Part 1: Why Power Now Leads Data Center Site Search Strategy

The priorities of data center site selection have shifted dramatically. Where once the focus was on affordable land and minimal disaster risk, one question now dominates the conversation:

Is there enough power?

Contents

Why Power is Now the #1 Factor in Data Center Site Selection

Legacy Hubs are Gridlocked

Emerging Markets With Scalable Power are the New Data Center Hotspots

The Interconnection Bottleneck

Rethinking Power Strategy

How Land Intelligence Accelerates Power-Ready Site Selection

Why Power Is Now the #1 Factor in Data Center Site Selection

As cloud computing and AI infrastructure scale, data center power demand has become the defining constraint. 

IEA’s Energy and AI report projects “the US economy is set to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined,” driven by AI use. These numbers are only expected to grow.

It’s no longer just about racks and servers, it’s about securing consistent, high-capacity energy sources to fuel entire campuses. Without robust, scalable power access, sites will struggle to meet the increasing needs of modern data centers.

Legacy data center markets like Northern Virginia or Silicon Valley were built on strong connectivity and talent pools. But these advantages are now outweighed by a critical flaw: strained local grids.

Lengthy interconnection delays, sometimes stretching for years, are increasingly common. For companies racing to deploy AI infrastructure, these holdups are dealbreakers. The result? A growing pivot toward regions with untapped, scalable power potential.

Emerging Markets With Scalable Power Are the New Data Center Hotspots

With traditional hubs maxed out, new markets are stepping into the spotlight. Areas once seen as “secondary” are now top contenders—thanks to underutilized grid infrastructure and faster access to scalable power.

This shift creates opportunity:

• For landowners: to command premium pricing.
  
  
• For municipalities: to attract tech investment.
  
  
• For developers: to build faster in power-ready zones.

Interconnection delays are among the most critical hurdles in today’s site development process. Even in well-equipped regions, the time it takes to energize a site can determine whether a project moves forward—or falls apart.

Successfully navigating these constraints often comes down to how early and effectively developers engage with utility providers. In power-ready areas where delays still linger, the key is planning for interconnection timelines from day one.

Rethinking Power Strategy

What’s next isn’t just about access, it’s about rethinking how we generate, distribute, and manage power for the long term.

Grid Partnerships Will Deepen

Expect utilities and developers to collaborate earlier in the site vetting process. Power planning will be proactive—not reactive.

On-Site and Alternative Energy Will Grow

While still emerging, technologies like solar, battery storage, and microgrids are gaining traction as resilience tools during peak loads and delays.

Efficiency Will Become a Differentiator

As power becomes scarcer and costlier, energy optimization (e.g., performance-per-watt) will become a core competitive edge.

Policy May Reshape Strategy

From tax incentives to emissions regulations, public policy will increasingly shape site viability. Staying ahead of these changes is essential for long-term growth.

How Land Intelligence Accelerates Power-Ready Site Selection

While competition for power-ready land heats up, fast diligence and complete data is your moat. Gain a full view of the market and the grid, plus tools for speedy diligence and portfolio management with Acres.com.

• Forecast Business Impact: Track market signals before they disrupt the grid and your strategy.

• Stay Aligned and Deal Ready: Track, label, and share deals across your team in real-time.

• Streamline Diligence: Move first on prime opportunities and eliminate dead-end sites early.

• Strategic Search: Track where the hyperscalers go (e.g. say Meta moves into a new submarket, with Acres, you can evaluate nearby land to follow market growth).

• Visualize Power Infrastructure: Visualize power and energy, nuclear plants, power plants, retired power plants, and more.

• Evaluate Sales Comps: View transactions through the Data Center Index.

Final Thoughts

The future of data centers hinges on one thing: power.

For professionals navigating this high-stakes, fast-paced industry, understanding the energy potential of any parcel is critical. Without it, even the best-located site falls short. 

When every minute counts, having the right intelligence at your fingertips can make all the difference. Connect with our sales team to get started today.