Market Briefing - Land Use & Development: Strategic Planning for Data Center Growth (Hosted by the Market Intel Committee)-Market Briefing - Land Use & Development Strategic Planning for Data Center Growth Recording

Video Transcription

Video Summary

The expert panel discussion focused on strategic land use and development planning amid rapid data center growth. Panelists included Kevin Arrow (senior VP of land development at TRAC), Kate Grapp (environmental practice leader at GHD), and Trish See (civil engineer at Kimley-Horn). They emphasized that data centers, while unique, fundamentally involve large-scale industrial development with complex site selection and entitlement processes.<br /><br />Key considerations in site selection include state tax incentives, power and fiber availability, community engagement, development constraints (like wetlands or endangered species), and infrastructure needs. Ownership models typically involve hyperscalers owning large parcels (now often 500+ acres) for flexibility and expansion.<br /><br />Environmental regulations, particularly air permitting involving “source aggregation” of data centers and co-located power generation facilities, can significantly impact timelines and feasibility. Water use myths were addressed; data centers’ water consumption—mainly for cooling—is often comparable to or less than agricultural irrigation and is being reduced through evolving technologies. Community concerns about environmental and traffic impacts underscore the importance of early, transparent engagement by developers.<br /><br />Tax incentives at state and municipal levels, especially sales/use tax exemptions and property tax arrangements, heavily influence location decisions and community acceptance. Hyperscalers prefer owning and developing raw land but increasingly consider shovel-ready sites due to demand outpacing supply. Development timelines range around 30 months but are frequently driven by long lead times for utility infrastructure.<br /><br />Overall, successful data center development balances technical, regulatory, and community factors with flexibility and creative problem-solving to support sustainable growth.

Keywords

data center development

land use planning

site selection criteria

environmental regulations

tax incentives

community engagement

hyperscalers

infrastructure challenges

sustainable growth