Established, profitable colocation data center business with 20+ years of recurring revenue and strong infrastructure. Owners retiring.
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ESTABLISHED BUSINESS
- Recurring Model: Core business stable, monthly fees from clients SMBs & enterprises
- Operational History: 20+ years of continuous operation, consistent profitability
- Industry Position: Operates in a fragmented, high-barrier-to-entry segment with increasing consolidation
- Infrastructure Demand: AI/ML workloads driving increased power and space needs, 3x in next 5 years
CORE BUSINESS
- Stable Contracts: Stable recurring contracts across SMB and mid-market clients
- Service Mix: Cabinet, rack, and cage hosting—recurring MRR, bundled maintenance, and upsell potential on power and space
- Facility Strength: Strategically located facility built for reliability, uptime, and physical security
- Location Type: Outside major cost centers; optimized for power cost and physical security
INFRASTRUCTURE
- Facility: Robust facilities with raised floors, metered power (up to 185W/SF), multiple fiber carriers, and carrier-neutral architecture
- Facility Layouts: Purpose-built with multiple rack, cage, and per-SF packages available
- High Security: 24/7 access, guided FOB entry, CCTV surveillance, and fire-resistant zones. Redundant diesel generator backup systems in place
- Utility Ready: Supports increasing power loads; additional generators can be installed
FINANCIALS
- EBITDA: $243,094
- Asking Price: $2,066,299
- Third Party Multiples (Data Centers): 7.9x - 9.1x
Note: Data Centers typically trade above market multiples given the demand for AI.
INDUSTRY COMPARABLES "COMPS":
- SMB Data Centers: Typically trade 7.9x–9.1x EBITDA in SMB
- Larger Data Centers: Typically trade for 20x - 25x EBITDA
- EBITDA vs SDE: Data Centers typically priced in EBITDA not SDE
- Sector Premium: Unlike general SMBs (3–5x SDE), data centers command premiums, and trade at 20x - 25x EBITDA up market.
OWNER RETIRING AFTER 20+ YEARS
- Owner Transition: After 20 years, owners looking to retire. Potential to negotiate, most likely sell 100% of the business
- Remaining Staff? Potential full-time with mechanical and technical knowledge
- Transition Support: Sellers open to transition support standard market terms
AI MARKET DEMAND
- Industry Tailwinds: Global data center spend forecasted to hit $49B by 2030, growing 10% a year
- Generative AI Infrastructure: Spend expected to grow 3x+ by 2030 $200BN ---> $600BN
- United States: Accounts for roughly 40% of the global market
AI GROWTH
- New AI Customers: 2x expected to each add $10K - $15K per month / EBITDA, $250K per year
- New AI Pricing: Early discount pricing expected to roll off, resulting in +$50,000 in EBITDA
- Total AI Growth: Up $300K this year in incremental EBITDA from AI client growth this year
STRATEGIC BUYER FOCUSED
- Experience Buyer Focus: Generalist buyers will have difficulty winning the deal—must have experience in data centers, infrastructure, or IT services.
WHAT WOULD IT COST TO BUILD THE DATA CENTER IN TODAYS MARKET?
- Estimated Replacement Costs: Estimated new build cost $5.0M–$9.75M, increase in buildout costs power, cooling, labor, and telecom
WHY BUY THIS DATA CENTER VS. BUILD NEW ONE ---> COSTS & PROCESS?
- Avoid construction risk: Avoid 18-month lead time and utility delays.
- Already monetizing AI: Immediate AI clients onboarded & paying contracts
- You can’t build this fast: Lead times for power delivery, network trenching, and permitting can exceed 12–24 months
- Cost overruns are common: Equipment delays, supply chain variability, and local regulatory issues often add 20%+ to pro forma build budget
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