Hot Listing

20+ Year Profitable Data Center For Sale, Owner Retiring

Asking Price$2,030,302

Cash Flow

EBITDA$238,859

Gross Revenue$816,061

InventoryNot Disclosed

FF&ENot Disclosed

Data Center For Sale
Data Center For Sale
Data Center For Sale
Data Center For Sale
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Hot Listing

20+ Year Profitable Data Center For Sale, Owner Retiring


Asking Price$2,030,302

Cash Flow

EBITDA$238,859

Gross Revenue$816,061

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: $238,859
- Asking Price: $2,030,302
- 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
26
Facilities & Assets
Established facility in a strategic, high-demand data center market. Redundant power with UPS and backup generators. High-efficiency cooling to maintain optimal server performance. Carrier-neutral connectivity with multiple fiber providers and diverse network paths. Fully equipped racks, cabinets and on-site hardware. 24/7 monitoring with multi-layer access control. Room to scale for additional clients or AI workloads. Built to meet key industry compliance and uptime standard
Market Outlook / Competition
Data center demand is growing from AI, cloud, and enterprise IT. Clients are long-term SMB and enterprise accounts with recurring revenue. The facility is well positioned to serve rising AI infrastructure needs. Located in an established “Data Center Corridor”. Competition — few nearby operators match this facility’s uptime, service levels, and track record at regional size.
Opportunities for Growth
AI upside: AI clients expected to add $300K+ EBITDA this year. Industry U.S. data center demand projected to grow ~10% annually through 2030. Recent AI installs with more in the pipeline. Stable recurring revenue from long-term client billing. Minimal churn %. Facility has room and power to scale.
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
Seller will support transition to buyer needs. Training: 3-month handover, extendable to 12 months. Key staff available to stay — trained and familiar with operations. Buyer may retain the current team or bring replacements. Owner available part-time post-close to assist with client handoffs.
Listing Info
ID
2317197
Listing Views
12241

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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.


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