Problem Statement

To assess and evaluate lending policy for data center industry by evaluating credit risk parameters related to data center industry and entities as well as providing inputs on risk framework of the creditor.

Solution Provided

Crisil Intelligence performed a detailed assessment of data center industry by identifying sectoral parameters like demand, competitive intensity, cost structure to assess the key risks involved in the industry. Crisil Intelligence also elaborated on project specific risks in the data center industry including operational and financial risks. Crisil Intelligence took deep dive into regulatory aspects covering key government policies, approvals, incentives etc., which shape the overall regulatory landscape of the industry. Crisil Intelligence also provided a risk framework for the lending practices focusing on project specific operational risks and financial risks with weightages for each of the parameters under these risk heads.

Impact on Client

Crisil Intelligence's feasibility and risk assessment of the data center industry acted as a guiding framework for the creditors to review and improve their lending and credit assessment policies. The study also provided technical insights to creditors on data center industry with respect to its operations, industry dynamics etc.