Perhaps the most important thing you lose when you build most data centers is control of the land they sit on. The inability to build out your data center incrementally forces you to build, and pay for, a shell large enough to house your projected capacity whether you reach it or not. This is obviously an inefficient use of capital. Perhaps more importantly, it also eliminates the option value of land your new facility resides on.
Option value is quite simply the benefit of being able to utilize your site’s land in the way that you choose. Because Compass enables you to expand your data center incrementally based on your own requirements, or, depending on shifts in demand or strategy, you are free to use the remaining land as you see fit. You can even choose to add capacity without using Compass if you so desire. The key point is that with a Compass data center, you retain control over the use of the land you already owned or purchased. No other data center provider offers you this degree of flexibility and financial control.
Delivered in 6 Months. Guaranteed.
Building your own data center typically takes two years or more. This can waste your organization’s time and money. Compass delivers your data center in six months from initial ground breaking on a pad ready site. We’re so confident in our ability to achieve this goal that we will pay you $100,000 if we don’t.
How to Buy. Multiple Options.
Putting control into the hands of the customer is a fundamental tenet of the Compass business model. By offering you three options, you are able to select the procurement structure for your data center that best meets your financial and business requirements.
Option One – Leasing the Land and the Facility
Using a triple net (NNN) structure, you can lease your dedicated data center. Compass leases are structured based on the competitive rates of your desired market to provide you with the OpEx-based data center solution you need. Imagine getting your dedicated facility at colo* pricing.
- Low upfront costs
- Operating expense solution
- Known budgetary expense simplifies future financial planning
Option Two – Purchase the Facility
Typically only available in Do it Yourself or Build to Suit scenarios, Compass also enables you to purchase your data center. Compass further enhances this option by offering you three purchase alternatives to provide you with the flexibility to structure the package that best suits your financial requirements:
Your Land: Compass will develop and build your data center on land that you already own to provide you with the option value of growing on your existing campus or on land you own.
Site Identification and Development: In instances where you need help finding a location, Compass will identify a parcel that meets your requirements and develop it for you.
Land Parcel/Condo Interest: If you’d like to purchase the facility and the land it resides on, Compass enables you to procure either a condo interest or the entire land parcel.
- Multiple options for structural flexibility
- Leverage your cost of capital and receive depreciation benefits
- Retain the option value of the site’s land
- No lease payments
Option Three – Hybrid
If you’re seeking the benefits of depreciation and the benefits of using your own capital without having to deal with real estate issues, Compass can also provide you with our hybrid lease/purchase option. This capability enables you take advantage of a NNN lease for the land and hardened shell building while purchasing the data center elements.
- Leverage your cost of capital and depreciation schedule for the data center
- Compass deals with the real estate development “headaches”