A developer of data centre capacity in a Western European market offered the firm a substantial minority position at a valuation supported by a pipeline of six sites totalling several hundred megawatts.
Five of the six sites held indicative grid connection offers. One held a contracted energisation date. The valuation attributed broadly similar value per megawatt across all six.
Sapna Ventures' assessment was that the pipeline contained one asset and five options on the behaviour of a utility, and that the market in that jurisdiction had already produced multiple instances of indicative offers being deferred by four years or more. Sapna Ventures offered on the contracted site alone and was declined.
The position was subsequently taken by another investor at close to the asking price. That may prove to have been the better judgement. The firm records it here because the discipline it reflects is one that families are entitled to see applied consistently, including when it costs something.