For Landowners
What is powered land worth to a data center developer?
There is no standard $/acre price for data center land. Value is driven almost entirely by power — its availability, proximity, and deliverability. Here is the framework that buyers use, and what it means for your parcel.
The primary driver: available power
A data center consumes 20–200 MW of continuous power. The most important question a buyer asks is: “Can I get that power, how quickly, and at what cost?” Everything else — acreage, zoning, location — is secondary.
Land within 2 miles of a 230kV+ substation with available capacity typically commands a significant premium. Land 15 miles from the nearest 69kV line may not be financeable as a standalone data center site at all.
Value factors, in order of importance
MW available at the nearest substation without requiring new transmission. Queued interconnection reduces value significantly.
Under 1 mile = highest value. 1–5 miles = good. 5–10 miles = feasible with investment. Over 10 miles = typically requires new transmission.
500kV lines serve the largest buyers. 230kV works for most projects. 115kV supports smaller builds. Under 115kV limits options.
Hyperscalers want 200–2,000+ contiguous acres for multi-phase development. Smaller parcels work for colo developers at 50–150 acres.
Evaporative cooling uses 1–3 million gallons/day per 100 MW. Industrial water rights or proximity to a water source meaningfully affects value.
Pre-zoned industrial or heavy commercial land transacts at a premium. Agricultural land has re-zoning risk that buyers price in.
Within 10 miles of a fiber backbone. Hyperscaler campuses require multi-100G diverse fiber paths.
Texas, Carolinas, Pacific Northwest, Ontario, and Alberta are current priority markets for most buyers.
Sell vs. ground lease vs. joint venture
Sell outright: Clean exit, immediate liquidity. Typical for sellers who want certainty and no ongoing involvement. Buyers typically pay a premium over agricultural value but below what the finished facility will support.
Ground lease: You retain ownership and receive an annual ground rent (typically $2,000–$8,000/acre/year, indexed to CPI) for 30–99 years. Upside is retained land value appreciation; risk is counterparty creditworthiness and lease complexity.
Joint venture: You contribute the land; the developer contributes capital and expertise. You participate in project upside. Higher complexity, longer timeline, and more negotiation, but highest potential return for well-located parcels.
How long does it take?
A straightforward land sale — good power, clean title, willing seller — can close in 90–180 days from first contact. Projects requiring new transmission interconnection, re-zoning, or environmental remediation routinely take 2–4 years from site selection to groundbreaking.
Konative stages the process to protect your time: we run our analysis first, bring you qualified buyers who have already reviewed the basics, and only ask for your time when there is genuine interest.
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