Powered land: The asset behind the data center

Data center clients are focused on securing power, and power now comes first, with real estate second. Joy Zumbro explains how to diligence powered land, starting with the fact that “powered land” is a marketing term.

A utility load ramp shows what capacity can be delivered and when, but it is not a commitment, and a letter of intent is not the same as a signed electrical services agreement. Joy explains why you need to establish which you have early, before spending too much time and money on a site that may not have contracted power. Uncommitted power may mean reconsidering the price, and even a one-gigawatt load ramp carries timing risk if that power arrives in five years.

Because the rush is often to control a site rather than acquire it, Joy looks for exit ramps, including the right to terminate if power cannot be contractually committed in the client’s timeframe.