Listing Land for Data Centers: A Guide for Landowners
- Craig Kaiser
- 1 day ago
- 5 min read
The digital world is built on a physical foundation: data centers. As cloud computing, artificial intelligence, and our reliance on digital services expand, the demand for these powerful facilities is surging. For landowners with the right kind of property, this presents a unique and lucrative opportunity. Listing your land for data center development can transform an underutilized asset into a significant source of long-term revenue.
This guide will walk you through the process, from understanding what developers look for to reaping the financial rewards. We will cover the key site requirements and how you can list your land for data centers to start attracting developer interest.
LandApp's marketplace allows landowners to list their land for data centers with no fees, commissions, or obligations to accept offers. On LandApp, you can connect directly with major hyperscale developers, tech companies, investment firms, and consultants actively seeking suitable land for their next project, giving you the chance to receive top dollar for your property.
Why the Demand for Data Center Land is Skyrocketing
Digital transformation is not just a buzzword; it's a fundamental shift in how we live and work. Every video we stream, every file we save to the cloud, and every online transaction we make relies on a data center somewhere in the world. This endless hunger for data has created a construction boom.
The data center industry is projected to grow exponentially over the next decade due to several key factors. The artificial intelligence boom has created unprecedented computational needs, with training large language models and running AI applications requiring massive server farms that consume enormous amounts of power and space. Additionally, as applications demand lower latency, edge computing requires data centers to be distributed closer to end-users, creating demand for land in previously overlooked markets. Digital transformation is also driving the need for more data center capacity as businesses across all industries migrate to cloud-based solutions. Finally, the deployment of 5G networks requires extensive edge computing infrastructure, creating new opportunities for smaller data center facilities.
Developers are actively searching for suitable locations to build the next generation of data centers. These are not typical real estate projects. They require specific, and often extensive, site characteristics, making the right piece of land a highly valuable commodity. Landowners who understand these needs can position their property as an ideal solution, opening up the chance to receive top dollar for their properties.
What Makes Land Suitable for a Data Center?
A major challenge in data center development is securing land with robust infrastructure. Hyperscale data centers demand vast amounts of electricity and connectivity. Even before AI, data center providers struggled to secure sufficient power. With AI's exponential data processing needs, finding suitable land with ample power capacity is an even greater hurdle.
Data center developers have a detailed checklist when evaluating potential land parcels. If your property meets these criteria and qualifies for a data center, you could be sitting on a prime asset.
1) Location and Accessibility
Proximity to urban centers can be beneficial, but it's not always necessary- in fact, many developers are now building data centers on rural land. Generally, developers prioritize sites that are easily accessible via major transportation routes for construction and ongoing maintenance. However, they also look for locations that are secure and at low risk from natural disasters like floods, earthquakes, or tornadoes. A site in a geographically stable area is far more attractive.
2) Power & Fiber Infrastructure
Close proximity to energy infrastructure (transmission lines & substations) and fiber lines is the most critical factor for data center site selection. Without adequate infrastructure, a piece of land is simply not viable for a data center.
Reliable Power: Data centers consume enormous amounts of electricity. Developers need access to high-voltage power lines and a reliable, redundant power grid. Proximity to a major electrical substation is a massive advantage. The ability to draw power from multiple sources helps ensure the uninterrupted operation that is essential for these facilities.
Fiber Optic Connectivity: High-speed data transfer is the entire point of a data center. Your land must be near existing fiber optic networks. Developers will assess the number of available carriers and the diversity of the fiber routes to prevent a single point of failure.
Water Access: While not all data centers use water for cooling, many modern designs do. Access to a consistent and affordable water supply for cooling systems can be a significant selling point. Similarly, having adequate water and sewer capacity for daily operations is a must.
3) Zoning and Permitting
Navigating local regulations can be a major hurdle for developers. A property that is already zoned for industrial or commercial use, or where local authorities are supportive of data center development, is highly desirable.
4) Environmental Factors
A thorough environmental site assessment is a standard part of the due diligence process. Developers will check for any groundwater or soil contamination that could lead to costly remediation. Properties with a clean environmental history are preferred. Additionally, the site's topography matters; a flat, easily gradable parcel of land will reduce construction costs and timelines.
Most data center projects require 10-100+ acres of relatively flat, developable land. Sites should have good drainage and stable soil conditions. Brownfield sites with existing industrial infrastructure can be particularly attractive due to existing utility connections.
How Much are Data Centers Paying for Land?
Data center developers are paying premium prices for properties that check their boxes- sometimes up to 2 to 4 times market value. In fact, according to Cushman & Wakefield, prices for parcels 50 acres or larger have surged by 23% since 2023.
Several key factors influence data center land costs. Power availability is the most critical, with land near reliable power sources commanding premium prices. Location also plays a significant role; established hot markets like Northern Virginia may see industrial land prices exceed $4 million per acre, while developers are increasingly looking to emerging and tertiary markets. Parcel size is another important consideration, as developers are seeking larger parcels, averaging 224 acres in 2024, to build multi-building campuses for future expansion. Finally, site specifics such as zoning for data centers, environmental considerations, and permitting ease also influence land value.
List Land for Data Centers
The data center land market is competitive, but with the right approach, landowners can capitalize on this digital infrastructure boom. Success requires understanding developer needs, properly positioning your property, and connecting with the right buyers. One way that landowners can connect with data center developers is to list their land for data centers on LandApp's marketplace- there are no fees, commissions, or obligations to accept any offers. LandApp's network includes major hyperscale data center developers, top tech companies, infrastructure investment firms, and development consultants.
Ready to explore the potential of your land for data center development? List your property on LandApp today and connect directly with qualified data center developers actively searching for suitable sites.
