Why Land, Not Power, Will Define the Future of AI Infrastructure

Northern Virginia: The World’s Largest Data Center Market is Maxed Out

For years, Northern Virginia has been the epicenter of global cloud infrastructure, home to nearly 40% of the world's internet traffic.

But now, land constraints and zoning regulations are slowing down hyperscale expansion.

For example, AWS committed $35 billion to expanding its U.S. data center footprint—but zoning roadblocks in Virginia are forcing the company to look elsewhere. Similarly, Microsoft is pivoting to secondary markets like Poland and Sweden as traditional Tier 1 data center hubs hit real estate constraints. Even Google, whose Oregon expansion triggered lawsuits over water rights, is effected by the land grab. 

Cooling demands are rising, and environmental policies will dictate future data center hubs. The reality is this: the AI revolution is here, but it has nowhere to go.

The Shift from Power to Land as the Key Constraint

For the past decade, most data center site selection strategies revolved around power procurement—securing affordable energy, negotiating long-term power purchase agreements (PPAs), and integrating renewables.

But now, a new equation is taking shape:

• Land Availability – Can you find large-scale plots with the right infrastructure?
  
• Zoning & Approvals – How long will it take for local governments to greenlight construction?
  
• Environmental Factors – Does the site have sustainable water and cooling options?
  
• Proximity to Fiber & Connectivity – Can the site support ultra-low-latency workloads?

The New Winners: Data Center Expansion in Secondary Markets

With land drying up in major data center hubs, operators are being forced to rethink their geographic strategies.

With Northern Virginia struggling to expand, Ohio and Texas (specifically in Columbus, Dallas, and Austin) are emerging as new hyperscale hubs. In Poland & Sweden, Microsoft is shifting its cloud expansion strategy into these secondary markets with available land and renewable power. Investors also looking to maneuver through strict data center limits are turning to emerging Southeast Asian markets, like Singapore.

The biggest winners? Investors and developers who secure land now, before the next wave of AI-driven infrastructure demand surges past available real estate.

10 Data Center Development Strategies Shaping the Future

1.  Land: The foundation, but zoning and utility access create hidden risks. Winning regions: Ohio, Texas, Indonesia, Sweden.
2.  Powered Land: A step ahead, but still requires full buildout. Example: Digital Realty’s Frankfurt strategy.
3.  Powered Shell: Pre-built but flexible—QTS Realty Trust’s “Speed to Scale” strategy.
4.  Turnkey: Pre-configured deployments, but costly—Equinix leads in global turnkey solutions.
5.  Build-to-Suit: Meta’s 900-acre AI campus in Kansas City sets the new standard.
6.  Hyperscale: AI workloads require massive campuses with long-term PPAs and strong tax incentives.
7.  Edge: AI, IoT, and 5G demand localized processing, but profitability remains uncertain.
8.  Modular: Prefabricated solutions for faster deployment—Google & Microsoft are leading this trend.
9.  HPC: AI supercomputing clusters demand extreme power and cooling, forcing new infrastructure innovations.
10.  Sustainability First: Water and cooling demands will define site viability for AI workloads.

Why the Next 24 Months Matter

We are entering a land rush for the future of AI computing. The key questions for investors, hyperscale operators, and data center developers are:

• Which regions will emerge as the next major hyperscale hubs?
  
• Will sustainability regulations force site selection to shift further?
  
• How can investors secure land ahead of the demand surge?

The next generation of AI-powered infrastructure won’t be built in today’s data center hubs—it will be built where land, policy, and sustainability align. The biggest risk to data centers in 2025 isn’t power, it’s decisions being made today.