Data Centers Decoded: Myth #2

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Jul 31, 2026

Key Takeaways

  • Finding available land does not guarantee a site is ready for a data center.
  • Power availability is often the biggest factor influencing site selection, project feasibility, and schedule.
  • Utility capacity, interconnection timelines, transmission infrastructure, and long-term growth planning should be evaluated before major investments are made.
  • Early due diligence helps identify risks, improve project certainty, and support better investment decisions.
  • Successful data center projects begin with understanding infrastructure, not just identifying available land.

MYTH: Finding land is the hardest part of developing a data center.

TRUTH: Finding the right power, not land, can add 5+ years to a project.

In today's data center market, power is the golden ticket.

A site may have the right location, zoning, and acreage, but without reliable power, it may never become a viable data center. Finding land can take months. Securing reliable power can take years.

Power availability is one of the first factors that determines whether a project can move forward. It requires coordination between developers, utilities, engineers, and agencies long before construction ever begins.

Before selecting a site, it's worth asking:

  • Has the utility confirmed the capacity needed to support both today's demand and future growth?
  • What transmission upgrades, substations, or interconnection improvements will be required before power can be delivered?
  • How will utility timelines influence project feasibility, investment decisions, and long-term success?

Answering these questions early reduces uncertainty, improves project confidence, and helps teams make better investment decisions before significant resources are committed.

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