How much does it cost to build a 1 MW data center in 2026?

Global average shell-and-core construction cost reached approximately $11.3M per MW in April 2026 (up from $7.7M per MW in 2020 — roughly 7% CAGR). Powered shell can run $8–$12M/MW; turnkey colocation with full IT fit-out runs $15–$30M/MW depending on tier rating, redundancy, and cooling design (air vs. liquid).

What rent per MW per month do hyperscalers pay in 2026?

Hyperscaler IG-rated tenants (Microsoft, AWS, Google, Meta, Oracle) sign 10–15 year take-or-pay leases at approximately $20.8K–$22K per MW per month based on April 2026 deal comps including Applied Digital's $7.5B / 300 MW / 15-year hyperscaler lease announced April 23, 2026. Enterprise / colocation: $15–$18K per MW per month. AI infrastructure (GPU-anchored): $22–$28K per MW per month.

What's the typical capital stack for a data center deal?

Typical hyperscaler-leased data center capital stack: 60–65% senior construction-to-mini-perm at 7.25%–8.25%, 15% mezzanine at 10.5%–13%, 20–25% sponsor or JV preferred equity. Stabilized take-out is CMBS SASB at 7.50%–9.00% non-recourse 10-year fixed (sized to 1.25x DSCR). Recent 2026 issuance: Switch $768M ABS, Yondr $532M Green ABS, Vantage $2.4B, Aligned $2.58B.

What DSCR do data center lenders require?

Senior debt sizing typically requires 1.30x stabilized DSCR for hyperscaler IG-rated tenants, 1.35x for enterprise/colocation, and 1.40x for AI infrastructure deals. CMBS SASB take-out at stabilization sizes to 1.25x. Construction lenders may apply tighter DSCR floors (1.40x–1.50x) during the construction-to-stabilization transition period.

Can I get CMBS financing for a data center?

Yes — data center CMBS SASB (Single-Asset Single-Borrower) is a meaningful and growing CMBS sub-market. April 2026 issuance includes Switch ($768M), Yondr ($532M Green ABS), Vantage ($2.4B), and Aligned ($2.58B). CMBS SASB requires 1.25x DSCR, hyperscaler or institutional-grade colo tenant, 10+ year remaining lease term, and stabilized operations for 12+ months. Pricing 7.50%–9.00% non-recourse 10-year fixed.

What's the difference between mini-perm and CMBS for data centers?

Mini-perm is the construction-to-permanent intermediate stage: a 5–7 year debt facility from banks, life insurance companies, or debt funds at 7.25%–8.25% with 25-year amortization. CMBS SASB is the longer-term permanent financing at stabilization: 10-year non-recourse fixed at 7.50%–9.00%. Mini-perm bridges from C-of-O to stabilized DSCR; CMBS SASB takes out the mini-perm once the data center is fully leased and operating.

Data Center Deal Sizer · Capital Markets Tool

Data Center Deal Sizer: Live Capital Stack & Stabilized Debt Sizing

Enter your MW capacity, tenant profile, CapEx-per-MW, and lease term. Outputs in real time: stabilized NOI, cap rate, max senior debt at 1.30x DSCR (mini-perm), max CMBS SASB at stabilization, mezz tranche, and required sponsor / JV equity.

Default assumptions calibrated to April 2026 hyperscaler lease comps ($20.8K–$22K per MW per month) and $11.3M/MW shell-and-core construction benchmark. Adjust for your specific deal.

Last updated: April 24, 2026·By Ed Freeman, Capital Advisor — PeerSense

Deal Inputs

Tenant Profile

Microsoft, AWS, Google, Meta, Oracle (10–15 yr take-or-pay leases)

Capacity: 50 MW

5 MW300 MW

Lease Term: 15 years

CapEx per MW: $11.5M / MW

$8M (powered shell)$30M (full turnkey)

April 2026 global average shell-and-core: ~$11.3M/MW (up from $7.7M/MW in 2020).

Land Cost: $15M

Stabilized Occupancy: 95%

Operating Expense (% of revenue): 8.0%

NNN data center leases: 5–8% opex. Powered shell or partial gross: 8–14%.

Project Summary

Total CapEx: $575.0M
Land: $15.0M
Total Project Cost: $590.0M
Annual NOI: $11.5M
Stabilized Cap Rate: 1.96%

Capital Stack

Senior Construction → Mini-Perm$102.3M

17.3% of stack · Rate: 7.25%

Sized to lower of 65% LTC or 1.3x stabilized DSCR. 25-yr amort.

Mezzanine / Sub Debt$88.5M

15.0% of stack · Rate: 10.50%

Subordinated debt fills capital stack gap above senior LTV. Cash-pay + PIK options.

Sponsor / JV Equity$399.2M

67.7% of stack · Rate: —

JV preferred equity 11–14% pref likely needed

Alternative permanent take-out (CMBS SASB at stabilization): Maximum loan ≈ $110.0M (18.64% LTV) at 7.50%, 1.25x DSCR, 30-yr amort.

