Key takeaways
- Tenant representation means the advisor works for the company signing the lease, not for the landlord.
- At wholesale scale, much of the best capacity is committed through relationships before it is ever marketed. Access matters as much as negotiation.
- In most data center transactions the provider pays the broker. Ask every broker who pays them, on which options, and get the answer in writing.
- A good broker labels energized capacity, capacity under construction and announced capacity as three different things, and compares proposals on full-term cost per usable kW.
What a data center broker does
Commercial real estate has two kinds of broker. A landlord or listing broker markets a building for its owner. A tenant representative searches the whole market for the company that needs space and negotiates on its behalf. Some firms do both in the same market, which is why disclosure matters.
In data centers the tenant side covers more than real estate. The lease buys power, cooling, redundancy and connectivity as much as it buys a room. A tenant representative for a wholesale requirement typically handles:
- Requirement definition. Critical IT load by phase, rack density, cooling method, redundancy, markets, delivery dates and term, written so operators can price it.
- Market survey. Which operators and developers have energized capacity, which have capacity under construction with a committed utility date, and which only have plans.
- RFP and financial analysis. A structured request so every proposal answers the same questions, then a full-term cost model that puts them side by side.
- Tours and diligence. Site visits, single-line diagrams, commissioning status and a close look at the delivery schedule.
- Negotiation. Letter of intent and lease terms, working alongside your legal counsel rather than in place of it.
- Delivery and growth. Tracking milestones, enforcing remedies if dates slip, and positioning the next phase and the renewal early.
Why wholesale requirements need representation
Retail colocation is bought off a rate card: cabinets, circuits and cross-connects at listed prices. Wholesale capacity is negotiated, and three things make that negotiation lopsided when a tenant goes alone.
The size of the commitment
Wholesale rent is quoted per kilowatt of critical IT load per month. At an illustrative $150 per kW per month, a 10 MW lease costs $1.5 million a month, or $18 million a year, before power and before any escalator. Over a ten-year term, small differences in the rate, the escalator or the ramp move millions of dollars. See our wholesale lease rate guide for published benchmarks.
Who has seen the recent deals
Operators and developers see every transaction in their markets. A tenant signs a wholesale lease every several years. A representative who is in the market every week knows what comparable tenants have recently agreed to on rent, escalators, ramp, renewal and delivery remedies.
Capacity that is never listed
Much new wholesale capacity is leased before construction finishes, and a lot of it is committed before it is ever marketed. Operators answer a defined requirement from an advisor they already work with. They rarely answer a search engine. Our hyperscale and AI capacity guide covers how preleasing works.
How data center brokers are paid, and how we are paid
In most data center transactions the provider pays the broker. The payment is typically set in an agreement between the broker and the provider, and it does not appear as a line on the tenant's invoice. That is standard, and it is also a potential conflict, so every tenant should understand it on every option.
Our compensation
Data Center Scouts is free to tenants. We are compensated by the provider you choose through us, through the agency relationships held by Foretel Solutions and Bridgepointe Technologies. We disclose that relationship on every shortlist.
Those relationships are wide, but they are not universal. When a provider we are not paid by is a materially better fit for your requirement, we will name it and tell you plainly that we are not compensated on it. A provider's willingness to pay us is never evidence that it is the best fit.
How we handle conflicts of interest
- Your written requirement is the scoring baseline, agreed before any proposal arrives.
- Verified facts stay separate from estimates, assumptions and provider marketing, and each is labeled.
- Material commercial relationships are disclosed wherever they could affect the comparison.
- Technical, delivery and commercial exceptions are shown, not smoothed over.
- Known non-compensating options are included when they are materially better suited.
- You make the final decision. We make the case, in writing, for how we would decide.
Landowners and developers
Work for landowners and developers is scoped differently. If we proceed past a first conversation, we agree in writing who we are working for, and any fees or provider compensation, before the engagement starts. See data center land and developers.
Questions to ask any data center broker
These apply to us as much as to anyone else. A broker worth hiring answers all of them without hesitation.
| Ask | Why it matters |
|---|---|
| Who pays you, and on which of the options you are showing me? | Compensation that differs by provider can shape a shortlist. You should see it for every option. |
| Do you represent landlords or developers in this market? | Dual representation is common. It is manageable when disclosed and a problem when it is not. |
| Will you include providers that do not pay you? | The best fit may be outside a broker's relationships. You want to hear about it anyway. |
| How do you confirm capacity is energized? | Energized, under construction and announced capacity are often quoted at similar rents. They are different products. |
| Can I see a full-term cost model for every proposal? | Rent per kW alone hides escalators, ramp floors, power terms and one-time costs. |
| Who does the work day to day? | The person who pitches the engagement should be the person who runs it. |
What you get from us
- A requirement brief you approve before any operator sees it. Operators hear about the requirement without your name until you choose to share it.
- A verified shortlist that shows, for each option, the hall or building, usable IT capacity at your density, the utility status, the delivery date and the expansion path.
- Normalized proposals in a single full-term model: rent, escalators, ramp, power treatment, one-time costs and renewal pricing.
- Negotiation support through the letter of intent and lease, alongside your counsel.
- Delivery tracking against the dates and remedies in the lease, and early work on the next phase and the renewal.
Behind each search is Bridgepointe Technologies, which reports more than 1,200 completed projects in its data center and cloud practice and a team of more than 400 strategists, consultants, engineers and support staff. When a requirement also involves network, cloud connectivity or migration, the same relationship covers it.
One published example: Hive, an AI company, has run 15 data center and connectivity projects through Bridgepointe, and its co-founder puts the time saved at 180 hours or more. Read the case study.
Brokerage, advisor or do it yourself
There is more than one right way to run a wholesale search. The choice depends on how often your team does this and what else the decision touches.
| Approach | Strengths | Watch for |
|---|---|---|
| Run it yourself | Direct relationships, no intermediary | Limited view of recent deal terms and off-market capacity. Works best for teams that lease every year. |
| Large commercial real estate brokerage | Deep research teams and broad landlord coverage | Some firms also represent landlords in the same market. Ask how that is handled. |
| Technology advisor such as Data Center Scouts | Provider relationships across data center, network and cloud, useful when connectivity and cloud access shape the decision | Compensation comes from providers. Ask for the disclosure on every option, as above. |
Frequently asked questions
Do I pay a data center broker?
Not with us. We are compensated by the provider you choose. Other brokers may be paid the same way or may charge a fee. Ask, and get the answer in writing.
Does using a broker raise my rent?
Our compensation does not appear on your invoice, and rent is set by competition for your requirement. The strongest protection on price and terms is several qualified operators pricing the same requirement at the same time, which is what a structured search creates.
How early should a wholesale search start?
Earlier than most tenants expect. New capacity is often leased before it is finished, and utility dates in many markets are measured in years. If you need power on a specific date, start with the utility and delivery timeline and work backward.
Can you help with a renewal or an expansion?
Yes. Start well ahead of the notice date in your lease. Leverage on a renewal comes from a credible alternative, and building one takes time.
Do you work outside the United States?
Our focus is North America. Bridgepointe's data center practice also supports colocation requirements in other regions.
Is my requirement kept confidential?
Yes. We describe it to operators without naming you until you agree, and we will work under your NDA before you share specifics.