Hot Listing

20+ Year Profitable Data Center For Sale, Owner Retiring

Asking Price$5,212,149

Cash Flow
$613,194

EBITDA$613,194

Gross Revenue$1,200,000

InventoryNot Disclosed

FF&ENot Disclosed

Data Center For SaleSave
Hot Listing

20+ Year Profitable Data Center For Sale, Owner Retiring


Asking Price$5,212,149

Cash Flow
$613,194

EBITDA$613,194

Gross Revenue$1,200,000

InventoryNot Disclosed

FF&ENot Disclosed

Business Description
Established, profitable colocation data center business with 20+ years of recurring revenue and strong infrastructure. Owners retiring.

Apply direct on listing if interested>>>>

ESTABLISHED BUSINESS
- Recurring Model: Core business stable, monthly fees from clients SMBs & enterprises
- Operational History: 20+ years of continuous operation, consistent profitability
- Industry Position: Operates in a fragmented, high-barrier-to-entry segment with increasing consolidation
- Infrastructure Demand: AI/ML workloads driving increased power and space needs, 3x in next 5 years

CORE BUSINESS
- Stable Contracts: Stable recurring contracts across SMB and mid-market clients
- Service Mix: Cabinet, rack, and cage hosting—recurring MRR, bundled maintenance, and upsell potential on power and space
- Facility Strength: Strategically located facility built for reliability, uptime, and physical security
- Location Type: Outside major cost centers; optimized for power cost and physical security

INFRASTRUCTURE
- Facility: Robust facilities with raised floors, metered power (up to 185W/SF), multiple fiber carriers, and carrier-neutral architecture
- Facility Layouts: Purpose-built with multiple rack, cage, and per-SF packages available
- High Security: 24/7 access, guided FOB entry, CCTV surveillance, and fire-resistant zones. Redundant diesel generator backup systems in place
- Utility Ready: Supports increasing power loads; additional generators can be installed

FINANCIALS
- EBITDA: $613,194
- Asking Price: $5,212,149
- Third Party Multiples (Data Centers): 7.9x - 9.1x

Note: Data Centers typically trade above market multiples given the demand for AI.

INDUSTRY COMPARABLES "COMPS":
- SMB Data Centers: Typically trade 7.9x–9.1x EBITDA in SMB
- Larger Data Centers: Typically trade for 20x - 25x EBITDA
- EBITDA vs SDE: Data Centers typically priced in EBITDA not SDE
- Sector Premium: Unlike general SMBs (3–5x SDE), data centers command premiums, and trade at 20x - 25x EBITDA up market.

OWNER RETIRING AFTER 20+ YEARS
- Owner Transition: After 20 years, owners looking to retire. Potential to negotiate, most likely sell 100% of the business
- Remaining Staff? Potential full-time with mechanical and technical knowledge
- Transition Support: Sellers open to transition support standard market terms

AI MARKET DEMAND
- Industry Tailwinds: Global data center spend forecasted to hit $49B by 2030, growing 10% a year
- Generative AI Infrastructure: Spend expected to grow 3x+ by 2030 $200BN ---> $600BN
- United States: Accounts for roughly 40% of the global market

AI GROWTH
- New AI Customers: 2x expected to each add $10K - $15K per month / EBITDA, $250K per year
- New AI Pricing: Early discount pricing expected to roll off, resulting in +$50,000 in EBITDA
- Total AI Growth: Up $300K this year in incremental EBITDA from AI client growth this year

STRATEGIC BUYER FOCUSED
- Experience Buyer Focus: Generalist buyers will have difficulty winning the deal—must have experience in data centers, infrastructure, or IT services.

WHAT WOULD IT COST TO BUILD THE DATA CENTER IN TODAYS MARKET?
- Estimated Replacement Costs: Estimated new build cost $5.0M–$9.75M, increase in buildout costs power, cooling, labor, and telecom

WHY BUY THIS DATA CENTER VS. BUILD NEW ONE ---> COSTS & PROCESS?
- Avoid construction risk: Avoid 18-month lead time and utility delays.
- Already monetizing AI: Immediate AI clients onboarded & paying contracts
- You can’t build this fast: Lead times for power delivery, network trenching, and permitting can exceed 12–24 months
- Cost overruns are common: Equipment delays, supply chain variability, and local regulatory issues often add 20%+ to pro forma build budget

Apply direct on listing if interested>>>>
About the Business
Years in Operation
25
Facilities & Assets
- Location: Purpose-built facility in strategic, high-demand data center region
- Power: Redundant power with backup generators and UPS systems in place
- Cooling: High-efficiency cooling systems ensure optimal server performance
- Connectivity: Multiple fiber providers with diverse network paths
- Infrastructure: Racks, cabinets, and on-site hardware
- Security: 24/7 monitoring with multi-layer access control
- Scalability: Room for expansion to meet future client or AI demand
- Compliance: Aligned with key industry standards and uptime protocols
Market Outlook / Competition
- Industry: Data center demand growing with AI, cloud, and enterprise IT needs
- Clients: Long-term SMB and enterprise customers with recurring revenue
- AI Trend: Positioned to serve growing AI infrastructure demand
- Region: Located in established “Data Center Corridor” market
- Competition: Few nearby players with similar uptime, service, and track record
Opportunities for Growth
- AI Upside: AI clients expected to drive $300K+ in new EBITDA this year.
- Market Growth: U.S. data center demand forecasted to grow ~10% annually through 2030
- Customer Momentum: Recent AI installs live; more in pipeline
- Recurring Revenue: Clients offer long-term billing relationships
- Facility Capacity: Site has room and power to scale further
- Strong Industry Multiples: M&A activity remains elevated
Real Estate
Owned or Leased
Leased
About the Sale
Seller Motivation
Owner retiring, ran the business for 20+ years. Business already received an M&A
Transition Support
- Transition: Seller open to supporting based on buyer needs
- Training: 3-month transition period, up to 1 year
- Team: Key staff available to stay; well-trained and familiar with operations
- Flexibility: Buyer can retain current team or bring in their own
- Continuity: Owner available part-time post-close if needed for client handoff
Listing Info
ID
2317197
Listing Views
8713

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Business Listed by: SMB PE Advisors

Listing ID: 2317197 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.