How much does powered land cost per acre?

In secondary markets powered land typically prices in the low-to-mid six figures per acre, while Northern Virginia powered land trades at $6 million+ per acre (versus about $4 million for entitled land without power). Power is what moves the number: ground worth about $10,000 an acre without a credible power path can reach six figures per acre once capacity and the utility relationship are secured.

How long does it take to get power to a data center site?

About 4 years on average for a new large-load grid connection in 2026, versus 12–18 months before 2022. Constrained markets such as Northern Virginia run up to ~7 years for 100 MW, while sites with an existing substation or in emerging markets can be energized in 12–24 months.

What does a data center cost per MW to build?

Roughly $10 million to $15 million per MW of critical IT load all-in for most U.S. projects in 2026, and more for liquid-cooled AI halls. JLL puts the 2026 global average at $11.3 million per MW, and Cushman & Wakefield's August 2026 cost guide shows per-MW costs up about 21% since late 2024.

What Are Data Center Land Requirements? Acreage, Power & Specs

Q: What is the difference between available power and requested power?

Available power is capacity that is energized or contracted today — documented in a signed service agreement or a utility will-serve letter with a stated megawatt figure and date. Requested power is capacity someone has applied for or is studying in a queue; it is a possibility, not an asset, until the utility commits to it in writing. Buyers pay powered-land prices only for the available figure.

Quick Answers

What Does a Data Center Site Need — and What Is It Worth?

How much power does a data center need?: 10–50 MW for colocation and enterprise facilities, 100 MW per hyperscale building or phase, and 500 MW to 1 GW+ for AI campuses. AI racks draw 40–130 kW each, versus 5–10 kW for a traditional rack.
How much does powered land cost per acre?: In secondary markets powered land typically prices in the low-to-mid six figures per acre, while Northern Virginia powered land trades at $6 million+ per acre (versus about $4 million for entitled land without power). Power is what moves the number: ground worth about $10,000 an acre without a credible power path can reach six figures per acre once capacity and the utility relationship are secured. See how data center land is valued.
How long does it take to get power to a data center site?: About 4 years on average for a new large-load grid connection in 2026, versus 12–18 months before 2022. Constrained markets such as Northern Virginia run up to ~7 years for 100 MW, while sites with an existing substation or in emerging markets can be energized in 12–24 months.
What does a data center cost per MW to build?: Roughly $10 million to $15 million per MW of critical IT load all-in for most U.S. projects in 2026, and more for liquid-cooled AI halls. JLL puts the 2026 global average at $11.3 million per MW, and Cushman & Wakefield's August 2026 cost guide shows per-MW costs up about 21% since late 2024.
Is Tennessee a good place to build a data center?: Yes — TVA power, water, central geography and a deep stock of industrial land make Tennessee one of the strongest Southeast markets, led by Memphis. TVA's board approved a dedicated data center rate on August 20, 2026 (about a 10% average increase phased in over three years, plus upfront capacity-commitment charges), which makes capacity that is already contracted and energized more valuable.
What does a real powered site look like?: A ±49-acre North Memphis campus with 4.5 MW contracted today, a path to 15 MW on Substation 1 and up to 35 MW across two on-site substations (subject to MLGW/TVA confirmation). Data center use is permitted by right, and it is offered as an unpriced call for offers.

Figures as of October 2026. Sources: JLL 2026 forecast via Datacentres.com; Cushman & Wakefield 2026 Data Center Development Cost Guide; Avison Young via TechTarget (Oct 9, 2026); JLL time-to-power data via ConstructionOwners (Jul 2026); TVA data center rate (Aug 2026). Ranges vary by market, design and timing — verify for a specific site.

What a Data Center Site Actually Needs

What Are the Land Requirements for a Data Center?

A parcel that passes the power test still has to clear a long list of physical, regulatory, and economic checks before it can host a data center. Here is the full requirement set, factor by factor — led, always, by power.

How Much Power Does a Data Center Site Need?

Short answer: 10–50 MW for colocation and enterprise facilities, 100 MW per hyperscale building or phase, and 500 MW to 1 GW+ for AI campuses. AI racks draw 40–130 kW each, versus 5–10 kW for a traditional rack. A site without a credible, dated path to that power is not a data center site at any price.

Everything starts with electricity. Before acreage or zoning, a developer asks how close high-voltage transmission and a substation with available capacity are, what the serving utility can deliver, and on what timeline. A site without a credible path to power is not a data center site at any price. Proximity to transmission and an existing or buildable substation, plus a reasonable interconnection timeline, is the gating requirement. See How Much Power Does a Data Center Need? and Powered Land for Data Centers.

