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Data center “wildcatters” race to secure high-power land
The boom is driven by hyperscalers and commercial real estate firms needing sites with up to 100 megawatts of power, turning certain parcels into high-stakes targets.
Commercial Observer describes a new wave of investors dubbed “wildcatters” who are buying and assembling land for data centers and electricity, as the market tries to meet demand from hyperscalers and commercial real estate developers tied to a $7 trillion data center boom.
The outlet says wildcatters often purchase land with optimism that it can become “powered land” with access to large-scale electricity, with Arrow Real Estate Advisors founder Morris Betesh describing deals centered on 100 megawatts of power.
According to Commercial Observer, the participants range widely, from farmers to institutional fund managers, with Newmark’s Dom Espinosa saying people from technology to energy sectors are pursuing the same goal in Texas industrial land.
Law firm Vinson & Elkins partner Courtney Hammond adds that some wildcatters secure options on land that already has zoning approvals and transmission access or a binding promise of future connectivity, then package it for sale to the highest bidder, including private equity and energy companies seeking to buy and flip parcels or provide power.