Typical situation no. 31
An investor has entered exclusive negotiations to buy a 12 MW data center that is 85% leased. The data room holds 1,400 documents. Signing is scheduled in four weeks and the team has no technical staff.
WHAT IS BLOCKING
- Serious risks must be separated from minor reservations in a short time.
- End-of-life equipment, maintenance contracts and the actual spare power capacity have a direct impact on the price.
- A site visit and interviews with the operator are essential, but the seller restricts access.
WHAT WE DO
- Triage of the data room and review of the critical documents.
- Site visit and interviews with the operations team.
- Review of the grid connection, electrical systems, cooling, fire safety, maintenance and past incidents.
- Costing of the capital expenditure required over five and ten years.
WHAT YOU GET
- A technical due diligence report with risks ranked by severity.
- A costed capital expenditure plan that can be used in the price negotiation.
- The warranties to request from the seller.
Typical format: Technical due diligence, three to four weeks. Every assignment is scoped in writing before it starts.
THE EXPERT FOR THIS
Typical situation, based on real enquiries and anonymised. Figures are illustrative.
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