Converting Assets to Edge Data Centers

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INDUSTRY CHALLENGE

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In today’s digital-first landscape, property developers are increasingly converting underutilized real estate into edge data centers to meet growing regional demand. These facilities deliver localized computing, storage, and network resources closer to end users and devices and support a wide range of use cases from healthcare and life sciences to retail, banking, and autonomous vehicles. Successfully repurposing these properties requires careful evaluation of key factors such as space utilization, power availability, cooling capacity, scalability, and structural suitability. Each site must be assessed and designed to support the infrastructure required for secure, resilient, and high-performing edge deployment.

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APPROACH
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One example of LEDG’s work in this sector is engagement with a private equity firm representing a client who owns a warehouse in an industrial sector in the southeastern U.S. The client sought to explore the feasibility of upgrading the facility's utility services, converting it into a high-density, edge data center, and transforming the industrial warehouse into a state-of-the-art data center that could support high-density computing operations. The client's goal was to lease the data center space to a potential tenant or partner with a data center provider to run the facility as a colocation solution.
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For an edge data center conversion, key deliverables may include:
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• A due diligence assessment of the existing building, site and site utilities, existing infrastructure, and possible infrastructure upgrades that will define the feasibility of converting the warehouse into an edge data center,
  
• A supplemental conceptual design study including architectural, structural, civil, mechanical, electrical, and plumbing (MEP) design services to outline the essential infrastructure needed to support the data center's operational requirements,  
• A Rough Order of Magnitude (ROM) project costing gives the client an understanding of the potential costs detailing the investment required to upgrade the facility and convert it into a functional edge data center.

As part of the study, LEDG evaluated the existing utility services, including power, cooling, and telecommunications, to determine what upgrades or expansions would be necessary to support the facilities energy-intensive demands. The team also analyzed the warehouse's architectural and structural elements to identify any modifications needed to accommodate the specialized infrastructure and ensure the building would meet all data center operational and safety standards.

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RESULTS
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LEDG's due diligence assessment and conceptual design provided the client with a clear understanding of the property's capabilities, limitations, and transformational potential and created a roadmap for converting the warehouse into a viable high-density edge data center. The detailed ROM cost estimates offered realistic investment projections, enabling the client to evaluate leasing or partnership options with confidence. The insights also supported tenant conversations by demonstrating that the site could meet the performance, reliability, and responsiveness required for advanced computing workloads.

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