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Selling a Data Center or Colocation Business in 2026

Quick Answer

A data center or colocation business in 2026 is valued on a multiple of recurring (mostly contracted) EBITDA, and the multiples are exceptional by any normal standard: data center platform acquisitions over the past several years have ranged roughly 20x to 30x EV/EBITDA, with premium strategic assets priced around 30x run-rate EBITDA, versus around 16x for the broader private-infrastructure universe, smaller, single-site, lower-utilization colocation operators trade below that band (often low-to-mid teens on EBITDA, sometimes valued partly on the real estate and power capacity), while scaled, high-utilization, well-located facilities with strong power positions and contracted hyperscale or enterprise tenants command the top. The biggest value drivers are the contracted, recurring revenue base and its tenant quality and lease term (MW or kW under signed multi-year leases, weighted-average remaining lease term, tenant credit, with hyperscale and large enterprise tenants on long leases the most valuable), power availability and cost (secured utility power capacity, expansion rights, and a competitive power price are the scarcest and most valuable asset in the business right now, as power, not land or capital, is the binding constraint on data center growth), location (proximity to major metros, fiber connectivity, network density, and access to power), capacity and utilization (built MW, leased MW, headroom, and the development pipeline of additional capacity rights), efficiency (PUE and design quality), connectivity and interconnection revenue (carrier-dense facilities with cross-connect revenue carry premiums), and the build/expansion pipeline (entitled, powered land for future capacity is hugely valuable given the supply shortage). Active buyers include data center REITs and operators, infrastructure private equity and dedicated digital-infrastructure funds, hyperscalers and their build partners, and strategic acquirers, the segment has sustained intense competition from both PE and strategics. Several buyers in CT’s network target data center, colocation, and digital-infrastructure businesses. Most data center sales close in 120 to 270 days (longer because of the power, real estate, and infrastructure diligence).

A data center or colocation business is valued on contracted recurring EBITDA, and the multiples are unlike almost anything else, recent platform deals have ranged roughly 20x to 30x EV/EBITDA, with premium assets around 30x, because the demand (driven by cloud and AI) vastly exceeds the supply of available, powered, well-located capacity. But that’s for scaled, high-utilization facilities with secured power, strong locations, and contracted hyperscale/enterprise tenants; smaller, single-site, lower-utilization operators trade well below that. The scarcest and most valuable thing in the business right now is power, secured utility capacity and expansion rights, not land, not buildings, not capital. This guide covers the multiples, the value-driver math, the REIT/infrastructure/hyperscale buyers, what kills deals, and the process.

We are CT Acquisitions, a buy-side M&A advisory firm with buyers in our network actively acquiring data center, colocation, and digital-infrastructure businesses. Sellers pay nothing, the buyer pays our fee at closing. See also our guides on selling an IT / MSP business, selling a cybersecurity services company, and selling a records management business.

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What this guide covers

Smaller, single-site, lower-utilization colocation operator: typically low-to-mid teens on EBITDA (sometimes valued partly on real estate + power capacity)
Scaled, high-utilization facilities with secured power, strong locations, contracted hyperscale/enterprise tenants: the premium tier, recent platform deals roughly 20x-30x EV/EBITDA, premium assets ~30x
Benchmark: data center platform multiples (~20x-30x EBITDA) run well above the broader private-infrastructure universe (~16x)
Biggest value drivers: contracted recurring revenue + tenant quality + lease term (MW/kW under signed leases, WALT, tenant credit), power availability and cost (the binding constraint), location/connectivity, capacity and utilization, efficiency (PUE), interconnection revenue, and the build/expansion pipeline (entitled, powered land)
Active buyers: data center REITs and operators, infrastructure PE and digital-infrastructure funds, hyperscalers and build partners, strategic acquirers; we have buyers in our network
Free valuation: our 90-second tool gives a starting range; data center valuation is highly asset-specific, a conversation about your power, tenants, and pipeline is the real exercise

What data center and colocation buyers actually pay for in 2026

Smaller, single-site, lower-utilization operator

Typical valuation: low-to-mid teens on EBITDA, and sometimes valued partly on the underlying real estate and, critically, the secured power capacity rather than purely on cash flow, because a partially-leased facility’s value to a buyer is as much about the runway to fill it (and the power available to do so) as about current EBITDA. Buyer pool: larger regional colocation operators, infrastructure investors, sometimes hyperscalers or enterprises wanting controlled capacity. Multiples reach the upper end with high utilization, secured power and expansion rights, a strong location, contracted creditworthy tenants on long leases, and a clean facility.

