Why Data Centers are Becoming an Increasingly Attractive Asset Class

Ongoing digitalization and the explosive increase in data usage have led to a surge in demand for modern data centers in recent years. Companies in cloud computing, telecommunications, financial services, and industry require highly available, secure, and energy-efficient IT infrastructure to remain competitive.

For investors, this asset class presents compelling advantages: Data center projects are distinguished by long-term lease agreements with highly creditworthy companies, ensuring significant planning certainty. Furthermore, the data center market exhibits less susceptibility to economic fluctuations, as the demand for data storage and processing consistently grows irrespective of economic cycles.

Simultaneously, entry barriers are high. The development of a data center fundamentally differs from the construction of classic commercial or residential properties. Specific requirements for cooling, power supply, fire protection, and IT security make these projects particularly demanding. Furthermore, regulatory requirements are increasing, especially concerning sustainability and energy efficiency.

The Challenges in Data Center Construction

While this asset class is becoming increasingly popular as an investment opportunity, project developers, Building Owners, and financiers face a range of complex challenges.

A critical factor is the high construction costs. Investments for a modern data center often run into the hundreds of millions, as not only the building but also the highly specialized technical infrastructure must be accounted for. Redundant power supply, efficient cooling systems, and stringent security measures necessitate precise budgeting and cost control.

Another critical concern is sustainability. Data center operations are inherently energy-intensive. Regulatory bodies and investors are progressively mandating the adoption of energy-efficient technologies and sustainable operational frameworks. Green data centers, leveraging renewable energy sources, are gaining prominence as a means to mitigate the industry's CO₂ footprint.

Additionally, the complexity of the multi-project management arises. Many companies develop not just a single data center, but entire networks across global locations. This requires comprehensive financial and resource control to ensure efficient implementation and maximum profitability.

How PROBIS optimizes the construction and financing of data centers

In this challenging environment, PROBIS plays a pivotal role. As a leading SaaS platform for cost controlling, financial planning, and risk management, PROBIS delivers the precise tools investors, developers, and financiers require to manage their data center projects efficiently and transparently.

An illustrative case is the Hanau data center project, which PROBIS supported – a state-of-the-art data center developed by NDC-Garbe on behalf of Google. Such large-scale projects underscore the critical importance of precise control and digital transparency at every stage. More about the project

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PROBIS provides companies with continuous control over their budgets and cash flows. The software enables precise forecasting of construction costs, ensuring optimal planning and management of investments. Through the integration of real-time data and AI-driven analytics, cost deviations can be identified early, allowing for prompt initiation of countermeasures.

A significant advantage of PROBIS is its multi-project reporting capability. Companies developing multiple data centers concurrently benefit from a consolidated overview of all financial flows and investments. This not only streamlines strategic management but also enhances transparency for investors and financiers.

A further key feature is automated invoice and contract management. Data center projects involve a multitude of stakeholders, ranging from general contractors and subcontractors to specialized IT service providers. PROBIS ensures seamless documentation and verification of invoices, thereby optimizing cost control and liquidity management.

PROBIS also sets standards in sustainability controlling. The platform enables the collection and analysis of ESG key figures to meet regulatory requirements and strategically manage sustainable investments.

Conclusion: Data Centers are a Key Asset Class – Achieving Success with the Right Technology

The growing importance of data centers as an asset class offers immense opportunities but also places high demands on financial planning, cost management, and regulatory compliance. Without precise control and transparency, construction costs can quickly escalate, jeopardizing profitability.

With PROBIS, investors, developers, and financiers are provided with a customized solution to manage data center projects securely, efficiently, and profitably – from initial budgeting through to final handover.

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