Webinar

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Webinars, blog posts, tutorials and more

We have developed our approach to financial modelling since 2005, and have a continued focus on sharing our expertise in webinars and tutorials to keep pushing the
industry ahead. Our webinar series is an opportunity to learn more about our approach to financial modelling and transaction analysis.

We recommend the DSCR webinar below as an example of the ‘look and feel’ of our financial model and the Portfolio webinar for our broader skillset.

https://financialmodelling.mazars.com/resources/dscr-webinar/ https://financialmodelling.mazars.com/resources/dscr-webinar/ https://financialmodelling.mazars.com/online-resources/webinars/

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Your presenter
Introduction

• Part of Mazars APAC Energy and Infrastructure

• Experience includes financial modelling, bid management, financial advisory

for large scale project finance transactions and particular focus on renewable
energy, digital infrastructure and transportation

• Specialist in feasibility models and portfolio analysis

• Specialist in Energy, Infrastructure and Environment

• Experienced in transaction support

Emilien HARDY
Manager
• Master of Engineering (Civil)
• Master of International Project
Management (Project Finance)
[email protected]

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Your presenter
Introduction

• Part of Mazars APAC Energy and Infrastructure

• Expertise in the renewable energy, data infrastructure, transportation, and

social and economic infrastructure.

• Have supported financial closes, bids and mergers & acquisition transactions
across multiple geographies with emphasis on APAC.

• Audited models across multiple transactions of Energy, Infrastructure and

Environment.

Ankit Gupta
Manager
• Master of Business Administration
(Finance)
• Bachelor of Science
[email protected]

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Our year in numbers
Who we are

Mazars global presence Asia Pacific

1 47,000+ 1,200+ 8,900+

global partnership professionals globally partners globally professionals regionally

95+ +16.4% €2.45bn 60

countries and territories growth in fee income annual fee income offices regionally

Latest figures for FY 2022

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About Mazars
Our global coverage

Integrated countries and territories

Non-integrated countries and

territories: Mazars correspondents
and representative offices

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About Mazars
Financial Modelling

A trusted advisor
Mazars Financial Modelling designs and delivers world-
leading financial modelling, valuations and project finance
courses for professionals and teams in infrastructure, energy,
natural resources and real estate.

• Thought leaders in the world of analytical consulting

• A team of specialists
• Extensive global client base
• Best practice modelling methodology
• Trained over 15,000 people world wide

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Overview
Key topics

1 Introduction

2 Overview of Data Centre

3 Types of Data Centres

4 Modelling contracts

5 Churn and new contracts

6 Power cost and power usage effectiveness

7 Q&A

8 Conclusion

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Overview of Data Centre infrastructure
Overview of Data Centre infrastructure
What is a Data Centre?
• Definition
• A building (or room) used to store a large group of networked computer
servers (the IT infrastructure)
• Crucial for remote storage, processing and distribution of (large) amount of
data
• Backbone of modern businesses and essential for delivering online services
and managing IT infrastructure
• Evolution of Data Centres
• Evolved from small localized server rooms to large complex facilities
• Growing demand for data centres driven by business digitalisation and
surge in data intensive applications

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Overview of Data Centre infrastructure
Main components of a Data Centre

• Main components

• The Facility
• Servers and storage
• Network connectivity
• Power Infrastructure
• Cooling Systems
• Security measures

Source: https://technologyevaneglist.wordpress.com/ 11
Types of Data Centres
Types of Data Centres
Main classification

Colocation Colocation
Enterprise Hyperscale Others
Retail Wholesale
• In house IT • Multi-tenant • Multi-tenant • Cloud service • Micro/edge
infrastructure • Power, • Operator providers data centres
• Varying size Cooling, provides focused • Modular /
• Single tenant network and space and • Large facility container /
security is power and IT prefabricated
outsourced to • Management infrastructure data halls
operator remains with and power
• 100kW to customer needs
1MW • 500kW to
5MW

Note: We are not covering Enterprise and micro modular data centres in this webinar

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Modelling contracts
Types of Data Centres
Modelling contracts

Modelling different types of contracts

• We will focus on the operator point of view
• There are many different structures depending on the operator business model!
• For modelling purpose, we can build most of them by designing the workings around (i) individual contracts structure and (ii)
grouped contracts structure

Data Centre contracts modelling

Master contracts Secondary contracts

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Types of Data Centres
Modelling contracts

Data Centre contracts

Master contracts Secondary contracts

• Contracts are modelled individually • Revenue are driven by cumulative sold capacity
• Mostly applicable to Hyperscale and Wholesale contracts • Monthly recurring revenue derived from average price per
kW basis (usually higher) by client types rather than
• Different contract inputs (capacity, duration, price, individual contracts
renewal) based on each customer specifics
• Value added services (mostly for retail and to a certain
• Monthly recurring revenue usually based on a lower price extent Wholesale) driven by per kW inputs
per kW basis
• Non-recurring revenue driven by signed contract capacity
• Non-recurring revenues can either be fixed at signature or (as opposed to cumulative capacity)
based on capex spent

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Churn and new contracts
Churn and new contracts
What is churn and why is it important?
• Data centre churn
• Also known as customer churn or tenant churn
• Quantifies the turnover of clients (colocation) within the data centre facility
• It is necessary to measures the rates at which business sign up for data
centre services vs the rate at which they terminate their contract
• Key factors
• Contract expiration
• Customer relocation or consolidation
• Quality, performance and cost considerations
• Impact
• Revenue and profitability
• Customer acquisition costs

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Power cost and power usage effectiveness
Power cost and power usage effectiveness
What is Power Usage Effectiveness (PUE)?
• How are power cost contracted?
• Power cost can either be covered by a fixed fee or passed through
• Fixed fee are more common for retail and to a certain extent wholesale customers
• Pass through means that the operator bills the customer for the actual electricity
cost incurred (no markup) leading to more transparency regarding power expenses
• PUE
• Measures how efficiently a data centre uses energy
• Calculated as total energy consumed divided by energy consumed by the IT
equipment
• Pass through contracts with PUE cap
• By setting a PUE cap data centre operators commit to a certain level of efficiency
• Energy costs over and above the PUE cap are borne by the operator
• A portion of the energy consumption risk is transferred back to the operator

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Questions
Conclusion
Financial modelling: Data Centre financial modelling

1 Demand for Data centres is exploding and should

2 Simplify modelling with master vs. secondary contracts

3 Be careful about churn and new contracts

4 Power cost can be passed through, absorbed or capped

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