Scaled, high-utilization facilities with secured power

Typical multiples: the premium tier, recent platform acquisitions have ranged roughly 20x to 30x EV/EBITDA, with premium strategic assets around 30x run-rate EBITDA, well above the ~16x typical of the broader private-infrastructure universe. Built MW largely leased to creditworthy hyperscale and large-enterprise tenants on long-dated contracts; secured, competitively-priced utility power with expansion rights; a strong location (major metro proximity, deep fiber, network density); efficient design (good PUE); meaningful interconnection/cross-connect revenue; and a development pipeline of entitled, powered land for future capacity. Data center REITs, infrastructure private equity, dedicated digital-infrastructure funds, hyperscalers, and strategic acquirers compete intensely here, the contracted MW plus the secured power runway is exactly what they’re buying, and the supply shortage keeps pushing multiples up.

The value-driver math

Factor	Why it moves the multiple
Contracted recurring revenue + tenant quality + lease term (MW/kW under signed leases, weighted-average remaining lease term, tenant credit)	The core: long-dated leases with hyperscale and large-enterprise tenants are the highest-quality, most underwriteable revenue; short leases or weak tenants discount heavily
Power availability and cost (secured utility capacity, expansion rights, competitive power price, on-site generation)	The scarcest and most valuable asset in the business right now, power, not land or capital, is the binding constraint on data center growth; secured capacity and expansion rights command enormous premiums
Location and connectivity (major-metro proximity, fiber routes, carrier and network density, latency)	Drives demand and pricing power; carrier-dense, well-connected facilities in primary markets are the most valuable; remote, poorly-connected sites are worth less per MW
Capacity and utilization (built MW, leased MW, headroom, lease-up trajectory)	High utilization signals demand and de-risks the revenue; available headroom is upside the buyer pays for; a clear lease-up trajectory matters
Efficiency and design quality (PUE, redundancy/tier level, cooling design, AI-readiness for high-density loads)	Lower PUE means lower operating cost and higher margin; modern, redundant, high-density-capable design is more valuable, especially for AI workloads
Interconnection / cross-connect revenue and ecosystem (cloud on-ramps, peering, carrier presence)	High-margin, sticky recurring revenue; a rich interconnection ecosystem is a moat that carries a premium
Build / expansion pipeline (entitled, powered land; permits; utility commitments for future capacity)	Given the acute supply shortage, a pipeline of shovel-ready, powered capacity is hugely valuable, sometimes worth more than the operating facility

The pattern: data center value is about contracted MW to good tenants on long leases, secured and expandable power, a great location, high utilization with headroom, efficient design, interconnection revenue, and a build pipeline. Secure more power and expansion rights, lease up to creditworthy tenants on long terms, document the pipeline, and the multiple, already exceptional, moves with you. And the single thing most likely to drive an outsized outcome right now is a strong, secured power position with room to grow.

The buyers acquiring data center and colocation businesses in 2026

Data center REITs and operators, the large public and private platforms acquiring facilities, land, and power positions to add capacity and presence in key markets; sustained, well-capitalized acquirers.
Infrastructure private equity and dedicated digital-infrastructure funds, enormous capital has been raised for digital infrastructure; these funds acquire platforms and assets at the premium multiples and back development.
Hyperscalers and their build partners, cloud and AI companies (and the developers who build for them) acquiring facilities, land, and power to secure capacity for their own workloads.
Strategic acquirers and enterprises, telecoms, IT services companies, and large enterprises acquiring colocation capacity or capability.
Real estate and energy investors, drawn by the convergence of data center demand with real estate and power.

Note: several buyers in CT’s network specifically target data center, colocation, and digital-infrastructure businesses, this is a vertical where we have active mandates.

We have buyers for data center and colocation businesses. CT works with a network of 100+ active capital partners, private equity firms, family offices, strategic acquirers, and search funders, and several of them have stated mandates to acquire data center and colocation businesses. The multiples, buyer types, and dynamics on this page reflect those mandates plus current public M&A data, they are informed starting points, not guarantees; your outcome depends on the specifics. With the buyer-paid model, sellers pay no advisory fee, the buyer pays at closing. Get a sector-adjusted estimate with our free 90-second valuation tool.

