Stabilized occupancy

Stabilized occupancy is the level of leased capacity at which a data center is considered fully ramped. Its income can then be treated as steady rather than still growing. Lenders and appraisers usually set the threshold at a fixed share of available critical IT load, often 85-95%, rather than 100%, to allow for churn and spare capacity held for existing customers. The measure matters because valuation and financing for new data centers depend on it: cap rates are applied to stabilized net operating income, while yield-on-cost compares that income to build cost. Facilities backed by prelease agreements reach stabilization faster, whereas speculative builds can take several years to fill. Phased campuses are often assessed hall by hall.