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Updated 2026-05-14 · Real Estate · Educational use only ·
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Data Centre Investment Calculator

Data centre yield.

Calculate data centre investment cap rate and net operating income from power capacity, rental rate per kW, occupancy, and operating costs.

What this tool does

This calculator models the income-generation potential of a data centre investment by estimating its capitalization rate and net operating income. It takes your facility cost, total power capacity in kilowatts, monthly rental rate per kW, expected occupancy level, and annual operating expenses, then calculates two key metrics: the stabilised net operating income (revenue minus costs) and the cap rate (NOI divided by facility cost). The rental revenue scales directly with your power capacity, occupancy assumption, and the monthly rate charged—these three inputs have the greatest influence on the result. A typical scenario might compare two facility options with different sizes and occupancy profiles. The calculator assumes stable occupancy and operating costs over the projection period and does not account for capital expenditure cycles, financing costs, or tax effects. Results are for illustration only.

Quick answer: with the default values, the result is 6.40% (Data Centre Cap Rate). Adjust the values below for your own figures.

Enter Values

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Formula Used
Capacity
Monthly rate
Occupancy
Annual opex

Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Data centre investment calculator measures cap rate for colocation and hyperscale facilities. A 100M facility with 10MW capacity at 150 per kW per month, 80% occupancy and 8M annual opex produces 14.4M effective gross income, 6.4M NOI, and a 6.4% cap rate. Demand for compute capacity has grown alongside AI and cloud workloads, and lead times for new hyperscale capacity are commonly measured in years rather than months.

Example: 100,000,000 data centre, 10,000 kW capacity, 150 monthly rate per kW. Gross potential = 18M annually. 80% occupancy = 14.4M effective gross. Operating expenses 8M (cooling, security, staffing, power conditioning). NOI 6.4M. Cap rate 6.4%. That sits within the range commonly quoted for stabilised facilities; ground-up hyperscale developments are often underwritten to higher unlevered targets to compensate for construction and lease-up risk.

Data centre dynamics: (1) Compute demand growth linked to AI and cloud workloads. (2) Power availability has become a limiting factor in established hubs such as Northern Virginia, Dublin, and Singapore, where grid capacity limits or connection moratoria constrain new build. (3) Cooling efficiency, measured as Power Usage Effectiveness (PUE). (4) Customer concentration risk, since a small number of hyperscale tenants account for much of the leased capacity. (5) Lease terms commonly running 10-15 years. (6) High capital intensity, commonly cited at 10-15M per MW. Access: listed data-centre REITs and specialist infrastructure funds. Direct ownership is generally institutional.

A worked example

With the defaults: facility cost of 100,000,000, total kw capacity of 10,000, monthly rate per kw of 150, occupancy of 80%. The tool returns 6.40%.

What moves the number most

The result responds to Facility Cost, Total kW Capacity, Monthly Rate per kW, Occupancy %, and Annual Operating Expenses.

The formula behind this

Annual revenue = kW × monthly rate × 12 × occupancy. NOI = revenue - opex. Cap = NOI/cost.

Where this fits in planning

This is a "what-if" tool, not a forecast. It helps to test ideas: what happens if one of the inputs comes in higher or lower than you first assumed. The value is in the scenarios you run, not the single answer you get from the defaults.

Example Scenario

£100,000,000, 10,000kW × £150/kW/mo at 80% = 6.40%.

Inputs

Facility Cost:£100,000,000
Total kW Capacity:10,000
Monthly Rate per kW:£150
Occupancy %:80%
Annual Operating Expenses:£8,000,000
Expected Result6.40%
Expected Result breakdown
Effective Gross Income$14,400,000.00
NOI$6,400,000.00
Cost per kW$10,000.00
Total Capacity10,000 kW

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes capitalisation rate by first determining annual revenue from your facility. It multiplies total kilowatt capacity by the monthly rate per kilowatt, then by 12 months and occupancy percentage as a decimal, yielding gross annual revenue. Net operating income is derived by subtracting annual operating expenses from this revenue figure. The capitalisation rate is then calculated by dividing net operating income by total facility cost, expressed as a percentage return. The model assumes a stable occupancy level, constant monthly rates, and consistent annual operating expenses across the holding period. It does not account for capital expenditure cycles, financing costs, property appreciation or depreciation, lease escalation clauses, vacancy periods, variable expense structures, or changes in market conditions. The result represents a single-period yield metric based on current inputs and should not be interpreted as a forward projection of returns.

Frequently Asked Questions

How has AI demand affected data centre economics?
Growth in AI and cloud workloads has increased demand for high-density compute capacity, which shows up in the inputs this calculator takes: occupancy levels, achievable rate per kW, and the capital cost per MW of capacity. Reported utilisation in established hubs has been high enough that new hyperscale capacity is often pre-leased before commissioning. The calculator does not model demand directly, so any view on demand is expressed through the figures entered rather than assumed by the tool.
How do power constraints affect siting?
Grid capacity has become a primary site-selection factor in several established hubs, alongside land cost, fibre routes, and climate. Individual hyperscale facilities can require 100-500MW, which is enough that local networks cannot always support several new sites. Some operators have responded by contracting dedicated renewable generation or building on-site capacity.
Data centre vs other commercial property?
Commonly quoted cap rate ranges put data centres at roughly 5-9%, offices 4-8%, industrial 5-8%, and retail 6-10%, with lower figures generally reflecting more sought-after markets. These ranges move with rates and sentiment, so they are orientation rather than benchmarks. Data centres carry longer lease terms, commonly 10-15 years, and require specialised operating expertise that general commercial property does not.
Retail access?
Retail investors typically gain exposure through listed data-centre REITs and specialist infrastructure or real-estate ETFs that hold them; a handful of large operators account for much of the public market capitalisation. Direct ownership of facilities is generally institutional, often with very large minimums.

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