How Many Acres Does a Data Center Need?

Short answer: About 20–50 acres for a single large building and 100–1,000+ acres for a multi-phase hyperscale campus. Contiguous tracts with no roads or easements cutting through them are worth far more than the same acreage in pieces.

Data centers need room for the buildings, generators and cooling plant, substations and switchyards, security setbacks, and future phases. A single large building might sit on 20–50 acres; a multi-phase hyperscale campus can absorb 200–1,000+ acres. Contiguity matters: large, unbroken tracts are far more valuable than the same acreage split by roads, easements, or separate parcels.

How Many Acres per Megawatt Does a Data Center Need?

Short answer: Plan on roughly 0.5 to 1.5 acres per MW of IT load for a full campus, about 1 acre per MW as a working rule. Small sites run higher per megawatt because the substation, setbacks and parking don't shrink with the building; dense multi-story designs in land-constrained markets can run well below the range.

Data center land needed by megawatt (planning ranges, total campus)
IT load	Typical project	Land needed	Acres per MW
5 MW	Edge or enterprise building	5–15 acres	1–3 ac/MW
10 MW	Small colocation or enterprise	10–25 acres	1–2.5 ac/MW
25 MW	Single colocation building	15–40 acres	0.6–1.6 ac/MW
50 MW	Large single building or two-building site	25–75 acres	0.5–1.5 ac/MW
100 MW	Hyperscale building or first phase	40–120 acres	0.4–1.2 ac/MW
250 MW	Multi-building hyperscale campus	150–350 acres	0.6–1.4 ac/MW
500 MW	AI training campus	300–700 acres	0.6–1.4 ac/MW
1 GW+	Gigawatt AI campus	700–1,500+ acres per GW	0.7–1.5 ac/MW

Real campuses land inside these ranges: Crusoe's Stargate campus in Abilene, Texas covers about 1,100 acres for 1.2 GW (~0.9 ac/MW); Meta's Hyperion campus in Louisiana is approaching 4,000 acres for up to 5 GW (~0.8 ac/MW); and the North Memphis powered campus is ±49 acres for up to 35 MW (~1.4 ac/MW). Ranges assume single- or two-story buildings with on-site substation, generators, cooling, security setbacks and stormwater; actual need depends on density, cooling design, local setbacks and how much expansion land a buyer wants. Sources: Data Center Map (Abilene); TechRadar (Hyperion acreage); DatacenterDynamics (Hyperion 5 GW).

What Topography and Soils Work for a Data Center?

Short answer: Flat to gently sloping, well-drained ground with solid geotechnical conditions. Steep slopes, rock and poor soils add grading and foundation cost and can make part of a site unusable.

Flat to gently sloping, well-drained land is ideal. It minimizes grading, earthwork, and foundation costs and allows efficient building pads and equipment yards. Steep slopes, rock, and irregular terrain raise costs and can sterilize portions of a site, so geotechnical conditions are checked early.

Can a Data Center Be Built in a Flood Zone?

Short answer: Generally no: FEMA floodways and 100-year (1%-annual-chance) flood zones are usually disqualifying for building pads. Even partial flood exposure complicates insurance, financing and tenant approval.

Data centers are mission-critical and cannot tolerate flooding. Sites in FEMA floodways or high-risk flood zones are heavily disfavored; even partial flood exposure complicates insurance, financing, and tenant approval. Clean, well-drained ground above flood risk is a baseline requirement.

Does Contamination Rule Out a Data Center Site?

Short answer: Not automatically — a Phase I environmental assessment is standard, with a Phase II where the Phase I flags a concern. On brownfields, the same industrial history that brought power can bring cleanup obligations, which buyers price rather than ignore.

Contamination, wetlands, endangered-species habitat, and historical or archaeological constraints can all delay or block development. Phase I and, where warranted, Phase II environmental assessments are standard. On brownfields this cuts both ways — the industrial history that delivers power can also bring remediation obligations.

What Fiber and Water Does a Data Center Need?

Short answer: Long-haul fiber from at least two carriers on diverse routes, and — for water-cooled designs — a reliable supply plus the legal right to use it. Natural gas and sewer increasingly matter too, especially where on-site generation is planned.

A data center is useless without connectivity, so proximity to long-haul fiber and multiple carriers matters. Many cooling designs consume significant water, so access to municipal water, wells, or surface water — and the legal right to use it — can be decisive. Beyond electricity, sites need gas (increasingly for on-site generation), sewer, and telecom, with the cost of extending services factored into feasibility.

