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Power, Land, and Moving Markets: 2025 Trends in Data Center Development

  • Writer: Grayson
    Grayson
  • Oct 28, 2025
  • 4 min read

The rapid adoption of AI, unprecedented cloud expansion, and near-daily headlines about hyperscale deals have made powered land the defining battleground of digital infrastructure in 2025. While a year ago power-rich sites were simply “hot,” today they are the core driver of site selection, capital flow, and mergers across the U.S. and global tech corridors. Understanding these trends isn’t optional - it’s strategic, for developers, capital groups, and operators shaping the next era of compute.


Powered Land Market: Surging Demand, Scarce Supply


The numbers in 2025 are extraordinary. North America’s primary market supply reached a new record of 8,155 MW in H1, up over 43% year-on-year, yet vacancy sits at an all-time low of 1.6%, with hyperscale and AI tenants commanding the lion’s share. Pricing for 250kW-500-kW deployments rose 2.5%, while 10-MW+ sites saw up to 19% increases as competition for contiguous power blocks intensified. Northern Virginia, the country’s data center hub, saw a net absorption of 538-MW and a remarkable 80% rise in under-construction capacity, all driven by power availability and delivery timelines.


Across the sector, land acquisition strategies have fundamentally shifted. Power-first site selection leads the way; developers are targeting parcels within a 1-mile radius of substations, prioritizing speed-to-market, scalable power, and zoning-readiness over traditional locational factors. Premium pricing now accompanies expedited permitting and utility partnerships, as end-users and investors push to lock in future capacity under tight grid constraints.



Institutional Capital: Transforming the Landscape


Institutional investment in powered land and data centers continues to accelerate, fueled by three core trends: AI-driven digital infrastructure demand, reindustrialization, and clean energy transitions. Major capital groups are now directly underwriting power generation and land acquisition, often moving faster than typical real estate cycles. Nearly 86% of surveyed institutional investors hold exposure to digital assets or plan allocations for 2025, with a majority committing over 5% of AUM to these strategies. Alongside tech players, institutions are flocking to secondary markets like Salt Lake City and Reno, where land prices surged 20-40% year-on-year as local grid and environmental advantages become scarce.



M&A Activity: The Power Play


2024 was a record year for data center and powered land M&A, with over $70B in deal activity. That intensity is showing no signs of slowing in 2025. The market has shifted from new platform build-outs to reinvestment into high-quality existing infrastructure. The most attractive opportunities increasingly revolve around platforms that outgrow their capital base, resulting in large-scale direct acquisitions or public offerings.


A clear trend: proximity to dispatchable power and site execution velocity now determine deal valuation and risk appetite. Industrial land with on-site or adjacent power generation commands multiples up to 2x–4x what was seen less than two years ago, especially in power-constrained locational markets like Northern Virginia and the Sun Belt. Ongoing M&A sees capital groups partnering with developers, utilities, and operators to secure scalable, infrastructure-ready sites ahead of wider market cycles.



Insight and Takeaway


For data center developers, hyperscalers, and institutional capital strategizing for the remainder of 2025, one theme stands above all: secure power, secure land, and move quickly. Market participants who align power and permitting first (and can scale their capital) will corner the next wave of digital infrastructure growth. In the current climate, competitive advantage goes to those who think several MW ahead.


Why Our Powered-Land Strategy Wins


Grayson Power targets reclaimed land acquisitions and sites with historical power generation or heavy consumption, where electrical infrastructure, easements, and community expectations already exist. By prioritizing locations with documented substation adjacency, former transmission interties, and proven load profiles, we shorten time-to-power and reduce interconnection uncertainty. These sites also tend to have established water/wastewater, natural gas, fiber, and transport access—critical utilities that cut horizontal development risk. Our approach leverages existing rights-of-way and environmental records to streamline permitting, align with local stakeholders, and enable phased, utility-timed buildouts for data centers and heavy industry. The result is power-credible land that moves faster, costs less to ready, and scales more predictably than greenfield alternatives.


Talk to Grayson About Powered Land


Whether you’re a hyperscaler, manufacturer, or institutional developer, we help you identify and secure powered land that moves at the speed of the grid. Explore our services and connect with us to pressure‑test your 2026 pipeline.


Wide angle view of a substation with adjacent large-acreage powered land
A switchyard bordered by under powered land ready for industrial use redevelopment

Sources (official data)


CBRE — North America Data Center Trends H1 2025 (Sep 10, 2025): https://www.cbre.com/insights/reports/north-america-data-center-trends-h1-2025


Datacenters.com — Real Estate Trends: Buying Land for Data Center Development in 2025 (Apr 20, 2025): https://www.datacenters.com/news/real-estate-trends-buying-land-for-data-center-development-in-2025


Datacenters.com — Data Center Land Deals: Why Prices Are Skyrocketing in 2025's Second Half (Jul 2025): https://www.datacenters.com/news/data-center-land-deals-why-prices-are-skyrocketing-in-2025-s-second-half



Data Center Frontier — Utilities Race to Meet Surging Data Center Demand With New Power Models (Oct 6, 2025): https://amplyfi.com/blog/how-institutional-investment-trends-are-reshaping-market-intelligence-in-2025/


Morgan Lewis — Power and Speed: Data Center Bytes (Mar 21, 2025): https://www.morganlewis.com/blogs/datacenterbytes/2025/03/power-and-speed


Barron's — Entergy Will Power Google's New Arkansas Data Center (Oct 7, 2025): https://www.financierworldwide.com/data-centre-ma-in-2025


Norton Rose Fulbright — Growth of the Data Centre Market: Key M&A Trends (Jan 2025): https://www.nortonrosefulbright.com/en/knowledge/publications/e1ef7b4a/growth-of-the-data-centre-market-key-ma-trends


ULI — Emerging Trends in Real Estate United States and Canada 2025 (Sep 2025): https://knowledge.uli.org/en/reports/emerging-trends/2025/emerging-trends-in-real-estate-united-states-and-canada-2025


McKinsey — The Data Center Balance: How US States Can Navigate the Opportunities and Challenges (May 2025): https://www.mckinsey.com/industries/public-sector/our-insights/the-data-center-balance-how-us-states-can-navigate-the-opportunities-and-challenges



IMAA — Weekly M&A News: Oct 13–19, 2025 (Oct 19, 2025): https://imaa-institute.org/m-and-a-news/weekly-m-and-a-news-oct-13-to-19-2025/




ULI Americas — Emerging Trends in Real Estate (Oct 2025): https://americas.uli.org/emerging-trends-in-real-estate-2025/


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