As the demand for digital infrastructure continues to grow, data centers have become critical hubs for storing and managing the world's information. To support this expansion, government agencies like the U.S. Navy and Butts County, GA are increasingly choosing to lease or sell their land data center operators, creating mutually beneficial opportunities that drive economic growth while addressing the rising need for secure, reliable data storage solutions.
Government Agencies Leasing Land for Data Centers
Leasing agency-owned land for data centers offers many benefits for government property owners, turning underused assets into opportunities in our tech-driven economy. This growing industry allows agencies to turn idle properties into economic hubs, boosting local growth while retaining land ownership. As a result of these benefits, government agencies across the United States are increasingly choosing to lease their land for data center development. Examples of government agencies that have leased their properties for data center development include the U.S. Navy, Butts County, GA, and the University of Dallas.
The U.S. Navy
The U.S. Navy plans to lease 930 acres around Naval Air Station Lemoore to a Massachusetts-based company for a data center and solar farm. The plan includes a 425 MW solar farm and a data center equivalent in size to three Costco stores. The data center will connect to a high-speed fiber optic network for efficient data transmission. Most of its power will come from on-site solar energy and battery storage, with grid power as backup during low solar output.
The project dates back to October 12, 2016, when 930 acres, known as the "Project Site," were leased to Liberty CO LLC for 37 years, set to expire in 2053. In 2019, the lease was transferred to Bright Canyon Energy, which Ameresco acquired in January 2024. Ameresco is the current lessee. The Navy's 2024 proposal amends the lease to allow construction of additional energy systems on the site. The lease initially approved 125 MW of solar PV systems but will now expand capacity by 300 MW, totaling 425 MW. The plan also includes a data center, EV charging stations, battery storage systems (BESS), backup power, microgrids, and related infrastructure.
Construction is set to begin in 2025, employing about 400 workers. Data center operations are expected in 2025. Development could be completed in a single phase or up to five phases, adding 20-25 MW per phase, potentially extending construction through 2027.
Development Authority of Butts County, GA
In December 2024, Amazon finalized an agreement to lease 543 acres in Butts County, GA, as confirmed by property records. The lease was arranged with the Development Authority of Butts County, an economic development agency that owns the land.
According to Russ Crumbley, chairman of the Butts County Board of Commissioners, this project represents the largest investment in the county's history, following more than a year of negotiations. Amazon Web Services (AWS), the cloud computing arm of Amazon, has identified Georgia as a key location for its rapid expansion of multibillion-dollar data centers. Over the past several months, AWS has acquired hundreds of acres across the state to support its growth.
As part of this expansion, AWS announced plans to create at least 550 high-skilled jobs in Georgia. These roles will include positions such as data center engineers, network specialists, engineering operations managers, security specialists, and other technical experts. This development underscores the strategic importance of Georgia in AWS’ mission to scale its global data center infrastructure.
The University of Dallas
In July 2024, the Irving City Council approved plans to rezone multiple acres owned by the University of Dallas for data center development. The project will include 770,000 square feet (71,535 square meters) of data center space, with construction expected to be completed by 2027. The Catholic liberal arts university has partnered with Dallas-based commercial real estate developer KDC to create a state-of-the-art data center campus, designed to meet the region’s growing demand for big data and artificial intelligence infrastructure.
The site, located along State Highway 114 at Braniff Drive, was initially designated for office or multifamily development. However, the university determined that current market conditions made those options financially unviable. The planned data center will generate significant economic benefits while maintaining a low-profile design to preserve the aesthetic and atmosphere of the neighboring Cistercian Abbey and Cistercian Preparatory School. Transforming the tax-exempt land into a revenue-generating property will add millions in taxable value. Specifically, this data center development is projected to contribute approximately $8.2 million annually in property and business personal property tax revenue for the city. It will also create jobs while having minimal impact on local traffic.
