Owners who understand what lenders and their advisers look for can prepare the right documents early and avoid months of back-and-forth. This guide walks through the main areas of review and what a well-prepared data center power project shows in each one.
Who carries out the review
Lenders normally appoint an independent engineer, sometimes called the lenders’ technical adviser, to review the project on their behalf. Equity investors may appoint their own adviser or rely on the same report. The adviser reads the contracts, design documents, studies and schedules, visits the site and factory where useful, and writes a report that feeds directly into credit decisions.
Their role continues after financial close. During construction they review progress and certify drawdowns, and at completion they confirm whether tests have been passed. Treat the adviser as a long-term reader of your project, not a one-off hurdle, and give them a single organised data room.
Technology and track record
The first question is whether the chosen turbines, generators and balance of plant are proven in similar duty. Lenders are comfortable with equipment that has a long operating record and established service support, and more cautious with first-of-a-kind configurations or units adapted for a new application. Used or refurbished turbines need clear evidence of condition and overhaul history.
For new modular products, advisers look at factory testing, the supply chain and the manufacturer’s support commitments. The New USP&E FX-45 45MW Modular Gas Turbine for the Hyperscale Data Center sector in the USA, with slots from 2028 to 2030, is one example of new capacity offered for later campus phases; any slot reservation should be documented clearly in the data room.
Contract structure and risk allocation
Advisers check how construction risk is shared. A single EPC contract with a fixed price, a firm completion date, performance guarantees and liquidated damages is the structure lenders understand best. Split packages can work, but the interfaces between them must be covered so that no gap falls back on the borrower.
They also read the warranty terms, the limits of liability and the security behind the contractor’s obligations. Our article on performance guarantees for data center turbines explains how output and heat rate guarantees are usually framed.
Fuel supply and the data center load
A gas turbine plant is only as reliable as its gas. Lenders want to see a gas supply agreement whose firmness, pressure, quality and term match the plant’s needs, a pipeline connection with a credible schedule, and a plan for any backup fuel. Interruptible supply may be acceptable for some duties but needs to be reflected in the availability case.
On the demand side, advisers review the campus load forecast, the offtake arrangement with the data center operator and how the plant behaves when compute load swings quickly. A plant that can follow the load without trips is easier to finance than one that depends on optimistic assumptions.
Permits, land and grid interface
Air permits, planning consents, water use and noise limits all need to be in place or on a clear path before close. Advisers check that the permit conditions match the design, for example that permitted running hours and emissions limits fit the expected duty. Our page on data center turbine permits lists the usual consents.
If the plant will also connect to the grid, the interconnection agreement, protection requirements and any grid code obligations are reviewed. For fully islanded plants, the focus moves to black start capability and the resilience of the internal network.
Availability, redundancy and performance model
Lenders base their cash flow on an availability figure, so the adviser tests how that figure was derived. They look at unit count and redundancy, planned maintenance outages, forced outage assumptions, degradation between overhauls and the effect of hot weather on output. Each assumption should be traceable to manufacturer data or operating experience.
A simple, transparent model with clear inputs builds more confidence than a complex one. Show how the plant still meets the critical load with one unit in maintenance and another tripped, if that is the redundancy target.
Operations, maintenance and spares
Who will run the plant, under what contract and with what incentives? Advisers review the O&M agreement, any long-term service agreement with the turbine supplier, the staffing plan and the spare parts strategy. They want to see that major overhauls are funded, often through a maintenance reserve, and that critical spares can be obtained quickly.
Experienced operators with a record on similar plants are a strong positive. So are clear key performance indicators tied to availability and heat rate, with remedies if they are missed.
Insurance, testing and completion
Construction all-risks, operational property damage and business interruption cover are reviewed by the lenders’ insurance adviser, but the technical adviser checks that the insured values and deductibles match the risks identified in the plant. Machinery breakdown cover for turbines and generators deserves particular attention.
Finally, the adviser agrees the completion tests that will release the borrower from construction-phase obligations: reliability runs, performance tests and functional tests of black start and island operation. Agreeing those procedures before construction removes one of the most common sources of late disputes. For context on running turbines as primary supply, see gas turbine prime power for data centers.
About this guidance
Our data center generation team prepares technical packages that owners, investors and their advisers review before committing to a campus plant. USP&E designs, builds and maintains power plants in its own name and does not act as a broker; it brings 24+ years in power, 25,000 MW contracted since 2002 and 150+ power projects in 45+ countries to that preparation. Data center work is summarised on our data center power overview.
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Financing questions
Who reviews a data center gas turbine plant for lenders?
An independent engineer or lenders’ technical adviser reviews the technology, contracts, fuel supply, permits, availability model, O&M and testing on the lenders’ behalf.
Do lenders accept used gas turbines?
They can, if there is clear evidence of condition, overhaul history and service support, and if the availability model reflects the equipment’s age.
What fuel supply evidence do lenders want?
A gas supply agreement whose firmness, pressure, quality and term match the plant, a credible pipeline connection schedule and a plan for any backup fuel.
Which tests matter most at completion?
Reliability runs, performance tests and functional tests of black start and island operation, under procedures agreed before construction.
Prepare your plant for financing
Share your campus plan and draft contracts, and our engineers will help you assemble the technical evidence lenders expect to see.
Attach whatever you have, even a rough load list, to a note through the data center power enquiry, or write to info@uspeglobal.com; the number to call is +27 10 822 2324. Turbines available for earlier campus phases are listed in our natural gas turbine stock.