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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or ‘binding and conclusive’ provisions, and on applicable state law.

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Data Center

Last updated: April 2026

By Angel Campa, Founder

Data center CAM is dominated by power and cooling costs. Verify PUE calculations, redundancy tier billing, and allocation methodology to avoid overpaying.

What Is a Data Center?

A data center is a specialized facility designed to house computing infrastructure, servers, and networking equipment. These properties require massive power capacity, redundant cooling systems, and uninterruptible power supplies. CAM or operating expense charges in data centers are dominated by electricity, HVAC, and security costs, making them fundamentally different from any other commercial property type.

Typical Lease

Triple Net (NNN) or Powered Shell

Avg CAM/SF

$30.00 to $80.00+

Mgmt Fee %

2% to 4%

How CAM Works in a Data Center

Data center CAM is unlike any other property type. Power costs alone can exceed $50/SF depending on density and PUE (Power Usage Effectiveness). Colocation tenants pay for their actual power consumption plus a share of cooling, security, and facility infrastructure. Wholesale tenants may pay on a per-megawatt basis with CAM as a separate pass-through for shared facility costs.

Common Tenants

Cloud providersEnterprise IT departmentsManaged service providersFinancial institutionsHealthcare systems

Expense Categories Unique to This Property Type

  • •Cooling and HVAC for server environments
  • •Uninterruptible power supply (UPS) maintenance
  • •Backup generator fuel and maintenance
  • •Physical security and biometric access systems
  • •Fire suppression (clean agent systems)
  • •Connectivity and carrier access infrastructure

Common Overcharges to Watch

⚠PUE-based billing that overstates cooling costs

Power Usage Effectiveness (PUE) measures total facility power divided by IT equipment power. An inflated PUE figure means tenants are billed for more cooling overhead than actually consumed. Verify the PUE calculation methodology and compare against independent metering.

⚠Redundancy costs billed beyond contracted SLA tier

Data centers offer different redundancy tiers (N, N+1, 2N). If your lease specifies N+1 redundancy, you should not be paying for 2N infrastructure costs through CAM. Landlords may pass through costs for higher-tier redundancy that exceeds your contracted level.

⚠Shared infrastructure costs allocated by rack count rather than power draw

In colocation environments, allocating shared costs by rack count penalizes low-density tenants. A half-populated rack pays the same as a fully loaded rack, even though power and cooling consumption differ dramatically.

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Key Data

  • 1.58 PUE

    The average data center PUE is estimated at 1.58, meaning 58% overhead on IT power consumption [industry estimate]

    Source: Uptime Institute Global Data Center Survey (2024)

Explore Other Property Types

Strip CenterRegional MallPower CenterLifestyle CenterOutlet MallOffice TowerSuburban Office ParkMedical Office BuildingIndustrial WarehouseFlex SpaceMixed-Use DevelopmentStandalone Pad Site / Outparcel
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Audit Your Data Center Operating Expenses

Upload two PDFs. 14 detection rules. Under 15 minutes. Free.

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Explore Related Resources

Lease ClauseAudit Rights ClauseLease ClauseCAM Exclusion ClauseProperty TypeRegional MallProperty TypePower CenterGlossaryCapital ExpenditureGlossaryCAM Charges

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Related Resources

Detection RuleExcluded Service ChargesDetection RuleManagement Fee OverchargeDetection RulePro-Rata Share ErrorResourcesCAM Audit by Lease TypeResourcesLease Clauses GuideToolsFree CAM Audit Tools

Frequently asked questions

This page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.