Data Center Financial Model - 25 MW

This financial model evaluates a 40 MW greenfield data center project in Rajasthan, developed in three phases between 2025 and 2028, with commercial operations starting in 2027. The model integrates multiple revenue sources, detailed operating and capital cost structures, applicable government incentives, and full financial statements to assess project bankability and investor attractiveness.

Key financial outcomes include a Project IRR of 18.8%, Equity IRR of 31.5%, and a maximum DSCR of 2.97x on a total capital expenditure of ~₹2,815 Cr. Capacity is distributed across racks (~15.8 MW), cloud (~6 MW), and utilities/cooling (~18 MW). Revenues are diversified through rack rentals, cloud services across VM categories, and software licensing (middleware, OS, and database). Escalations are assumed at 5% annually for rack rentals and 8% for cloud, with occupancy stabilizing at 65%.

OPEX is anchored around power cost (₹7 lakh/MW/month), AMC/CMC, and proportional software-linked expenses, amounting to ~50% of revenues at maturity. CAPEX includes land acquisition of 5 acres and phased construction spreads. Subsidies cover 10–20% of fixed capital and 1–1.4% of turnover for 5 years.

The model demonstrates robust equity returns, manageable leverage, and resilient cash flows, making the project suitable for lenders, PE investors, and strategic partners.