Indicative sizing only. Actual rate and LTV depend on tenant credit, construction risk, sponsor balance sheet, power-purchase agreement durability, and market spreads at rate lock. Rate ranges shown reflect approximate April 2026 private credit and CMBS conduit pricing. Contact PeerSense for a deal-specific term sheet.

How the Deal Sizer Works

1. Revenue from Tenant + MW

Annual revenue = monthly rent per MW × 12 × MW capacity × stabilized occupancy. Hyperscaler IG-rated leases (Microsoft, AWS, Google, Meta, Oracle) trade at ~$20.8–22K per MW per month on 10–15 year take-or-pay terms. Enterprise/colocation: $15–18K per MW per month. AI infrastructure (GPU-anchored): $22–28K per MW per month with wider spreads to reflect newer asset class.

2. NOI from Operating Expenses

NOI = Gross Revenue − Operating Expenses. NNN data center leases pass through power, cooling, taxes, insurance, and maintenance to tenant; landlord opex stays low (5–8%). Powered-shell or partial-gross structures retain some opex with the landlord (8–14%). Underwrite to the lease structure your tenant signs.

3. Senior Debt Sized to 1.30x DSCR

Senior debt is the lower of (a) 55–65% LTC depending on tenant credit, or (b) the loan amount where stabilized NOI ÷ debt service equals 1.30x (1.35x for enterprise, 1.40x for AI infra). Senior is structured as a construction-to-mini-perm at 7.25%–8.25%, 25-year amortization.

4. Mezzanine Fills the Stack Gap

Subordinated debt at 10.5%–13% closes the gap between senior LTV and the 70–80% combined LTV you need to make sponsor equity efficient. Cash-pay or PIK during construction; cash-pay at stabilization. JV preferred equity is the alternative if the deal needs deeper subordination.

5. CMBS SASB at Stabilization

Once the data center is leased and operating at stabilized DSCR, the bridge/mini-perm exits into CMBS SASB (Single-Asset Single-Borrower) at 7.50%–9.00% non-recourse 10-year fixed. Recent 2026 issuance: Switch ($768M, April), Yondr ($532M Green ABS, February), Vantage, Aligned. CMBS sized to 1.25x DSCR, 30-year amort.

6. Sponsor / JV Equity

Whatever's left after senior + mezz. If equity exceeds 30% of total project cost, JV preferred equity (11–14% pref) is typically introduced to optimize sponsor returns. Co-GP and minority partner structures are common for AI infrastructure deals.

Why a Data Center Deal Sizer Matters

Data center capital stacks are uniquely complex — construction loans, mini-perms, mezzanine, JV preferred equity, CMBS SASB, ABS — and the sizing depends sensitively on tenant credit, lease term, CapEx-per-MW, and stabilized DSCR. Most general commercial real estate calculators ignore data centers entirely; the few that mention them treat them as plain industrial.

This tool uses the same sizing assumptions PeerSense's capital advisory team applies when structuring real data center transactions: tenant-credit-tier-driven senior LTV/rate, 1.25x–1.40x DSCR floors calibrated to tenant profile, CMBS SASB take-out at stabilization, and JV preferred equity sizing when sponsor equity exceeds 30%.

Adjust inputs to model your specific deal — then talk to our capital advisory team for a deal-specific term sheet, lender shortlist, and bridge-to-perm execution plan.

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Sources & References

Data Center Capital Markets Sources (April 2026)

Foley & Lardner — Financing the Data Center Boom (April 2026) — Capital structures, leverage ratios, and project finance trends in U.S. data center development.
Foley 2026 Data Center Development Report — Strategic challenges, power constraints, and market tightening dynamics shaping 2026 data center capital needs.
S&P Global Ratings — Data Center Financing PPIF 2026 Takeaways — Project finance benchmarks, ABS issuance trends, and credit rating perspectives on data center debt.
JLL — 2026 Data Center Outlook — Market sizing, hyperscaler leasing trends, $11.3M/MW shell-and-core construction cost benchmark.
Applied Digital — 300 MW Hyperscaler Lease (April 23, 2026) — $7.5B / 300 MW / 15-year hyperscaler lease — primary source for $20.8K/MW/month rent benchmark.
DataBank $2B Construction Loan — Red Oak Campus — Recent large-scale data center construction loan structuring example for April 2026 market.
BloombergNEF — AI Data Center Build Five Things to Know — AI infrastructure capital expenditure projections through 2030; ~100 GW new capacity build-out.

External links are provided for informational and verification purposes. PeerSense is not affiliated with and does not endorse any third-party site. Information was current at the time of publication.

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Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated April 2026.

Disclaimer: This deal sizer produces indicative capital stack and debt sizing only. Actual rate, LTV, and tranche sizing depend on tenant credit rating, construction risk, sponsor balance sheet, power-purchase agreement durability, regulatory approvals, and market spreads at the time of rate lock. Rate ranges and assumptions reflect approximate April 2026 private credit, CMBS SASB, and ABS conditions. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult qualified financial and legal professionals before making any financing decisions.