Glossary

Powered Shell

Also known as: shell and power, powered base building

A data center delivered by the landlord with utility power, backup generation, and base building infrastructure in place, but without the raised floor, cooling distribution, racks, or IT fit-out, which the tenant builds out itself.

Powered shell (sometimes called "shell and power") transfers construction risk and capital expenditure for the technical fit-out to the tenant while allowing the landlord to deliver space faster and with lower up-front capital outlay than a fully fitted "turnkey" or "powered base building" delivery. From an underwriting perspective, powered shell deals typically carry lower landlord basis per megawatt than turnkey but also lower achievable rent, since the tenant is absorbing fit-out capex that would otherwise be amortized into rent; the choice between powered shell and turnkey delivery is frequently the single biggest driver of variance in reported data center pricing per kilowatt across otherwise comparable transactions. Lenders financing powered shell developments must underwrite the risk that a tenant fails to complete its fit-out or walks before commissioning, leaving the landlord with a vacant, non-income-producing asset despite substantial site and infrastructure investment already sunk.