Data Centers and AI Infrastructure
Every generation of data center carries distinct valuation characteristics. None of them should be assessed the same way. Most are.
THE FOUNDATIONAL ERROR
Gen 5 facilities are routinely
taxed on Gen 2 formulas
THE ASSESSOR SEES
$/sqft · replacement cost · stabilized income
THE MARKET VALUES
$/kW critical IT load · power density · tier redundancy
THE GAP
Recoverable through a correctly argued appeal
VALUATION APPROACH
We correct the foundational gap
at every level of the appeal.
Your assessor prices in dollars per square foot. The market prices in dollars per kilowatt of critical IT load. Each technology generation demands its own valuation framework. We correct this foundational gap at every level of the appeal.
1
The Methodology Error
3
Highest & Best Use
For older facilities, we prove when improvements contribute zero value — resetting assessments to land value or below. If you cannot use the megawatts you built for, you should not be taxed on them.
2
Functional Obsolescence
Power-density limits, cooling constraints, grid interconnection delays, and technology generation shifts all create recoverable obsolescence. Gen 5 facilities are routinely taxed on Gen 3 formulas. We argue this correctly.
4
Coordinated BPP & Sales Tax
Servers, cooling systems, UPS infrastructure, and GPU hardware are commonly misclassified or over-depreciated. We coordinate the BPP and sales & use tax appeal with the real property appeal for a combined reduction neither produces independently.
HYPERSCALE
Hyperscale, Cloud & Carrier
Valued in $/kW of critical IT load, not $/sqft. Power density, redundancy tier, and net lease structure drive the economics
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Hyperscale & Cloud Campus
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Turnkey & Build-to-Suit
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Powered Shell & Dark Shell
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Colocation (Retail & Wholesale)
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Carrier Hotels
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Carrier-Neutral & Internet Exchange
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Internet Gateways & Switching
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Nuclear-Powered Facilities
COLOCATION
Owner-Occupied, Edge & Special Purpose
Functional obsolescence and highest & best use arguments are most consequential here. Often the facility's repositioning economics are upside down.
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Mission Critical (Tier III & IV)
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Enterprise & Owner-Occupied
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Disaster Recovery & Business Continuity
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Modular & Containerized Facilities
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Mission Critical Tech Office
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Edge & Metro Facilities
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Bitcoin & Crypto Mining
VALUATION EXPERTISE
GPU Clusters, Liquid Cooling & Legacy Conversion
The widest gap between assessment and market reality. Gen 5 facilities are routinely taxed on Gen 2 formulas. Gen 1 conversions often support value at or below land.
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AI & GPU Training Clusters
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Liquid & Immersion-Cooled Facilities
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High-Density Power Infrastructure
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Next-Gen Energy-Sourced Facilities
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Gen 1–2: Legacy & Converted
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Gen 3: Modern Colocation (Tier III)