CONFERENCE CALL REPLAY | Not All Raised Floor Is Created Equal: Initiating Coverage of the Data Centers
April 13, 2018, 10:00 am ET
The Data Centers directly benefit from many of the mega-trends propelling the broader TMT space. It’s not surprising that it’s a well-liked sector, and all indicators suggest years of growth ahead. However, rapid growth can oftentimes serve to distract observers from fully appreciating differences in business model quality and the degree to which growth translates into value. Data centers are a diverse group and their value creation track records and outlooks differ meaningfully. Against this backdrop, it is critical for investors to understand the following topics:
- How will the rise of cloud service providers affect the various sub-sectors?
- Which data center businesses have pricing power?
- Can lower data center build costs be a sustainable competitive advantage?
- How should we think about maintenance and growth capex requirements?
- What returns do data centers generate?
- Are the valuation metrics investors use appropriate?
In a clients-only conference call, Nick Del Deo will discuss our outlooks and recommendations for the Data Centers and cover the key questions listed above.
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