Clare Venegas, assistant vice president for marketing and communications at the University of Dallas, highlighted the strategic approach behind the project. “The University is exploring ways to develop some of our non-core campus land to generate long-term revenue,” Venegas explained. Leasing the property to a developer like KDC for a data center aligns perfectly with these goals, offering a sustainable source of income for the university’s future.
Government Agencies Selling Land for Data Centers
Government agencies can also sell their land for data centers. As a result of the 'gold rush' for suitable sites for data centers, the government can capitalize on this demand and sell land to developers for a significant profit. Examples of government agencies that have sold land for data centers include Walla Walla County, WA, Henrico County, VA, and the State of Arizona.
Walla Walla County, WA
According to reports from the Tri-City Herald and Elkhorn Media Group in October 2024, the Port of Walla Walla commission unanimously approved a $32.5 million sale of 500 acres at its Wallula Gap Business Park to a U.S. tech giant operating under the alias "Advance Phase LLC" for a data center project. Advance Phase LLC is likely a shell company for a major hyperscale data center developer. While the Port knows the company’s identity, a nondisclosure agreement prevents disclosure, a common practice to protect investment strategies.
Advance Phase LLC plans to build 16 data centers on the 500-acre site in four phases spanning 3.4 million square feet near Highway 12 in Wallula Gap. The Wallula Gap Business Park covers 1,900 acres of heavy industrial land, strategically located near US Highway 12, the Union Pacific Railroad mainline, and 10 miles from Interstate 395. Neighbors include Packaging Corporation of America, Tyson, and the planned Rockwool insulation plant.
The Walla Walla Data Center campus will bring significant job opportunities, with at least 380 direct roles and 400 additional indirect positions. Nationwide, data center jobs have grown 20% from 2.9 million in 2017 to 3.5 million in 2021, far outpacing overall U.S. job growth of 2%, according to PwC. This $5 billion facility is expected to spur economic growth and digital innovation while offering businesses secure, scalable data storage and advanced cloud computing solutions.
Data centers also drive local infrastructure improvements, requiring upgrades to roads, water, electricity, and fiber optic networks. These investments not only support data center operations but also benefit the wider community, attracting further development. Additionally, the Port of Walla Walla expects a nearly 50% increase in its tax base from the data center. The project would become a major taxpayer, boosting revenue for county government, schools, and public agencies. Port Commissioner Ron Dunning noted this growth could reduce tax rates for local businesses, farms, and homeowners.
Henrico County, VA
In November 2024, Iron Mountain announced the acquisition of 40 acres of land from the Henrico County Economic Development Authority within the White Oak Technology Park, located near Richmond, Virginia. This site will serve as the foundation for a new data center campus, designed to support over 200MW of capacity. The project includes plans for two state-of-the-art data center buildings, adding an estimated 150MW of capacity to Iron Mountain’s existing operations in Virginia. Additionally, the development will feature a new electrical substation to ensure a reliable, uninterrupted power supply across the campus.
Currently, Iron Mountain operates a 142-acre campus in Prince William County near Manassas, Virginia. This site is planned to accommodate up to nine facilities, collectively spanning over 2 million square feet (185,805 sqm) and providing 280MW of capacity. Of these, five facilities are already operational, with two more currently under development.
Virginia remains a prime location for hyperscale data centers, offering reliable power and modernized infrastructure to meet growing demand. Iron Mountain’s data centers in Virginia provide customers with secure, sustainable facilities designed to comply with strict government regulations. Additionally, businesses benefit from significant property tax savings, making these state-of-the-art data centers an efficient and cost-effective solution.
The State of Arizona
Novva Data Centers acquired a 165-acre parcel of state-owned land in southeast Mesa, Arizona, for $62.7 million during a September 2023 auction. The acquisition, reported by BizJournal, marks a significant step for the company's plans to develop a state-of-the-art data center. Situated along Warner Road and Loop 202, the land is part of the expansive Hawes Crossing master-planned community, which spans more than 1,000 acres. Novva CEO Wes Swenson, the sole bidder in the auction, finalized the deal, paving the way for this ambitious project.
