Cogent Communications: Challenges Monetizing Small-Scale Data Centers
Former Senior Managing Director at JLL
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Cogent Communications: Challenges Monetizing Small-Scale Data Centers(July 31, 2025)
Former Senior Managing Director at JLL
Interview Transcript
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Yes.
Regarding Cogent, the problem with smaller sites is that unless you unlock a lot more power, you need to be at least at 50 megawatts to be competitive. This is a scale game on the investment side. A poor example, but you'll understand. If you're running an airline you there's probably some break point where like you say, I want at least 200 seats. You're not going to run an airline with five seats. And that's the parallel with respect to the stuff that you're talking about. It's just too small. You're not going to get a lot of interest because with the operating expenses, you get the benefit of scale. It's so expensive to have engineers there. There are these costs because you're maintaining the environment. So it's just the opex and the capex. So I would say, maybe you get away with 30, but you really probably want 50 and then it goes to portfolio value. You go to market with that stuff. No one's going to want that stuff when it's that small. It doesn't move the needle. It doesn't do anything for me.
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