Data Centre & Co-Location Business — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
7×
Typical
10×
Max
14×
Revenue Model
Recurring
Capital Intensity
High
A typical multiple of 10× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Data centre and co-location businesses typically trade at 7×–14× EBITDA. Long-term lease income from hyperscaler and enterprise tenants, power infrastructure investment creating barriers to entry, and growing AI and cloud workload demand support premium valuations. Critical infrastructure status and ESG-compliant energy sourcing further enhance buyer interest. Power availability constraints and energy cost volatility are the primary risk factors. Asset ownership, contracted revenue, utilisation levels and infrastructure characteristics can materially affect valuation.
Key Value Drivers
- Long-term lease income from hyperscaler tenants
- Power infrastructure creating barriers to entry
- AI and cloud workload demand
- Critical infrastructure classification
- ESG-compliant renewable energy sourcing
Key Risks
- Power availability and grid connection constraints
- Energy cost volatility
- Large capital requirements for capacity expansion
- Tenant concentration in major hyperscalers
- Regulatory and planning constraints on new facilities
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.