US spending on land for future data centers reached about $6 billion in the first half of 2026, a 79% increase from the same period a year earlier, according to Avison Young. The surge reflects competition among hyperscalers, neocloud providers, energy-focused developers and investors to secure sites for large AI data center campuses.
As demand for computing capacity grows, access to electricity is becoming a key factor in both land value and project feasibility. Delays in securing power can push back construction schedules, disrupt customer commitments and leave costly facilities unable to begin operating.
“The biggest thing right now is speed to power,” said John Andril, a market intelligence manager at Avison Young.
In Northern Virginia, entitled land without power can sell for around $4 million per acre, while powered land can fetch at least $6 million per acre. The difference reflects more than electricity alone: development approvals, infrastructure and other site characteristics also influence prices.
Increasingly, buyers are paying for certainty that a site can receive power, rather than simply for its proximity to electrical infrastructure.
Power access shapes land pricing
An analysis by Altus Group of 80 verified data center land transactions found that committed utility capacity was the strongest predictor of land prices. Sites connected to 230-kilovolt or 500-kV infrastructure traded at roughly 2.4 times the price of sites associated with 138-kV or lower infrastructure.
Access to transmission infrastructure can reduce the upgrades needed to serve a project. Existing infrastructure may also shorten regulatory timelines—potentially by about a year—but being near a transmission line does not guarantee that a utility can provide the required capacity on schedule.
Sites with power delivery pushed into the early or middle 2030s are unlikely to attract much interest, Andril said. A power-ready property generally needs to have electricity available within about 18 months, roughly the time required to prepare a building for its initial load. Developers also need to know what substation equipment will be required and who will pay for and build it.
A common planning estimate is 0.5 to 1 acre per megawatt, though projects in land-constrained markets may achieve higher densities. Large developments need both sufficient land and a credible plan to deliver the power required.
A Texas deal highlights power’s value
A transaction involving Plug Power and Stream Data Centers illustrates how electricity capacity can factor into a project’s economics.
Plug agreed to sell Stream its Graham, Texas, project for $50 million, with up to $26.5 million in additional consideration tied to the electrical load capacity ultimately established. The agreement used a reference capacity of 164 megawatts.
Plug had submitted an interconnection request to Oncor and deposited $6.5 million with the utility to secure a requested 164 MW of load. It also posted a $7.75 million letter of credit under an ERCOT agreement. The project includes about 66 acres, development rights and grid-interconnection assets.
The deal was later restructured. In August, Stream acquired high-voltage electrical infrastructure for $40 million, while the land and remaining interconnection assets remained subject to closing conditions.
The original agreement was not a completed $76.5 million land sale. Rather, the potential additional payment depended on how much capacity the project ultimately secured, putting a value on the uncertainty around its power supply.
Northern Virginia’s high-stakes market
Loudoun County records show that SDC Twin Creeks Parent LLC paid $615.05 million for 97.15 acres in November 2025—about $6.33 million per acre. The property is part of the Twin Creeks data center development in Leesburg, Virginia. Dominion Energy separately paid $45 million for about 14 acres associated with the project.
These transactions do not isolate the contribution of electricity to land prices. Development rights, entitlements, site assembly and broader market conditions also affect valuations. Still, they demonstrate the scale of investment in one of the country’s most competitive data center markets.
Andril said power infrastructure can also transform land values in lower-cost markets. Property that might sell for around $10,000 per acre without a viable route to data center power could rise to six figures per acre once developers establish the necessary infrastructure and utility relationships.
Utilities seek proof of commitment
Utilities face a balancing act: they need to prepare for large new loads without investing billions of dollars in projects that may never proceed. Developers, meanwhile, want confidence that power will be available before committing significant capital to a site.
Letters of credit, take-or-pay agreements and stricter interconnection-queue requirements can help utilities distinguish serious proposals from speculative requests. Established developers and end users may support these measures because reducing speculative applications can make genuine demand easier to assess.
Onsite generation is another potential option. Developers can use it to support initial operations while waiting for utility infrastructure, though the economics depend on generation costs and the project’s financial model.
Power availability should therefore be included in site selection and project underwriting from the outset. A site may appear attractive because of its price or location, but the business case can fall apart if the electricity needed to serve customers arrives too late.
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