← All glossary terms

Finance, Valuation, and Incentives

Cap rate

Capitalization rate is NOI divided by asset value or purchase price. It is a shorthand valuation metric, but data center assets may trade on power availability, tenant credit, lease term, development risk, and growth options in addition to stabilized NOI.

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Force majeure

Force majeure excuses or extends performance for extraordinary events beyond a party's control, depending on contract language. For data center projects, it should be reviewed against utility delays, supply-chain issues, permitting delays, grid events, labor, and weather.

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UPS

Uninterruptible Power Supply provides short-duration power conditioning and ride-through between utility events and generator availability. UPS topology, battery chemistry, runtime, efficiency, redundancy, and maintenance are central to data center reliability.

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Non-coincident peak

Non-coincident peak is the customer's own maximum demand in a period regardless of whether the grid is peaking at the same time. It is a common basis for distribution or customer demand charges.

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