How to Buy Land for a Data Center
Buying land for a data center means balancing power, connectivity, risk, and room to grow. Start with a location that prioritizes close, robust electrical grids and multiple fiber routes to control build costs and ensure low-latency, resilient connectivity. Good road access streamlines equipment delivery and ongoing maintenance; proximity to airports or interstates can help, depending on your operations.
Site Requirements for a Data Center
Power
Power is a make-or-break factor. You’ll need capacity today and headroom for tomorrow, ideally with redundant feeds, on-site backup (UPS and generators), and access to renewables if you have sustainability targets. Electricity pricing and incentive structures vary widely; lower rates and green-energy programs can materially reduce operating costs.
Data Center Zoning
Confirm early that the property has proper zoning. Industrial or commercial zoning is typical, and you’ll need to meet local building codes covering structural standards, life safety, and security. Zoning can be tricky and costly to change, so ensuring that the property has no zoning issues can save time and money down the road. Some jurisdictions require environmental reviews before construction, so developers should plan time for that diligence.
Climate
Climate and environmental risk shape both design and cost. Cooler climates can trim cooling expenses, but whatever the region, ensure you can reliably manage temperature and humidity. Avoid floodplains and high-risk zones for earthquakes, hurricanes, or tornadoes, or budget for mitigation and insurance. If your cooling strategy depends on water, verify secure water rights and a dependable supply.
Long-term Planning for Data Center Expansion
With data centers, it’s important to think long-term. Choose parcels with space for phased expansion, like additional halls, substations, and cooling infrastructure, and confirm utilities can scale alongside your load and fiber demand. Multiple ISPs and diverse fiber paths reduce single points of failure and improve overall resilience.
Costs of a Data Center
Financial considerations extend beyond land price. Model property taxes, construction costs tied to site prep and utility extension, and any available tax credits, grants, or abatements for data-center investment or renewable usage. Incentives can turn a marginal site into a winner.
Sustainability now factors into site selection as much as performance. Favor locales that can integrate wind, solar, or clean-power PPAs, and quantify how those sources and the climate reduce PUE over time.
Overall, buyers should prioritize reliable, scalable power; diverse fiber; manageable climate and environmental risk; security; and future expansion capacity. The right parcel for a data center supports efficient, secure operations today and cost-effective growth tomorrow. If you’ve got questions about finding land for a data center, get in touch with me directly at Csmith@NationalLand.com or contact your local Land Professional!