Data Centre Assets: High-Performance Infrastructure with Long-Term Investment Value
Data Centres 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.
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.
Contact us on enquiries@novelcapital.co.uk to schedule a preliminary discussion.