By Gianfranco Perez, TEM Blog — Real Estate & Technology Insights
A Power Shift in Property Value
In a world where AI and cloud computing drive everything, the real game changer isn’t just software, it’s reliable electricity. The most valuable land today isn’t always in big cities like Manhattan or Silicon Valley. Instead, it’s where power is abundant and stable.
The explosion of AI and data demand has sparked huge interest in what’s called “powered land.” These are parcels that come fully prepared with permits, infrastructure, and access to strong energy grids, ready to host massive data centers. Land once overlooked because it was far from urban hubs is suddenly commanding prices like prime real estate. According to JLL’s 2025 outlook, the supply of such powered land will need to nearly double in the next five years to keep up with demand.
From Dirt to Data, What Now Matters
Just a few years ago, value in real estate was all about location. Now it comes down to power access, having the right permits, and proximity to fiber networks. Places near substations and fiber have seen prices soar to millions per acre, especially in places like Northern Virginia. Meanwhile, new hot spots are cropping up in the Midwest, Texas, and Northern Europe — all places rich in clean energy and with solid grids.
A smart energy analyst put it bluntly: owning megawatts of power is the new owning skyscrapers. Developers who can lock down power first aren’t just landowners anymore; they become utility brokers.
Power as a Tradeable Asset
Investors are now treating power rights almost like a commodity. Big funds are pouring hundreds of millions into landing these energy-ready sites, structuring deals that resemble real estate investment trusts but focused on energy infrastructure first.
And power isn’t something you can just get overnight. Connecting a new data center to the grid often takes years, but owning land with guaranteed power cuts through that delay and can seriously raise a site’s value.
Where the Smart Money Goes
After the usual tech hubs, investors are eyeing places that tick three crucial boxes — a surplus of renewable energy like hydro or solar, regulations that make it easier to get approvals, and fiber routes that keep data moving fast. Think Pacific Northwest, Texas, Iowa, parts of Scandinavia, and the UAE.
The strategy is clear: power abundant regions are now digital modernization hotspots. The old days of “build it and they will come” are fading. Now it’s about powering it up and knowing the tenants are ready to roll.