What Zoning and Incentives Does a Data Center Need?

Short answer: Industrial or data-center zoning with the use allowed by right, ideally in a jurisdiction that offers sales-tax exemptions on equipment and property-tax abatements. Entitlement certainty is worth real money to a buyer.

Construction is labor-intensive, so regions with deep trade-labor pools build faster and cheaper. States and localities compete with sales-tax exemptions on equipment and property-tax abatements that can swing project economics. And the right zoning — industrial or a data center designation — plus a cooperative local government dramatically de-risks a project. Entitlement certainty has real value.

What Are Data Center Land Requirements at a Glance?

Developers want transmission and substation capacity with near-term interconnection, large contiguous acreage, flat well-drained ground with good soils, land outside FEMA floodways, long-haul fiber from multiple carriers, water supply and rights for cooling, and industrial or data center zoning. Power sits at the top of the funnel and eliminates most parcels immediately.

Factor	What developers want
Power	Transmission + substation capacity, near-term interconnection
Acreage	Large, contiguous; 20–50 ac building, 100–1,000+ ac campus
Topography	Flat, well-drained, good soils
Flood	Outside FEMA floodway / high-risk zones
Fiber	Long-haul routes, multiple carriers
Water	Supply + rights for cooling
Zoning	Industrial / data center, low entitlement risk

Think of site selection as a funnel: power sits at the top and eliminates most parcels immediately; survivors are ranked on the factors above. For how developers score them, see Data Center Site Selection.

For Landowners

Thinking About Selling Your Land for a Data Center?

Data center land is not ordinary land — and selling it isn't an ordinary real estate transaction.

Across the country, more farmers and landowners are approaching technology companies, developers and utilities directly because they believe their property could support a data center. The problem is that many properties are being presented without the information sophisticated buyers actually need.

A large tract of land and a nearby transmission line aren't enough. Before serious data center developers can evaluate a site, they may need answers to questions involving:

Power capacity and deliverability — not simply how much power appears to be nearby
Utility documentation — substations, transmission voltage, available capacity, upgrade requirements, timelines and potential costs
Fiber connectivity and redundancy
Water and wastewater availability
Natural gas infrastructure
Zoning, entitlements and permitted uses
Environmental and geotechnical conditions
Access, transportation and site configuration
Local and state incentives
Community and political support

For how developers price land once those answers are known — per acre versus per megawatt, option and offer terms, and selling versus leasing — see What Is My Land Worth to a Data Center?

The Wrong Introduction Can Hurt the Opportunity

Technology companies and data center developers are being approached by landowners across the country. Sending an address, acreage and asking price isn't enough.

A property needs to be presented with the technical information buyers need to determine whether the site deserves further investigation. Just as important, someone needs to know which questions to ask the utility, municipality, economic development officials and prospective buyer.

Power Requires More Than a Utility Bill

One of the biggest mistakes landowners make is assuming that because transmission infrastructure or a substation is nearby, significant power is available. It may not be.

Understanding a potential data center site can require conversations with the utility, engineers and other stakeholders to determine what infrastructure exists, what documentation is available, what upgrades may be necessary, how long those upgrades could take and who could ultimately bear those costs. Those answers can dramatically affect a property's value and marketability.

City Hall Matters Too

A data center development can involve more than a buyer and seller. Depending on the location and project, discussions may involve city councils, county officials, planning departments, utilities, economic development organizations and state agencies.

How the project is introduced to those stakeholders matters. Landowners need someone who can help coordinate the conversations between the property owner, buyer, utility and local government rather than leaving each party to figure it out independently.

Don't Just Market the Land. Position the Site.

The goal isn't simply to find someone willing to buy acreage. It's to understand what the property can realistically support, assemble the information sophisticated buyers need, identify the right groups and create competition around a properly positioned site.

If you own farmland, industrial property or a large tract that you believe could support a data center, talk with us before approaching technology companies on your own.

Carson Jones | Passive Investments
Data Center & Commercial Real Estate

Call 615-212-5524 Email Carson

Frequently Asked Questions about Data Center Land Requirements

How many acres per megawatt does a data center need?

Plan on roughly 0.5 to 1.5 acres per MW of IT load for a full campus, about 1 acre per MW as a working rule. A 100 MW campus typically needs 40–120 acres and a 1 GW AI campus 700–1,500+ acres. Crusoe's 1.2 GW Abilene campus covers about 1,100 acres (~0.9 ac/MW).

How much land does a 100 MW data center require?

