How I Underwrote a $65.5M Data Centre in the UK

I underwrote a £65.5M data centre in the UK.

The land is valued at £150M with govt backing...

The sponsor wants to build a modular AI data centre on a brownfield site in the north of England.

Investors get paid interest plus a cut of profits, and get their principal back at the end of 5 years.

- Brownfield site, already owned, unencumbered
- Planning decision expected September 2026
- Demolition already underway
- 15% profit share over 5 years
- 28MW upgradable to 80MW
- LOIs in progress

To fund deals like this, I ask 4 questions:

1) What stage of risk are we in?

- Pre-planning consent, decision due Q3 2026
- Pre-revenue, first ops targeted November 2026
- No signed offtake yet, LOIs expected

2) What makes the location work?

- Brownfield site inside a major UK regen corridor
- Existing power infrastructure already on site
- Council has waived full environmental review

3) How is the downside protected?

- Land held unencumbered (£150M value)
- RICS valuation supports strong residual value
- Cash reserves are tight, so execution matters here

4) Can we control the exit?

- 5-year term, principal plus profit share at maturity
- Sponsor plans to hold and operate long-term

This is a pre-planning, pre-contract deal.

There's real interest in it, and more equity coming in would likely unlock a first lien on the land, which would make it a much easier deal for a lender.

My verdict:

- Medium fit for private credit
- Strong fit for family offices
- Weak fit for institutions

If you allocate to real assets, let's connect 👋