Data Center Cap Rates: How Investors Price Them
Data center cap rates are rarely published as a single figure. CBRE says Class A data centers trade 100 to 150 basis points over the 10-year Treasury. What that means.
By the CapRateCalculator.co team
Data center cap rates are rarely published as a single number. Instead, CBRE describes Class A data centers as trading at cap rates typically 100 to 150 basis points above the 10-year Treasury yield, and it reported them as stable in the second half of 2025. To estimate a current cap rate, add that spread to the Treasury yield on the day you are pricing.
Using the spread to estimate a cap rate
Cap rate estimate = 10-year Treasury yield + 1.00 to 1.50 points.
The Boulder Group’s third-quarter 2026 net lease report noted the 10-year Treasury rising above 5%. At a 5.0% Treasury yield, CBRE’s spread implies about 6.0% to 6.5% for Class A data centers. That is an estimate built from the spread, not a survey figure, and it moves every time Treasury yields move.
| Assumed 10-year Treasury | Implied Class A cap rate |
|---|---|
| 4.0% | 5.0% to 5.5% |
| 4.5% | 5.5% to 6.0% |
| 5.0% | 6.0% to 6.5% |
Value at those cap rates
| Cap rate | Value of $10,000,000 NOI |
|---|---|
| 6.0% | $166,667,000 |
| 6.25% | $160,000,000 |
| 6.5% | $153,846,000 |
Why data centers are priced like bonds
The best data centers are leased to the largest cloud and technology companies on long terms, often 10 to 15 years, sometimes as powered shells where the tenant installs its own equipment. With that tenant credit and lease length, the income looks like a corporate bond, and investors price it as a spread over Treasuries, the same way they price net lease property.
What changes the cap rate
Tenant and lease. A hyperscale tenant on a long lease is the low end. Multi-tenant colocation facilities with shorter contracts carry more leasing risk and trade higher.
Power. Available power is now the main limit on new data center supply. A site with secured capacity is worth more.
Building type. Powered shells are simpler real estate. Fully fitted facilities where the owner provides cooling and power systems carry more operating and capital risk.
Interest rates. Because the pricing starts from Treasuries, data center values swing with bond yields. The cap rate and interest rate guide explains that link. See cap rates by property type for other sectors.
Sources: CBRE North America Data Center Trends H2 2025; The Boulder Group, Net Lease Market Report Q3 2026.
Frequently asked questions
What is the cap rate for data centers?
No major survey publishes a national data center cap rate. CBRE describes Class A data center cap rates as typically 100 to 150 basis points above the 10-year Treasury yield. Add that spread to the current Treasury yield for a rough range, and check it against recent sales.
Why are data center cap rates tied to Treasury yields?
Class A data centers are leased to very large technology companies on long terms, so the income behaves much like a high-grade bond. Buyers price it as a spread over a risk-free rate, the same way they price the safest net lease property.
What makes one data center riskier than another?
Tenant credit, lease length, available power, and how specialized the building is. A powered shell leased long term to a large cloud provider is very different from a multi-tenant colocation facility with short contracts, which behaves more like an operating business.