Analysis and Evaluation of the Effectiveness of Data Center Creation Projects Taking into Account Real Options

• Published in: Systems of Signals Generating and Processing in the Field of on Board Communications (Online) pp. 1 - 4
• Main Authors: Semenov, Andrey B., Sidnev, Sergei A., Tsarenko, Vladimir A.
• Format: Conference Proceeding
• Language: English
• Published: IEEE 12.03.2025
• Subjects: Accuracy; Black-Scholes model; Companies; Costs; Data centers; Data models; Data processing; Data processing center (DPC); Economic efficiency; Hurwitz method; Investment; Net present value (NPV); Planning; Probabilistic logic; Real Options; Uncertainty
• ISSN: 2768-0118
• DOI: 10.1109/IEEECONF64229.2025.10948077

This article presents an approach to assessing data center (DPC) projects based on the real options concept. These projects are characterized by a high degree of uncertainty, long commissioning periods, and the need for ongoing management. The authors demonstrate the feasibility of using this approach. They show that its application allows for more effective analysis and assessment of the economic efficiency of such projects. The article presents the methodology and results of calculating the economic efficiency of a DPC project using the real options method. The use of real options allows companies to reduce risks, increase revenues, and optimize costs when implementing DPC projects. The presented calculation methodology, based on the Black-Scholes model, allows for assessing the increase in profit and cash flow with additional investment in the project. The article also describes the Hurwitz method, which is used together with the real options concept. This allows for substantiating decisions made under uncertainty. The authors presents the results of calculating the economic efficiency of a DPC project using the Hurwitz method and the real options concept. These results confirm the feasibility of using this approach to analyze and evaluate such projects.