Megawatts describe how big a data centre is, not what it is worth. A buyer values the income a site can produce and how secure that income is. A site full of customers on long contracts, with enough power to grow and many network connections, earns more and more reliably than an identical building that is empty or short of power. That is why two data centres of the same size can be valued very differently.
Valued on income
Digital Realty explains in its annual report that it values operating properties by an income approach, using either a discounted cash flow analysis or a capitalisation rate applied to a property's net operating income. It records separately the value of leases already in place, because having in-place tenants allows buyers to avoid the costs and lost rent of leasing up a property.
What moves the value
| Driver | Why it matters | What owners report |
|---|---|---|
| Signed customers and contract length | Secure, predictable income | Digital Realty: larger deployments on contracts generally 5 to 10 or more years |
| Spread of customers | Less dependence on any one | Digital Realty: more than 5,000 customers, none above about 11.5% of annualised recurring revenue at the end of 2024 |
| Power | Without it, space cannot be leased | Equinix: power, not space, is a limiting factor in many of its sites |
| Network connections | Customers pay to connect to each other | Equinix: diverse carrier fibre networks in its sites are critical |
| Location and timing | Scarce capacity commands better terms | CBRE: primary North American market vacancy at a record low of 1.4% in the first half of 2026 |
Power as the scarce ingredient
Because new capacity depends on power, a site that already has it is worth more. JLL reports that the average wait for a grid connection in primary data centre markets exceeds four years, and CBRE reports that commitments had been made on 80.4% of all capacity being built in North America in the first half of 2026. Digital Realty also notes that growing interest from private investors has generally pushed capitalisation rates lower, which raises values for the same income.
What is not certain
- Valuation depends on interest rates, investor appetite and the market at the time; none of the figures here are values of any particular site.
- Company and broker figures describe their own portfolios and markets, mostly in the United States.
Sources and method
- Digital Realty Trust, Inc., Annual Report on Form 10-K for the year ended 31 December 2024. https://www.sec.gov/Archives/edgar/data/1297996/000155837025001424/dlr-20241231x10k.htm
- Equinix, Inc., Annual Report on Form 10-K for the year ended 31 December 2024. https://www.sec.gov/Archives/edgar/data/1101239/000162828025005126/eqix-20241231.htm
- Equinix, Inc., Annual Report on Form 10-K for the year ended 31 December 2023. https://www.sec.gov/Archives/edgar/data/1101239/000162828024005350/eqix-20231231.htm
- Equinix, Inc., 2024 Annual Report to shareholders. https://www.sec.gov/Archives/edgar/data/1101239/000114036125013274/ef20047153_ars.pdf
- CBRE, North America Data Center Trends H1 2026, 27 August 2026. https://www.cbre.com/insights/books/north-america-data-center-trends-h1-2026
- JLL, Global Data Center Outlook, 5 January 2026. https://www.jll.com/en-us/insights/market-outlook/data-center-outlook
Method: each link was opened on 29 October 2026 and every figure was taken from the page or filing cited beside it, in the currency stated there; shares marked as calculated are simple arithmetic on the cited figures. Company and consultancy figures describe their own data and models; they are not recommendations.
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This article provides general information, not investment advice or an offer of securities.