Brew Hems

Business, Investment and money—brewed fresh, minus the jargon.

Micro Data Centre – Owning a modular, Tier II-ready colocation facility Business case

A client once asked me: “Can’t I invest in a Data Centre business?”

Then he paused and said: “But before borrowing capital — can I do it with a small amount of my own?”

Most advisors would’ve stopped him there.

I didn’t.

Because that question — Invest small, Own real infrastructure — is exactly what Entry Point 2 is built for.

Here’s what I told him:

You don’t need ₹400 crore and a Mumbai land parcel.

You need ₹4–5 crore, a Tier 2 city with no organised colocation supply, and 2–3 anchor tenants who sign before you build.

That’s it.

500–2,000 sq ft. Modular. Tier II-ready.
A facility that generates monthly recurring revenue from enterprises that legally cannot put their data on a public cloud.

43% EBITDA margins at 70% utilisation.
8–12x exit multiple when a roll-up acquires you in Year 5.

His “small amount” instinct wasn’t caution.
It was the right entry signal.

The full breakdown of how this works — capex, P&L, go-to-market, risk register — is in this week’s Brew Hems research.

Link BrewHems_Micro DC_Report

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