Data Centers Powered by Natural Gas: Opportunities for Landowners
- Craig Kaiser
- Dec 9, 2025
- 6 min read
The world runs on data. Every email, video stream, and online search is processed and stored in massive buildings called data centers. These digital factories have an insatiable appetite for two things: land and power. While you may picture data centers near major cities, a new trend is pushing them into rural and suburban areas with access to a crucial resource: natural gas. This shift presents a significant opportunity to turn open land into a powerful source of long-term revenue.
This article will explore the rise of gas-powered data centers and what it means for landowners and real estate professionals. We will cover why tech giants are seeking land with natural gas access, how you can benefit from this demand, and the steps you can take to position your property for a lucrative lease or sale.
An Emerging Trend: Data Centers Powered by Natural Gas
Data centers are the backbone of AI and our digital economy, and their energy consumption is staggering. A single large data center can use more electricity than a small city. As the demand for artificial intelligence, cloud computing, and digital services grows, the need for reliable, scalable power has become the top priority for developers.
Traditionally, data centers have relied on the existing electrical grid. However, grids in many regions are already strained and can be slow and expensive to upgrade. This has led developers to seek alternative, on-site power solutions. Natural gas has emerged as a leading solution to power data centers for several key reasons:
Reliability: Natural gas provides a constant, uninterrupted power source, which is critical for data centers that must operate 24/7 without downtime. Unlike some renewable sources, it isn't dependent on weather conditions.
Scalability: On-site natural gas power plants can be built to the exact specifications of the data center and easily expanded as power needs grow.
Cost-Effectiveness: In many areas, natural gas is a more affordable and predictable energy source compared to purchasing electricity from a utility, especially at the scale data centers require.
Faster Deployment: Building an on-site gas power plant can often be faster than waiting for major utility upgrades, allowing tech companies to bring their data centers online more quickly.
This has created a new category of in-demand real estate: "powered land." This term refers to parcels that not only have the space for a large data center facility, but also have direct or easy access to natural gas infrastructure, driven by the immense power requirements of AI and cloud computing. Securing sufficient, reliable energy has become the primary bottleneck for data centers, making these utility-ready sites incredibly valuable.
Now is the time to put your property on the radar of industry leaders driving the data revolution. If you own powered land or simply want to see if a data center developer would be interested in your property, list your land or mineral rights for lease or for sale for free on LandApp to connect directly with developers, all with no obligations to accept any offers.
What Data Center Developers Look For
Data center developers and the tech giants they serve have a specific checklist when evaluating potential sites. If your property meets these criteria and qualifies for a data center, it could be highly valuable. In fact, data center developers are paying top dollar for suitable properties- up to 2 to 4 times market value or more in some cases.
1) Power Access
Data centers need power, and they need it fast. The most important factor that data center developers look for is access to reliable power, like close proximity to transmission lines and substations with available capacity, or access to high-pressure natural gas transmission pipelines. In terms of natural gas pipelines specifically, close proximity is key, as building long connector lines can be expensive and time-consuming. Land located directly adjacent to or with a clear right-of-way to a major pipeline is considered prime real estate for these projects. Developers will analyze pipeline capacity to ensure it can support the massive energy needs of a data center campus.
2) Large, Level Parcels
Data center campuses are expansive, often requiring 40 acres or more. Developers prefer large, contiguous parcels of relatively flat land. This simplifies construction and provides room for future expansion, security perimeters, and supporting infrastructure like cooling systems and the on-site power plant itself. Properties with minimal environmental concerns and straightforward zoning are also highly attractive. Land located near urban centers is also a plus, but developers also seek rural land for data centers.
3) Access to Other Infrastructure
Other infrastructure, like highway access, fiber optic networks, and water sources are also important for data center siting. Developers look for properties with good access to major highways for transporting construction materials and equipment. Access to fiber optic networks is also critical, as high-speed connectivity is the entire purpose of a data center. Finally, a nearby water source for cooling systems can be a valuable asset, though many modern designs are moving toward more efficient air-cooling methods.
Another emerging trend is co-locating data centers and renewable energy infrastructure, like solar farms and energy storage facilities on the same property. With the close proximity to renewable energy resources, data centers can achieve greater energy reliability and substantial cost savings. If you own land that is suitable for renewable energy or near renewable energy facilities, it could be highly desirable to a data center developer.
How Landowners and Realtors Can Capitalize on the Data Center and Powered Land Boom
The demand for gas-powered data center sites offers a unique opportunity for landowners and their representatives with the right kind of property. There are a few different ways that land deals can be structured, but the key to success is getting your property in front of the right people to generate competitive offers.
Data Center Land Deal Structures
Data center land deals can happen in a few different ways. Developers can lease land, lease mineral rights, or purchase properties outright.
Long-Term Leases: Many data center deals are structured as long-term ground leases, often spanning 20 to 50 years or more, with options to renew. For a landowner, this provides a steady, predictable income stream that is insulated from the volatility of agricultural markets or other land uses. These data center leases are typically with highly creditworthy tenants- some of the largest technology companies in the world, like Meta, Google, and Amazon- making them a very secure and reliable way to monetize land and put it to productive use.
Mineral Rights Leasing: If you own the mineral rights beneath your land (or someone else's), you have another avenue for opportunity. Data center developers may lease your mineral rights to secure access to the natural gas. This can be structured separately from a surface land lease, providing an additional layer of revenue. Even if the data center developer doesn't use your land's surface, they may pay to run a pipeline through it, creating income from easements.
Outright Sale: In most cases, data center developers prefer to purchase the land outright. Because of the specific and valuable combination of size and pipeline access, these properties can command premium prices. For a landowner looking to retire or liquidate assets, an offer from a data center developer can be a life-changing event. Realtors who can identify and market these properties stand to earn substantial commissions.
How Landowners Can Connect with Data Center Operators
The key to attracting these opportunities is visibility. Developers are actively searching for suitable sites, but they can't make an offer on a property they don't know exists. You need to put your land and its unique attributes in front of the right people. Listing your property or mineral rights for lease or for sale on a platform like LandApp that specializes in land and resource transactions is the most effective first step.
When creating a listing, be sure to highlight the specific features that data center developers value:
Total acreage and topography
Proximity to natural gas pipelines (mention the operator if known)
Details on mineral rights ownership
Access to roads, fiber, and water
Current zoning and land use
There are no fees, commissions, or obligations to accept any offers when you list land for sale or for lease for data centers on LandApp- just the opportunity to get premium prices from your property, directly from developers who need land. By clearly marketing your property's energy potential on LandApp, you move it from being just a piece of land to a strategic asset in the digital economy. Even if you're unsure if your property qualifies, we encourage you to make a listing anyway to see what happens!
