Power: the single most important factor
A data center is, at its core, a building that converts electricity into computing. Power access determines everything. Developers need proximity to high-voltage substations (138kV, 230kV, or 345kV) with spare capacity. The closer the better.
Under 1 mile from a substation is ideal. Under 5 miles is workable. Over 20 miles is generally a dealbreaker because the cost and timeline to extend transmission lines makes the project uneconomical. A single data center campus can draw 100-500+ megawatts, which is why substation capacity matters as much as distance.
In Loudoun County, Virginia, one of the reasons land commands $6.3 million per acre (Data Center Dynamics) is the dense network of high-capacity substations. Dominion Energy even purchased part of a recent land deal specifically to build a new substation, because the power demand is so enormous.
Acreage: bigger is better
The average data center land parcel purchased in 2024 was 224 acres, up 144% from 2022 (Cushman & Wakefield). This reflects the industry's shift toward hyperscale campuses that allow phased construction over a decade or more.
That said, not every deal is for 200+ acres. A minimum of 20 acres can support a small facility. 50-100 acres works for a mid-size campus. But larger parcels consistently command higher per-acre prices because they give developers room to grow without needing additional land acquisitions.
Disaster risk: flood zones and seismic data
Data centers represent billions of dollars in infrastructure investment. Developers avoid areas with elevated natural hazard risk. FEMA flood zone X (minimal risk) is strongly preferred. Zones A, AE, or V (moderate to high flood risk) significantly reduce a property's attractiveness.
Seismic risk is evaluated using USGS hazard data. Properties in low-seismic regions score higher. Both datasets are publicly available and are exactly what DataAcre checks when scoring your property.
Water, zoning, and fiber
Water: Data centers use significant water for cooling systems. On-site water rights, municipal connections, or well water access all add value. Properties without water access require developers to negotiate water supply, adding cost and timeline.
Zoning: Industrial zoning is ideal. Agricultural zoning is the most common starting point and can usually be rezoned. Commercial zoning works. Residential zoning is the hardest path. In many rural counties, the data center itself becomes the political argument for rezoning, because of the tax revenue and jobs it brings.
Fiber: Proximity to fiber-optic backbone routes matters. Within 1 mile is excellent, within 5 miles is workable. This is less of a dealbreaker than power because fiber can be extended at lower cost, but it affects the project timeline.
Does your land meet these requirements?
The easiest way to find out is to use DataAcre's free property analysis tool. Enter your address and basic details. We check your land against all of these requirements using real data from FEMA, USGS, and power grid databases. Results come back in under 2 minutes.
FAQ
What is the minimum acreage for a data center?
A small facility can fit on 20 acres. The average parcel purchased in 2024 was 224 acres (Cushman & Wakefield), reflecting the industry shift toward campus-scale developments that can expand over time.
How close to a substation does data center land need to be?
Within 5 miles is generally the threshold. Under 1 mile is ideal and commands the highest prices. Power delivery infrastructure is the most expensive and time-consuming element to build, so proximity to existing substations is critical.
Can residential zoned land be used for a data center?
It is possible but difficult. Rezoning from residential to industrial takes longer and faces more community opposition. Agricultural and industrial zoned land is strongly preferred.