What drives value and risk
Digital infrastructure assets earn revenue through long contracts with customers, so the terms of those contracts are central, especially renewal, termination, service levels, and assignment. For data centers, access to power is often the limiting factor, and utility agreements, interconnection arrangements, and permits for on-site generation deserve close review. Land rights, including ground leases, easements, and rights of way for fiber, can be fragmented across many parcels and owners. Environmental and zoning matters also affect plans to expand. A small number of large tenants often account for much of a data center's revenue, and their contracts may carry consent or termination rights triggered by a change of control.
Regulatory approvals
Some deals need antitrust clearance, and transactions involving telecommunications carriers may require approval from the Federal Communications Commission and state utility commissions for license transfers. Foreign buyers or investors may face review by the Committee on Foreign Investment in the United States, which pays particular attention to critical infrastructure and sensitive data. When FCC licenses and foreign ownership are both present, a separate executive branch national security review may run alongside. These processes affect timing, so they should be planned from the start. State and local permitting for new capacity can be slow, so buyers often treat pending applications as part of what they are paying for.
Structuring and diligence
Buyers usually focus diligence on customer concentration, contract assignability, power commitments, and title to physical assets. Sellers can prepare by organizing contracts and permits and identifying the consents a sale will need. Existing financing, such as securitizations backed by the assets, may restrict how they can be transferred. Deals may be structured as purchases of specific sites or as acquisitions of the operating company, and that choice affects which consents and approvals are triggered. Purchase agreements also need to deal with projects still under construction, including who bears cost overruns and delays. Starting from the asset list, the key contracts, and the regulatory profile, we outline the approvals and diligence priorities for the deal.
