- Developers and investors are aggressively targeting “powered land”—sites with secured energy and permits—for future data center development.
- A new report from Hines estimates 40K acres of powered land will be needed in the next five years, nearly double the current supply.
- With power access now a premium commodity, traditional real estate players are pivoting to infrastructure-first strategies to support AI-driven growth.
The Rise Of Powered Land
As AI and data center demand surges, real estate is being reshaped by a new kind of commodity: energy-ready land, reports CNBC. Dubbed powered land, these sites are prepped with critical infrastructure and utility commitments. They also come with the necessary entitlements. Together, these elements make it possible to bring megawatts online before a data center is ever built.
A new research paper from global real estate investment firm Hines highlights the growing demand for powered land. It estimates that about 40K acres—nearly 2B SF—will be needed globally over the next five years to support projected data center growth. That’s nearly triple the amount currently supporting operational data centers.
Not Just Buildings—Megawatts
“The challenge isn’t building walls anymore. It’s getting megawatts to the site,” said Hines CIO David Steinbach. Hines, which has built data centers for over 20 years, has shifted its strategy toward securing energy access as its primary value driver.
The company is now entitling hyperscale sites to secure power before development begins. This includes mapping electrical grids, negotiating with landowners, and providing financial guarantees to utility providers to ensure a reliable energy supply.
That front-end work has effectively turned powered land into its own investable asset class, with demand coming from hyperscalers, operators, and energy companies.
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Tech Meets Real Estate
This shift is drawing not only developers but also tech-heavy private equity firms. In August, Silver Lake and Commonwealth Asset Management launched a $400M platform. The initiative focuses on assembling powered land portfolios across the US, Canada, and the UK.
“Our innovative approach to land and power solutions… will enable us to meet the evolving demands of hyperscalers,” said Silver Lake’s Lee Wittlinger.
The idea is simple: with AI growth outpacing the grid’s ability to support it, energy access becomes the scarce resource—and land that secures it becomes the prize.
New Growth Frontiers
Traditional data center hubs like Northern Virginia have reached their grid capacity limits. This is pushing expansion into power-rich regions such as Texas and the Midwest. Hines also sees strong opportunities in Europe and the Middle East, where investments in energy infrastructure and AI are accelerating.
Still, hurdles remain. These include permitting, entitlements, and complex utility negotiations. However, the payoff is clear—early movers in powered land could control the next generation of digital infrastructure.
Why It Matters
Powered land is quickly becoming the foundation of AI infrastructure. As computation becomes the new commodity, power delivery is becoming the key differentiator. Developers who can provide energy—not just buildings—are positioned to shape the next real estate cycle.
“This isn’t just a tech story,” said Steinbach. “It’s a building cycle story reshaping how and where the real estate business develops for decades to come.”