How to prepare a data center business for sale

Secure and document your power position. Utility capacity contracts, expansion rights, interconnection agreements, on-site generation, the power price, and any committed future capacity, this is the most valuable thing you have; make it bulletproof and clearly presented.
Lease up to creditworthy tenants on long terms. Improve utilization, sign hyperscale/enterprise tenants on multi-year leases, lengthen WALT; document leased MW, tenant credit, lease terms, and the lease-up trajectory.
Document the facility and its capacity, built and available MW, design tier/redundancy, PUE and efficiency data, cooling design and high-density/AI-readiness, age and condition, capex history and plan.
Quantify the build/expansion pipeline, entitled and powered land, permits, utility commitments, development plans, this can be a huge part of the value given the supply shortage.
Document connectivity and interconnection, fiber routes, carrier presence, network density, cloud on-ramps, cross-connect count and revenue.
Get the real estate and entitlements clean, ownership/ground-lease structure, zoning, environmental, water rights (cooling), and any community/regulatory considerations.
Clean financials, accrual accounting, normalized owner comp, documented add-backs, 2-3 year review, contracted vs uncontracted revenue clearly split, and a clear picture of stabilized/run-rate EBITDA.

What kills data center deals in diligence

Insecure or insufficient power, no firm utility capacity, no expansion rights, an uncompetitive power price, or grid-interconnection delays
Low utilization with no clear lease-up trajectory, or short-dated leases / weak-credit tenants
A poor location, remote, thin fiber, low network density, far from demand
Inefficient or dated design, high PUE, low redundancy, not capable of high-density/AI loads
Real estate, entitlement, environmental, or water-rights problems
Tenant concentration with re-bid or non-renewal risk on a major lease
Capex surprises, deferred maintenance, end-of-life equipment, or a development pipeline that turns out not to be truly powered/entitled
Sloppy financials that don’t separate contracted from uncontracted revenue or present run-rate EBITDA clearly

The process: first conversation to close

Off-market to a data center REIT/operator, infrastructure PE or digital-infrastructure fund, hyperscaler/build partner, or strategic acquirer: roughly 120-270 days (longer than most business-services deals because of the power, real estate, entitlement, environmental, and infrastructure diligence), days 1-21 conversation/valuation/fit, days 21-45 buyer introductions, days 45-90 LOI, days 90-240 diligence (financials and contracted revenue, power and utility agreements, tenant credit and leases, real estate and entitlements, facility/engineering and capex, connectivity, development pipeline) and definitive agreement, days 210-270 close and transition. Traditional broker listings rarely fit this asset class; specialized digital-infrastructure advisory is the norm. See our broker alternative guide.

More: sell your business, the buyer-paid broker alternative, business brokers by state, how to value a small business, how private equity creates value, about CT Acquisitions, or use our free valuation tool or book a confidential call.

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Frequently asked questions

How much is my data center or colocation business worth?

Data center and colocation businesses are valued on a multiple of recurring (mostly contracted) EBITDA, and the multiples are exceptional, recent data center platform acquisitions have ranged roughly 20x to 30x EV/EBITDA, with premium strategic assets around 30x run-rate EBITDA, versus around 16x for the broader private-infrastructure universe. Smaller, single-site, lower-utilization colocation operators trade below that band (often low-to-mid teens on EBITDA, sometimes valued partly on the real estate and secured power capacity), while scaled, high-utilization facilities with secured power, strong locations, and contracted hyperscale/enterprise tenants command the top. Data center valuation is highly asset-specific, your power position, tenant quality and lease terms, location/connectivity, utilization and headroom, efficiency, interconnection revenue, and build pipeline all drive the number. Use our free valuation tool for a starting range, then a real conversation about your specifics is the actual exercise.

What makes a data center business more valuable?

The contracted recurring revenue base and its tenant quality and lease term (MW or kW under signed multi-year leases, weighted-average remaining lease term, tenant credit, with hyperscale and large-enterprise tenants on long leases the most valuable); power availability and cost (secured utility capacity, expansion rights, a competitive power price, on-site generation, this is the scarcest and most valuable asset in the business right now because power, not land or capital, is the binding constraint on growth); location and connectivity (major-metro proximity, deep fiber, carrier and network density); capacity and utilization (built MW, leased MW, headroom, lease-up trajectory); efficiency and design quality (low PUE, redundancy, high-density/AI-readiness); interconnection/cross-connect revenue and ecosystem; and the build/expansion pipeline (entitled, powered land, which given the supply shortage can be hugely valuable). Securing power and expansion rights and leasing up to creditworthy tenants on long terms are the biggest levers.

