When it comes to data center M&As, some of the most valuable assets are measured in megawatts that haven’t yet been delivered. Buyers may be paying not just for buildings and equipment, but for future powered capacity. But how do you put a price on something that still depends on permitting, utility commitments, construction or customer demand?
Writing for Data Center Dynamics, Ling Kong examines how earnouts can help bridge the valuation gap between buyers and sellers by tying part of the purchase price to future milestones. Ling also explains why those milestones should reflect how value is actually created in a data center transaction, whether through power delivery, development progress or customer commitments.
