Question · Q4 2025
Frank G. Louthan asked about the current market valuation for Cogent's data centers, considering the original target of $9-10 million per megawatt, and explored the potential for leasing these assets. He also questioned the additional room for pricing and leasing more IPv4 licenses.
Answer
CEO Dave Schaeffer stated that IPv4 leasing revenue grew 44% year-over-year, with 46% of addresses currently leased, and anticipated continued growth. Regarding data centers, he noted that valuations have improved over the past year, but Cogent's repurposed switch sites differ from purpose-built campuses. He emphasized the focus on sales to monetize a significant portion of the footprint, which would provide cash proceeds and reduce operating expenses, without disclosing specific per-megawatt pricing to maximize negotiation value.
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