Who is buying data center businesses in 2026?

Data center REITs and operators (the large public and private platforms acquiring facilities, land, and power to add capacity); infrastructure private equity and dedicated digital-infrastructure funds (enormous capital has been raised for digital infrastructure, and these funds acquire platforms and assets at the premium multiples and back development); hyperscalers and their build partners (cloud and AI companies and the developers who build for them, acquiring facilities, land, and power to secure capacity for their own workloads); strategic acquirers and enterprises (telecoms, IT services companies, large enterprises); and real estate and energy investors drawn by the convergence of data center demand with real estate and power. The segment has sustained intense competition from both PE and strategics. CT also has buyers in its network that specifically target data center, colocation, and digital-infrastructure businesses.

Why is power the most important factor in valuing a data center?

Because power, not land, not buildings, not capital, is the binding constraint on data center growth right now. Demand (driven by cloud and especially AI) vastly exceeds the supply of available, powered capacity, utility interconnection queues are years long in many markets, and you cannot build or expand a data center without firm power. So a facility with secured utility capacity, contractual expansion rights, a competitive power price, and ideally entitled powered land for future capacity holds something the market is desperate for, and buyers pay enormous premiums for it. Conversely, a facility with no firm power, no expansion rights, an uncompetitive power price, or grid-interconnection delays is a much harder sell regardless of how nice the building is. If you’re preparing to sell, locking down and clearly documenting your power position, current and future, is the single highest-return thing you can do.

How long does it take to sell a data center business?

Longer than most business-services deals, typically 120 to 270 days, because data center diligence is unusually involved: financials and contracted revenue, power and utility agreements (often the longest pole), tenant credit and lease review, real estate and entitlements, facility/engineering and capex assessment, connectivity, and the development pipeline. Roughly: days 1-21 conversation/valuation/fit, days 21-45 buyer introductions, days 45-90 LOI, days 90-240 diligence and definitive agreement, days 210-270 close and transition. Traditional business-broker listings rarely fit this asset class; specialized digital-infrastructure advisory and a curated buyer process is the norm, and the buyer being pre-qualified and actively looking for capacity in your market is what keeps the timeline manageable.

How do I increase the value of my data center business?

Secure and document your power position (utility capacity contracts, expansion rights, interconnection agreements, on-site generation, power price, committed future capacity, the most valuable thing you have); lease up to creditworthy tenants on long terms (improve utilization, sign hyperscale/enterprise tenants on multi-year leases, lengthen WALT); document the facility and capacity (built and available MW, design tier, PUE, cooling, high-density/AI-readiness, capex plan); quantify the build/expansion pipeline (entitled, powered land, permits, utility commitments); document connectivity and interconnection (fiber, carriers, network density, cross-connect revenue); get the real estate and entitlements clean; and present clean accrual financials that separate contracted from uncontracted revenue and show run-rate EBITDA clearly. Securing power and expansion rights, leasing up on long terms, and documenting the pipeline are the biggest levers.

Should I use a business broker to sell my data center?

Generally no, not a traditional Main Street business broker. Data center and colocation businesses are specialized infrastructure assets with buyers (REITs, infrastructure funds, digital-infrastructure funds, hyperscalers, strategics) that a general broker won’t have relationships with, and the diligence (power, real estate, entitlements, tenant leases, engineering) requires specialized handling. A buyer-paid sell-side advisor or specialized digital-infrastructure advisory with relationships across the REITs, infrastructure PE, and hyperscale build partners, running a curated competitive process, is the right approach, better outcomes, far higher valuations, better-matched buyers, and with the buyer-paid model no seller fee (the buyer pays at closing). For very small colocation operations, a tech-focused M&A advisor can work, but even there the buyer pool is specialized enough that a generalist broker is rarely the right choice.

Does the build or expansion pipeline matter when selling a data center?

Hugely, sometimes the pipeline is worth more than the operating facility. Given the acute shortage of available, powered data center capacity, a seller who controls entitled, powered land, with permits and utility commitments for future capacity, is offering the buyer a runway to build the capacity the market is desperate for, and buyers will pay substantial value for that optionality on top of the operating asset. Conversely, a seller with no pipeline is offering only what’s already built. If you have land, entitlements, or power commitments for future capacity, quantify and document them thoroughly, the entitlement status, the power availability and timeline, the development plans and costs, because in this market a credible powered pipeline is one of the most valuable things you can bring to a sale.