The calendar can matter more than the rent
Two campuses with the same power envelope and tenant profile can now trade a full turn apart on land basis simply because one has a signed interconnection agreement with a firm energization window and the other remains in the queue.
Revenue starts when power arrives, not when the land closes. Land is the cheapest data center input and the fastest to acquire; the schedule is the expensive part, and buyers are now underwriting it.
Why schedule delays affect returns
Each quarter of slippage delays first revenue, keeps cash equity tied up longer, and pushes the exit further out. On a phased build, a two-quarter energization delay usually moves IRR more than a 5% change in land basis. Sponsors who price land aggressively but treat the schedule as a soft assumption may be taking risk in the wrong direction.
Four items to model together
- Land basis in both dollars per acre and dollars per kW.
- A power schedule tracking MW contracted against MW energized month by month.
- Construction spend phased against the energization date, not the calendar.
- Lease commencement tied to that same date, so rent and capex move together.
Questions for diligence
- Who holds the interconnection position, and is it assignable?
- What must be energized before the first megawatt can be billed?
- What does a two-quarter delay do to the equity multiple?
Model the deal in one place, including power dates: https://www.dijasoft.com/data-center-investment-management-software