Digital Infrastructure REITs, Data Centers & Project Underwriting
Hyperscale Data-Center REIT $/kW Lease & PUE NOI Formula
Calculate Wholesale Data-Center REIT Annual Base $/kW Lease Revenue ($M), Metered PUE Power Pass-Through Revenue ($M), Facility Cash NOI ($M), and Development Yield-on-Cost (%).
Wholesale data centers lease critical IT kW—not square feet—and pass utility kWh through at zero margin!
Unlike retail colocation cabinets or traditional industrial warehouses, hyperscale AI and cloud data-center halls lease Contracted Critical IT Capacity in megawatts (MW = 1,000 kW) priced in $/kW/month triple-net base rent, while billing actual IT + cooling electricity (IT_MW * Utilization * PUE * 8,760 * $/MWh) as a dollar-for-dollar metered pass-through! Analysts who multiply GAAP Gross Revenue (Base_Rent + Reimbursed_Power) by a fixed NOI margin misprice utility-rate swings: when regional power rises from $80/MWh to $120/MWh, Reimbursed Power Revenue swells while Facility Cash NOI (Base_Lease_Rev - Unreimbursed_Site_OpEx) and Development Yield-on-Cost (Cash_NOI / Dev_CapEx) remain completely insulated!
Verify on a 25.0 MW Hyperscale Campus Hall (80% average IT draw)—Leased_Critical_IT = 25.0 MW (25,000 kW, B2), Monthly_Base_Rent = $140.00/kW/mo (B3 -> Annual Base Lease Revenue = 25,000 * 140 * 12 / 10^6 = $42.00M in E2), Contracted_PUE = 1.25 (B4), Utility_Power_Rate = $80.00/MWh (B5 -> Reimbursed Power = 25 * 0.80 * 1.25 * 8,760 * 80 / 10^6 = $17.52M in E3), Unreimbursed_Site_OpEx = $4.50M/yr (B6), and Turnkey_Dev_CapEx = $300.00M ($12.0M/MW, B7): Facility Cash NOI equals 42.00 - 4.50 = $37.50M (E4), delivering a 12.50% Unlevered Development Yield-on-Cost (E5)!
| Hyperscale Data-Center KPI (25 MW @ $140/kW/mo, 1.25 PUE, $80/MWh, $300M CapEx) | Formula | Verified Output |
|---|---|---|
| Annual Base $/kW Lease Rev ($M) | IT_MW * 1000 * Rent_kW_Mo * 12 / 10^6 | $42.00M ($48.00M @ $160/kW) |
| Metered PUE Power Pass-Through ($M) | IT_MW * 0.80 * PUE * 8760 * Rate_MWh / 10^6 | $17.52M ($26.28M @ $120/MWh) |
| Facility Cash NOI ($M) | Base_Lease_Rev_M - Unreimbursed_OpEx_M | $37.50M ($43.50M @ $160/kW) |
| Development Yield-on-Cost (%) | (Facility_Cash_NOI_M / Dev_CapEx_M) * 100 | 12.50% (14.50% @ $160/kW) |
Data-Center $/kW Lease NOI & Development Yield-on-Cost Formula
Validate IT_MW > 0, Rent_Per_kW > 0, PUE in [1.02, 2.50], Power_Rate >= 0, Unreimbursed_OpEx >= 0, and Dev_CapEx > 0!
=LET(mw_i, B2, rn_k, B3, pu_e, B4, pw_r, B5, op_u, B6, cp_d, B7, IF(OR(mw_i <= 0, rn_k <= 0, pu_e < 1.02, pu_e > 2.5, pw_r < 0, op_u < 0, cp_d <= 0), "Invalid Data Center Input", LET(rv_b, mw_i * rn_k * 12 / 1000, no_i, rv_b - op_u, ROUND((no_i / cp_d) * 100, 2))))Utility Tariff Surge Insulation & AI Liquid-Cooling Rent Hike Checks
Hike Utility_Power_Rate B5 from $80/MWh to $120/MWh: Pass-Through Revenue E3 rises to $26.28M while Cash NOI E4 ($37.50M) and Yield-on-Cost E5 (12.50%) stay unchanged! Next hike Monthly_Base_Rent B3 to $160/kW/mo: Cash NOI E4 jumps to $43.50M and Yield-on-Cost E5 expands to 14.50%!
=IF(ISTEXT(E5), E5, ROUND((B2 * 0.8 * B4 * 8760 * B5) / 1000000, 2))Try the example
Use the original values or change them to test your understanding.