Data center development is no longer constrained by real estate or demand—it is constrained by power.
In this first session of the Marshall & Stevens Data Center Forum, industry leaders across capital markets, legal, energy, and infrastructure discuss how power availability, financing structures, and investment dynamics are reshaping how data centers are built and valued.
The conversation highlights a fundamental shift: access to reliable, scalable energy is now the primary driver of site selection, capital formation, and long-term project viability.
Watch Below
Speakers
- Ralph Consola – Executive Managing Director, Marshall & Stevens (Moderator)
- Anthony Orso – President, Capital Market Strategies, Newmark
- Christy Rivera – Partner, Norton Rose
- Winston Connolly – Director, Connolly Inc.
- Sam Sixt – Principal, I Squared Capital
- Charles Miller – President & CEO, NgenX Energy
Overview of the Discussion
This session focuses on how power constraints are redefining the data center landscape—from development strategy to capital structure.
The panel explains that while demand for AI and cloud infrastructure continues to accelerate, the ability to deliver power at scale has not kept pace. As a result, projects are becoming larger, more complex, and more capital-intensive, with energy infrastructure often representing a significant portion of total investment.
The discussion also explores how financing models are evolving alongside this shift. Traditional construction lending, project finance structures, and asset-backed securities are all being used, often in combination, to fund increasingly large and complex developments. At the same time, new sources of capital—including offshore investors and non-traditional funds—are entering the space to meet growing demand.
Across all topics, a consistent theme emerges: data center development is converging with energy infrastructure, requiring a different approach to risk, valuation, and execution.
What You’ll Learn
- Why power availability—not land—is now the primary constraint on data center development
- How energy infrastructure is reshaping deal size, capital requirements, and timelines
- What “power-first” development means in practice
- How financing structures are evolving to support multi-billion-dollar projects
- Where investors are focusing and how they are screening opportunities
Key Takeaways
Power is the gating factor for development
Panelists consistently emphasized that without reliable, scalable energy, data center growth cannot continue. Grid limitations, interconnection delays, and equipment constraints are all contributing to supply challenges.
Project scale has increased dramatically
Data center developments have moved from hundreds of megawatts to multi-gigawatt projects, with total capital requirements reaching tens of billions of dollars.
“Power-first” is now standard
Projects are increasingly evaluated based on power access before any consideration of land, location, or tenant demand.
Financing structures are becoming more complex
Developments often require separate financing for energy infrastructure, data center assets, and tenant arrangements, reflecting the growing complexity of these projects.
Time to market has measurable economic value
The ability to deliver power—and therefore capacity—faster can significantly increase revenue potential, making speed a critical factor in investment decisions.
Why This Matters
The discussion highlights a structural shift in how data centers are developed and valued.
Historically, data centers were treated primarily as real estate assets supported by infrastructure. Today, they are increasingly viewed as integrated energy and infrastructure platforms, where power availability, reliability, and cost drive both feasibility and value.
This shift has direct implications for investors, developers, and lenders:
- Site selection is constrained by power, not just geography
- Capital requirements now include large-scale energy investment
- Valuation must account for infrastructure risk and long-term energy strategy
- Financing structures must align multiple asset classes and stakeholders
For firms evaluating or participating in this space, understanding how power, capital, and infrastructure intersect is critical to making informed decisions.
Related Services
- Data Center Valuation & Advisory Services
Supports investment, financing, and development decisions by analyzing power availability, infrastructure constraints, and market dynamics.
- Real Estate Valuation Consulting
Provides valuation of complex assets including powered land, energy infrastructure, and specialized real estate tied to data center development.
- Fairness Opinion Advisory
Helps boards evaluate large-scale transactions, particularly where complex capital structures and infrastructure investments introduce additional risk.
