Why data centers are becoming increasingly attractive as an asset class

Ongoing digitalization and the explosion in data usage have led to an explosion in demand for modern data centers in recent years. Companies in the cloud computing, telecommunications, financial services and industrial sectors require highly available, secure and energy-efficient IT infrastructure in order to remain competitive.

This asset class offers interesting advantages for investors: Data center projects are characterized by long-term rental agreements with companies with strong credit ratings, which offers a high degree of planning security. In addition, the market for data centers is less susceptible to economic fluctuations, as the demand for data storage and processing is constantly growing regardless of economic cycles.

At the same time, the barriers to entry are high. The development of a data center differs fundamentally from the construction of classic commercial or residential properties. Special requirements for cooling, power supply, fire protection and IT security make these projects particularly challenging. Regulatory requirements are also increasing, particularly with regard to sustainability and energy efficiency.

The challenges of building data centers

While the asset class is becoming increasingly popular as an investment opportunity, project developers, builders and financiers are facing a number of complex challenges.

One decisive factor is the high construction costs. Investments for a modern data center are often in the three-digit million range, as not only the building but also the highly specialized technical infrastructure must be taken into account. A redundant power supply, efficient cooling systems and strict security precautions require precise budgeting and cost control.

Another key issue is sustainability. The operation of data centers is extremely energy-intensive. Regulatory authorities and investors are increasingly demanding the use of energy-efficient technologies and sustainable operating concepts. Green data centers that rely on renewable energies are increasingly coming into focus in order to reduce the industry's carbon footprint.

Added to this is the complexity of multi-project management. Many companies develop not just a single data center, but entire networks at locations worldwide. This requires overarching management of finances and resources to ensure efficient implementation and maximum profitability.

How PROBIS optimizes the construction and financing of data centers

PROBIS plays a decisive role in this challenging environment. As the leading SaaS platform for cost controlling, financial planning and risk management, PROBIS offers exactly the tools that investors, developers and financiers need to manage their data center projects efficiently and transparently.

One example of this is the data center project in Hanau, which PROBIS was able to support - a state-of-the-art data center developed by NDC-Garbe on behalf of Google. Such large-scale projects illustrate the importance of precise control and digital transparency at every stage of the project. More about the project

‍

‍

PROBIS gives companies end-to-end control over their budgets and cash flows. The software enables precise forecasting of construction costs and ensures that investments are optimally planned and managed. By integrating real-time data and AI-supported analyses, cost deviations can be identified at an early stage and countermeasures can be initiated.

A particular advantage of PROBIS is the possibility of multi-project reporting. Companies that develop several data centers in parallel benefit from a uniform overview of all financial flows and investments. This not only facilitates strategic management, but also increases transparency for investors and financiers.

Another key feature is automated invoice and contract management. Data center projects involve numerous stakeholders - from general contractors and subcontractors to specialist IT service providers. PROBIS ensures seamless documentation and checking of invoices in order to optimize cost control and liquidity management.

PROBIS also sets standards when it comes to sustainability controlling. The platform enables ESG indicators to be recorded and analyzed in order to meet regulatory requirements and manage sustainable investments in a targeted manner.

Conclusion: Data centers are a key asset class - with the right technology for success

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

PROBIS provides investors, developers and financiers with a tailor-made solution for managing data center projects securely, efficiently and profitably - from initial budgeting to final handover.

‍