It varies with design and density, but a 100 MW facility might occupy roughly 20 to over 100 acres, accounting for buildings, substation, generators, cooling plant, security setbacks, and room for expansion. Lower-density designs use more land; dense, multi-story designs use less.

How many acres does a hyperscale campus need?

Hyperscale campuses commonly assemble 100 to 1,000 or more acres to accommodate multiple large buildings, on-site substations and possibly generation, cooling, setbacks, and future phases. Large contiguous tracts are strongly preferred.

Can a data center be built in a flood zone?

It is strongly disfavored. Data centers are mission-critical and cannot tolerate flooding, so FEMA floodways and high-risk flood zones are generally disqualifying. Even partial flood exposure complicates insurance, financing, and tenant approval.

What zoning do data centers need?

Typically industrial zoning or a purpose-built data center designation. Sites already appropriately zoned, in cooperative jurisdictions, are worth more than those needing rezoning, variances, or contentious public hearings.

How close does land need to be to transmission lines?

Closer is better and cheaper. Every mile of new high-voltage line adds cost, time, and permitting risk. Sites adjacent to or very near high-capacity transmission and a substation have a far shorter, cheaper path to large power.

What is the difference between available power and requested power?

Available power is capacity that is energized or contracted today — documented in a signed service agreement or a utility will-serve letter with a stated megawatt figure and date. Requested power is capacity someone has applied for or is studying in a queue; it is a possibility, not an asset, until the utility commits to it in writing. Buyers pay powered-land prices only for the available figure.

What utility documentation should a landowner gather?

Any correspondence with the serving utility about load service, a load or facilities study if one exists, a will-serve letter or service agreement stating megawatts and an in-service date, the distance to the nearest transmission line and substation, and any upgrade cost estimate. If none exist yet, say so — an honest 'requested' is worth more to a buyer than an unsupported claim.

How much of my acreage counts as buildable?

Only the net usable acres. Subtract floodplain (check FEMA flood maps), wetlands, steep slopes, setbacks, transmission and pipeline easements, and any contaminated areas. Buyers size the project on the net figure at roughly 0.5 to 1.5 acres per MW of IT load, so a 200-acre tract with 90 buildable acres supports roughly a 60–180 MW campus, not 400 MW.

Do developers pay for land per acre or per megawatt?

Per megawatt when the site has documented, near-term power; per acre otherwise. That is why the same acreage can price at farmland value without a power path and at powered-land values once the utility commits capacity in writing.

How do buyers underwrite a land site against these requirements?

They check each requirement in order of cost and time to fix: power first (megawatts, date, upgrade cost), then zoning, buildable acreage, fiber, water, flood and environmental condition. Each gap becomes either a price reduction, a longer option period, or a reason to pass.

Wondering if your land qualifies?

Carson Jones can give you a straight read on whether your site can be powered and what it may be worth for data center use. Get a confidential site read or visit Passive Investments.

Educational information only — not legal, tax, engineering, or investment advice.

Sources

Figures described as working figures are this guide's own estimates; confirm megawatts, dates and costs for a specific site in writing with the serving utility.

Work With Carson

Selling or buying commercial property? Let's talk.

Brokerage and equity participation for commercial real estate owners, investors, and family offices — worldwide, through the eXp Commercial platform.

Email Carson Call 615-212-5524 Text Carson

Carson Jones

Founder · Passive Investments · eXp Commercial

Carson Jones is the host of Carson's Corner: Commercial Real Estate, author of The Red Flag Playbook, a licensed commercial real estate advisor and business broker, and the founder of Passive Investments. With 18 years of experience as an entrepreneur and 12 years specializing in passive investing, Carson works with high-net-worth individuals, family offices, business owners, and sophisticated investors as a broker and principal.

Carson holds a BBA in Finance from Baylor University and his Tennessee commercial real estate license (#382989). He actively pursues acquisition and equity opportunities across the United States and abroad through a worldwide network of qualified buyers, family offices, institutional investors, and top-tier developers.

This article is for informational and educational purposes only and should not be considered tax, legal, accounting, or investment advice. Tax laws are complex and change frequently. Always consult your CPA, attorney, and financial advisor before making any financial, tax, or investment decisions. All investments and property ownership carry risk, including the potential loss of principal. Carson Jones, Passive Investments, and the author make no guarantees regarding the tax treatment, performance, or outcome of any specific investment strategy described in this article.

Pricing disclaimer. The $300,000–$600,000 per-MW figures used on this page are an illustrative pricing range, not a guaranteed valuation. Actual pricing depends heavily on confirmed power capacity, delivery timelines, utility costs, location, and development readiness.