The data center is designed for maximum energy efficiency and includes several advancements in data center design. Data halls are oriented east-west to reduce solar exposure, with office spaces adding variety and interest. Xeriscaping with native plants and downward lighting enhances the property while reducing light pollution. A standout feature of the Mesa campus is Novva’s water-free air-cooling system, projected to save up to 650 million gallons of water annually—an impressive improvement over traditional evaporative cooling. This system also reduces strain on municipal and agricultural water resources. Unlike conventional methods, which could discharge 350 million gallons of wastewater into municipal systems, Novva’s approach conserves water and eases pressure on essential infrastructure.
Government Agencies Purchasing Land for Data Centers
The increasing demand for data storage and processing has led government agencies to actively purchase land for data center development. These facilities are critical for managing vast amounts of information, supporting digital infrastructure, and ensuring security for sensitive data. Strategic land acquisition enables agencies to meet growing technological needs while fostering economic development in regions housing these centers. One notable example of a government agency that acquired land for a data center is the State of Illinois.
The State of Illinois
The State of Illinois has purchased a 9.4-acre plot in Springfield's Dirksen Business Park to build a new $80 million data center. Governor JB Pritzker announced the acquisition, which marks a significant step toward establishing the Central Computing Facility (CCF) for the Illinois Department of Innovation & Technology (DoIT).
The state paid $1.55 million for the land, located at 2900 Dotmar in Sangamon County. The Illinois Department of Central Management Services (CMS) will own and manage the Tier III-quality facility, which aims to achieve at least a LEED Silver Certification for sustainability in data center design.
The CCF will serve as the hub for the state’s IT infrastructure and data, accommodating approximately 300 employees, most of whom will relocate from other state facilities. While the construction timeline is yet to be finalized, earlier proposals suggest the building could span 90,000 square feet (8,400 square meters) with a multi-story design. This ambitious project underscores Illinois' commitment to advancing its technology capabilities while prioritizing sustainability.
Benefits of Data Center Development on Government-Owned Property
Leasing or selling agency-owned land for data centers offers significant benefits for government property owners, turning underutilized assets into opportunities that align with the tech-driven evolution of our economy. By leveraging this rapidly growing industry, government agencies can transform idle properties into hubs of economic activity, spurring local growth while maintaining ownership and control over their land.
Generates Revenue: Leasing land for data centers provides property owners with a steady, long-term income stream. This is especially valuable for owners of large parcels in high-demand areas. It also allows landowners to monetize their property while retaining ownership, helping build generational wealth.
Boosts the Local Economy: Data centers bring economic benefits to their communities by attracting new businesses, creating jobs, increasing tax revenue, and driving growth. They require significant workforce support for construction, operation, and maintenance, providing local job opportunities.
Facilitates Environmental Remediation: Leasing or selling agency-owned property for data centers can help remediate sites previously unsuitable for other uses, increasing land value and promoting sustainable development. As available land diminishes, brownfields and contaminated sites are becoming more appealing to developers.
Revitalizes Underutilized Properties: Data centers can transform neglected or abandoned sites like brownfields and retired coal plants into modern, functional facilities. Revitalizing locations like empty warehouses or vacant lots improves site quality and enhances the surrounding neighborhood’s appearance.
Improves Local Infrastructure: Data centers often necessitate upgrades to roads, water systems, electricity, and broadband infrastructure. Developers frequently invest in these improvements, benefiting both the data centers and the local community by boosting connectivity and fostering economic development.
Drives Renewable Energy Development: The high energy demand of data centers is pushing the development of renewable energy solutions. Many companies, such as Meta, now use renewable energy to power their data centers, reducing reliance on fossil fuels and supporting a cleaner energy future.
Leveraging Government-Owned Property for Data Centers
LandGate partners with government and public landowners to facilitate property leasing for data center development. Through our marketplace, agencies can showcase available properties directly to a vast network of data center developers actively seeking suitable locations at no cost. If you're interested in exploring the potential of your agency's properties for data center leasing, learn more here or schedule a call with LandGate's government team today:
