Why farmland is in demand
Farmland has always had value, but the buyer pool has changed. In the past decade, a new category of buyer has emerged that pays far more than neighboring farmers or residential developers: data center companies.
In 2024, 24% of all industrial-zoned development site acquisitions were for data center development (Newmark). Hyperscalers accounted for over 10% of all commercial development site purchases (Newmark). These companies need exactly what farmers have: large, flat parcels of land.
Meta's campus in Altoona, Iowa spans 10 data centers and 5 million square feet (Meta Data Centers). It was built on former agricultural land. The same story is playing out across the country: Google in Council Bluffs, Iowa. Meta in Forest City, North Carolina. Google in Douglas County, Georgia. All of these facilities sit on land that was once farmed.
The farmland-to-data-center pipeline
Agricultural land checks most of the boxes data centers need: flat terrain, large parcels, affordable base price, and often proximity to transmission infrastructure (because farms need power too). The main hurdle is rezoning, but that is more routine than most landowners expect.
Here is how the typical process works:
1. Property scored and qualified
Your farmland is evaluated for power proximity, acreage, disaster risk, water access, and fiber connectivity. This determines whether data center buyers would be interested.
2. Buyer match
If your property qualifies, it is shown to verified data center developers, investors, and brokers who are actively looking for land in your area.
3. Letter of intent
An interested buyer sends a non-binding letter of intent (LOI) with a proposed price and terms. You are free to negotiate or decline.
4. Due diligence
The buyer conducts environmental assessments, soil tests, and confirms power availability with the local utility. This typically takes 30-90 days.
5. Rezoning (if needed)
The buyer usually handles the rezoning application and associated costs. Agricultural to industrial rezoning takes 3-12 months depending on the county.
6. Closing
Title transfer, payment, and closing through a title company. Standard real estate closing process.
What your farmland could be worth
The national average for cropland is roughly $5,460 per acre (USDA). The weighted average for data center land was $244,000 per acre in 2024 (Cushman & Wakefield). That is a 40x difference.
At the top end, farmland in Loudoun County, Virginia has sold for $6.3 million per acre to data center developers (Data Center Dynamics). In Salt Lake County, parcels once valued at $50,000/acre are now approaching $400,000 (datacenters.com). Even in less active markets, the premium over agricultural value can be 10-50x.
Not every farm qualifies. The property needs to be near power infrastructure, in a low-risk area, and large enough. But if yours does, the financial opportunity is significant.
Farmland FAQ
Can I sell my farm to a data center company?
Yes. Agricultural land is one of the most common types data centers buy. It is flat, available in large parcels, and affordable. Meta's Altoona, Iowa campus (5 million sq ft) was built on former farmland (Meta Data Centers). Rezoning from agricultural to industrial is common in most rural counties.
How much is farmland worth to a data center?
The weighted average for data center land was $244,000 per acre in 2024 (Cushman & Wakefield). Compare that to the national average for cropland of roughly $5,460/acre (USDA). For the right parcel, the premium can be 40-100x agricultural value.
Will I need to rezone my farmland?
Usually yes, from agricultural to industrial or commercial. The process varies by county but typically takes 3-12 months. Many counties welcome data centers because of the tax revenue. The buyer often handles the rezoning process and costs.
Do I need to stop farming before I sell?
No. You can continue farming while the sale process is underway. Most data center deals take 3-12 months from initial interest to closing, and the developer does not need the land cleared until construction begins.