds, and infrastructure investors ensures competitive valuation and liquidity options.