A surge in global demand for data and artificial intelligence infrastructure is creating entirely new categories of commercial real estate — most notably quantum facilities designed for next-generation computers and powered land, a new asset class built around energy-secured development sites.
Powered land refers to property prepared for large-scale data center operations, complete with permits, grid connections, utility commitments, and infrastructure to deliver reliable electricity. Unlike traditional real estate, the true value lies not in walls or square footage, but in access to megawatts.
There are currently about 20,000 acres of powered land supporting operational data centers worldwide. To meet projected growth over the next five years, industry researchers estimate 40,000 acres — nearly 2 billion square feet — will be needed, an area equivalent to three Manhattans or one and a half times the size of Paris.
Global developer Hines, which has been in the data center space for over two decades, has pivoted toward securing power rights and entitlements for hyperscale sites. This involves mapping utility grids, negotiating with landowners, and guaranteeing power supply to grid operators.
“The challenge isn’t building walls anymore. It’s getting megawatts to the site,” said David Steinbach, Hines’ global chief investment officer. “The smartest capital today isn’t chasing square footage — it’s enabling computation.”
Steinbach highlighted powered land as its own investable class, with power rights now viewed as scarce, tradeable assets in high demand from tech giants and hyperscalers.
Private equity firms are also moving fast. In August, Silver Lake and Commonwealth Asset Management launched a $400 million powered land platform aimed at assembling strategic global sites. The initiative targets high-growth regions across the U.S., Canada, and the U.K., where access to power is becoming increasingly constrained.
“This investment positions us as a leader in the future of digital infrastructure,” said Lee Wittlinger, managing director at Silver Lake. “Our approach combines land and power solutions with strong energy partnerships to meet the rising demands of hyperscalers.”
Data center expansion is expected to spread beyond saturated hubs like Northern Virginia into power-rich regions such as the Midwest, Texas, Europe, and the Middle East. European markets face major undersupply, while Middle Eastern governments are heavily investing in AI, renewables, and grid capacity, opening fresh opportunities for developers and investors.
Still, challenges remain, including navigating land entitlements, local government approvals, and securing long-term power commitments from utilities.
“This isn’t just a technology story,” Steinbach emphasized. “It’s a real estate story that will reshape how and where development happens for decades to come.”
