The data center industry is experiencing one of its most transformative moments. Global capacity is expected to triple by 2030, with AI workloads alone projected to increase power demand by 30–50% in the next five years. For developers, this surge is less about finding land and more about securing the right land. Those are sites with scalable power, fiber connectivity, and zoning certainty that can withstand tomorrow’s demand.
Power and Infrastructure: The Critical Bottleneck
According to McKinsey, the U.S. will need 35 gigawatts of new data center capacity by 2030. That’s more than double today’s total. Yet interconnection queues are already backed up, with some regions facing wait times of 5–10 years for new power. For developers, that means land without immediate or scalable power isn’t just a challenge, it’s a non-starter.
Balancing Location and Latency
Hyperscalers and cloud providers are pushing for ever-lower latency. The ideal sites are near metro hubs yet large enough for scale. But land near Tier 1 markets has become scarce, with average asking rents for data center space up more than 15% year-over-year (CBRE). Developers are often caught between high costs in primary markets and limited infrastructure in secondary ones.
Permitting, Compliance, and Speed to Market
Permitting remains one of the most significant risks. Environmental reviews, wetlands, cultural assessments, and community pushback can stall projects for years. In some regions, local moratoriums on data center development are adding even more uncertainty. For operators under pressure to meet client contracts, shaving even a few months off the permitting timeline can have a direct impact on competitiveness.
Planning for Scalability
AI workloads are projected to quadruple global data traffic by 2027. Developers who secure sites with phased development potential and modular scalability will be best positioned to keep up. Land that accommodates both immediate demand and long-term expansion is now considered a strategic advantage.
Partnering for What’s Next
Industry leaders already know the stakes: reliable power, robust fiber, zoning certainty, and expansion potential. The challenge is aligning all those requirements within the same site while managing negotiations, permitting, and compliance without slowing down development.
That’s where partners like Vanguard Real Estate Solutions come in. We don’t tell developers what they already know. We help manage the details that keep projects moving. By bringing local insight, regulatory expertise, and national reach, we ensure your sites aren’t just viable today, but ready to grow with tomorrow’s demand.
Let’s start identifying high-potential land today!