Data centres - here today, here tomorrow Investing and financing part 2

Ashurst recently brought together key stakeholders from across the data centre ecosystem to explore the many opportunities and challenges in the industry. In this episode, we share the key takeaways about investing in and financing of data centres.

Experts at a recent seminar hosted by Ashurst deep dived into the investment and funding opportunities associated with data centres. Among the participants and audience were Ashurst’s Ruth Harris, Rebecca Clarke, Chris Grey, and Rhodri Lewis – and in today’s podcast they share the highlights and talking points.

On the investment side, the seminar discussed strong demand, low vacancy rates, and high barriers to entry due to construction costs, regulatory scrutiny, and power access. With major M&A activity already underway, several capital destinations were flagged up including the Nordics, Spain, Italy and Greece, and the importance of subsea cable access and geopolitical factors was emphasised.

From a financing perspective, the move towards longer term lender/sponsor partnerships was covered. Among several hot topics, the seminar explored the challenges of securing early-stage finance, structuring for future asset exits, and lifecycle capex planning amidst rapidly advancing technology. It was also noted that increased lender appetite raises the possibility of earlier involvement in projects and interest in more flexible finance options.

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The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.