\u201cYou\u2019re starting to see these things being cited because they know that the power plant is actually cheaper to build than the servers that I’m putting into this facility,\u201d Medina said.<\/span><\/p>\nEvolving Financial Models to Manage Risk<\/h2>\n
With AI data centers requiring unprecedented capital investments, financial structures are evolving to distribute risk, with pre-leasing becoming standard practice.<\/span><\/p>\n\u201cI think that\u2019s the difference between now versus the dot-com boom,\u201d Medina explained. \u201cNow people are not comfortable putting in billions, not knowing if they are going to have a tenant.\u201d<\/span><\/p>\nLarger developers are increasingly using partnerships to share exposure.<\/span><\/p>\n\u201cI think now what we\u2019ve seen for hyperscale, pretty much, like 90 plus percent, is pre-leased, and the same thing for the AI campuses,\u201d Medina said. \u201cWe would expect most of them to have pre-leasing, but not all of them. It\u2019s also why you’re seeing them being built in phases.\u201d<\/span><\/p>\n<\/div>\n