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Finance, Valuation, and Incentives

Yield on cost

Yield on cost is stabilized NOI divided by total project cost. Developers use it to judge whether projected returns justify construction, power infrastructure, land, entitlement, and leasing risk.

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Approach temperature

Approach temperature is the difference between leaving fluid temperature and the relevant ambient or cooling medium temperature. It helps describe cooling tower, heat exchanger, and chiller performance but needs equipment-specific context.

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White space

White space is the area where IT equipment is placed and revenue-generating compute capacity is typically delivered. It is different from support space, and the ratio between white space and total building area affects density and economics.

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Geotechnical report

Geotechnical report evaluates subsurface soil, rock, groundwater, and foundation conditions. Data center campuses need geotech diligence because heavy equipment, floor loading, substations, stormwater, and grading assumptions depend on ground conditions.

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