SBA 7(a) Data Center Feasibility Study in Minnesota

Data centers at small-business scale

Minnesota data centers under 7(a) are not hyperscale campuses. The midpoint of $89,000 is 0.45x the nation's 7(a) data-center figure, and the quartiles sit at only $47,500 and $275,000. The 27 loans total $12.8 million, with the dollar figures lifted by FY2021, when 5 loans carried $5.5 million, and FY2026, when 1 loan carried $4.0 million. No loan is franchised, at 0.00%.

Ranks, holder and places

Minnesota ranks 12 among states by count, while data center is 23 of 39 at home. A single lender appears: U.S. Bank, National Association, with 9 loans and $924,000 on SBA's current-holder list. Counties split evenly at the top, Dakota and Hennepin at 6 each, then Itasca at 4 and Anoka and Stearns at 3, which places the lending around the Twin Cities with a notable presence far to the north.

What the code mixes

Colocation space cannot be isolated from hosting services, and one industry code covers data processing and hosting firms of every kind. A loan in this cell may fund a small hosting firm that rents space or servers, and not a purpose-built colocation facility. Minnesota's cancellation and charge-off percentages are missing, both cohorts being under SBA's minimum.

Power, customers and phasing for a Minnesota facility

Begin with the customer. A colocation or hosting business sells reliability, so the study should show who will buy, on what contract terms, at what price per rack or per megawatt, and what the pipeline looks like. Power is the central constraint: show the utility service available, the cost per unit, the redundancy and the time to energize. Cooling, backup generation, fire suppression and network carriers are major costs and should be itemised with engineering support. Minnesota's cold climate can lower cooling cost, and the study may say so, with data. Show the build-out in phases and the revenue at each phase. A midpoint near $89,000 implies most of these loans are small, so the study needs to state whether the plan converts existing space or constructs a building. Coverage must hold through a slow sales ramp. The appraisal should value the shell for a general user.