Get Ready for Global Core4!

Market & Site Analysis

Identify Demand & Expansion Requirements: Evaluate the data center’s capacity needs, market competition, and projected growth in target regions.

Location Criteria: Pinpoint strategic geographic areas based on factors such as latency requirements, proximity to customers, and favorable power rates.

Research Local Incentives: Investigate tax breaks, economic development zones, and other incentives that may reduce operating costs.

Site Feasibility & Due Diligence

Zoning & Land Use Regulations: Confirm that the parcel is zoned appropriately for industrial or commercial use with data center compatibility. Investigate special-use permits if needed.

Environmental & Geotechnical Studies: Conduct Phase I/II environmental assessments, soil tests, and flood risk analyses to ensure site suitability.

Power & Connectivity Assessments: Verify robust power infrastructure (sufficient megawatt capacity, substation proximity) and fiber connectivity options from multiple carriers.

Utility Services & Infrastructure: Evaluate water availability (for cooling), sewer capacity, and potential need for on-site wastewater treatment solutions.

Land Acquisition Process

Negotiation & Contract Terms: Engage in purchase negotiations, addressing contingencies such as zoning changes, utility confirmations, and environmental clearances.

Title & Legal Review: Perform a thorough title search to check for liens, easements, or encumbrances. Review local regulations that may impose restrictions on large-scale power usage.

Survey & Boundaries: Obtain or update land surveys (e.g., ALTA survey) to confirm exact acreage, easements, and boundaries.

Existing Facility Acquisition (If Applicable)

Property Condition Assessment: Evaluate the building’s structural integrity, compliance with data center standards (floor load, HVAC systems, etc.), and potential retrofitting costs.

Data Center-Specific Features: Check if the existing facility has adequate fire suppression, backup generators, and security systems to meet modern data center requirements.

Technology Upgrades & Expansion Potential: Assess the feasibility of scaling up power, cooling, and connectivity to meet future capacity demands.

Permitting & Approvals

Municipal & County Permits: Secure building permits, special-use permits, and any required environmental permits.

Community Relations & Public Hearings: Coordinate with local government and stakeholders to address community concerns, especially regarding power usage, noise, and traffic.

Compliance Requirements: Adhere to local, state, and federal regulations (e.g., environmental standards, OSHA, building codes).

Financing & Cost Analysis

Capital Expenditure (CapEx) Evaluation: Estimate land costs, construction/retrofit expenses, and infrastructure upgrades.

Operating Expenditure (OpEx) Forecast: Project utility rates (power, water) and maintenance costs for an accurate long-term financial model.

Financing Options: Explore a combination of loans, private equity, or partnerships with REITs (Real Estate Investment Trusts) specialized in data center projects.

Closing & Post-Closing Activities

Final Site Inspection & Punch List: Verify all contractual obligations have been met and that any construction punch-list items are resolved.

Transfer of Ownership/Lease Signatures: Execute closing documents and finalize property transaction. If leasing back or renting any portion, execute lease or sublease agreements.

Ongoing Operations & Maintenance: Establish a long-term operations plan for power usage, infrastructure maintenance, and expansion.

Exit Strategy & Future Growth

Scalability & Expansion Plans: Plan for future capacity upgrades or the ability to add on to the facility as data demands grow.

Lease vs. Sale Options: Assess whether the asset will be held for long-term operation or positioned as a sale/leaseback opportunity.