I've developed this financial model to serve as an exceptionally flexible tool for evaluating the feasibility of a new data center project. Excel is a great platform to perform this kind of analysis and in it the user can modify all sorts of assumptions to see what different scenarios look like, including with the use of leverage.
$75.00 USD
After purchase, the template will be immediately available to download. It is also included in the following bundles:
Template Features:
- Analyze a period of up to 120 months (10 years).
- Includes an integrated three statement model.
- DCF Analysis, IRR, Equity Multiple and option for investor / operator views.
- Configure up to 4 revenue streams based on up to 10 rack types (cohorts).
- Define rack utilization over time as well as pricing changes.
- Bottom-up assumptions for fixed and variable direct costs.
- CAPEX schedule for initial development and IT equipment costs.
- Model includes depreciation and tax effects therein.
- Plenty of room to model out expansions over time.
- Fully unlocked spreadsheet with all formulas / framework that is editable as needed.
- Clear cell formatting to show what is an input vs. a calculated field.
Revenue Configuration
For revenue, I wanted to consider a few different approaches. The model gives the user the ability to define revenue based on a flat fee per month per rack by up to 10 rack types, each with an arbitrary rack count. Alternatively, the user can define revenue based on multiple components, such as rack rent, power consumption charges, cross-connects, and up to three different managed services. All these assumptions have a configuration for utilization over time, pricing, and relevant direct costs.
Direct Costs
For variable expenses, I made inputs within the various revenue types such that the user can break costs down based on things like kWh per month per rack as well as other various costs on a per rack basis (maintenance, licensing fees, software fees, extra staffing, and so forth).
Additionally, I have higher-level inputs that the user could configure, such as multiple slots for total cost per utilized rack per month and total cost per total existing racks per month.
CAPEX
I wanted to make the capital expenditure section simple and flexible. On it, the user simply defines the total cost for each item (up to 15 items) plus a contingency cost as a percentage of the total CAPEX. Then, there is a monthly schedule where the user defines the percentage of total costs paid in each month. This makes cash flow planning more realistic as well as allowing for future expansions.
Leverage
For leverage, I have provided up to three debt options. Loan 1 is an optional construction loan with an interest-only period followed by a term loan, Loan 2 and Loan 3 are simple working capital loans (regular term loans). They are dynamic, with the ability to start at any point during the life of the model.
As you go through and change various assumptions, the financial statements (income statement, balance sheet, and statement of cash flows) will automatically change as well. There are high-level executive summary views of the project as well as detailed monthly pro forma and annual pro forma views.
For visualizations, I have nicely formatted charts that include KPIs like average monthly revenue per rack (total racks vs. live racks), cash flow over time, revenue, EBITDA, gross profit, margins, utilization (% and rack count), and more.
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