In recent years, Wyoming has emerged as a prime location for data centers due to its impressive blend of low-cost energy, favorable tax environment, and vast open spaces. As technology continues to evolve, the demand for robust data infrastructure is skyrocketing. Property owners in Wyoming have a golden opportunity to capitalize on this growing demand by leasing their land for data center development.
By listing their properties on LandGate's marketplace, landowners can reach a network of potential lessees looking for the ideal location to establish or expand their operations. Leasing land for data centers not only provides a lucrative revenue stream but also contributes to the state's economy and technological advancement.
What Should Landowners Know about Data Center Development in Wyoming?
Wyoming is rapidly establishing itself as a prominent player in the data center industry, driven by a unique combination of factors that make it an attractive location for investment. As the demand for data services continues to soar, data centers play a crucial role in maintaining the digital infrastructure we rely on daily. These specialized facilities are designed to process, store, and manage vast amounts of data, operating around the clock to support our increasingly connected world.
A significant factor contributing to Wyoming’s competitive edge in the data center market is its advantageous tax structure. The state has no corporate or personal income tax, which significantly reduces operational costs for businesses. This favorable tax environment, combined with low energy costs, creates a compelling landscape for data center development.
Wyoming is also rich in renewable energy resources, particularly wind power. The southeastern region of the state boasts some of the best wind resources in the nation, where sustained winds are funneled through mountain passes and across the high prairie. This enables Wyoming’s wind farms to operate at impressive capacity levels. Additionally, the state has 16 hydropower dams, primarily older units owned by the federal government, which provide a reliable source of clean energy to support local industries, including data centers.
For landowners interested in capitalizing on this growing market, LandGate serves as a valuable marketplace connecting property owners who wish to sell or lease their land directly to developers seeking sites for data centers. LandGate offers crucial property data to help owners make informed decisions, providing insights on land value and capitalization rates at no cost. To assess the suitability of your property for data center development, you can create a free property report by finding your property on LandGate's map.
Why is it Attractive to Lease or Sell Your Land for Data Centers in Wyoming?
Wyoming is emerging as an attractive destination for data center development, fueled by significant investments from major tech companies. Recent announcements, including an $800 million data center from Meta and a massive 945-acre project in Cheyenne, suggest these facilities could generate substantial economic revenue and job creation in the region. Projections indicate that each major data center project could bring hundreds, if not thousands, of jobs during construction and ongoing operations, offering landowners a unique opportunity to benefit financially from leasing or selling their property.
The state’s favorable tax environment—highlighted by the absence of corporate and personal income tax—along with low energy costs, enhances its appeal for data center developers. Wyoming’s abundant renewable energy resources, particularly wind and hydroelectric power, further support the operational efficiency of data centers. The southeastern part of the state, known for its robust wind resources, is especially well-suited for large-scale projects that require reliable, clean energy.
Buildable acreage for data centers in Wyoming varies, with small facilities starting at just a few acres and large-scale projects often exceeding 200-300 acres. The typical medium-sized data center ranges from 50-90 acres, which aligns with current market demands. This flexibility allows landowners to explore different leasing options that suit their property specifications.
Beyond financial gains there are additional benefits of leasing land for data centers. Landowners in Wyoming can contribute to the regional economy through data center development, which fosters job creation and economic diversification. Data centers are also increasingly incorporating advanced technological methodologies, such as artificial intelligence and machine learning, to enhance performance and operational efficiency.
Moreover, sustainability is a key focus, with many data centers adopting innovative cooling techniques and recycling systems to minimize environmental impact. These projects are designed to be resilient, with built-in features that mitigate risks from natural disasters. This creates a reliable stream of income for landowners that lease their land for data centers regardless of the risk of natural disasters.
Considerations for Property Owners in Wyoming
By leasing or selling property in Wyoming for the development of data centers, landowners are able to contribute to the infrastructure that keeps the digital world and the economy running smoothly. Property owners of all types, ranging from individuals to corporations and governments, are not only a critical component in the digital network that supports the technology provided by data centers we need to operate every day, but also a key component to regional and state economic development.
When selling or leasing land in Wyoming for data centers, landowners should keep the typical size requirements in mind along with several other important considerations. Zoning and regulatory laws will impact the amount of land eligible for development. The property’s proximity to power and fiber optic sources will also affect a property’s suitability for data center development.
Wyoming's strategic location and abundant natural resources position it as a prime destination for data center development, offering mutual benefits for landowners and developers alike. With no corporate or personal income tax, along with significant long-term tax advantages, data center investors can enter into long-term lease agreements with landowners. This arrangement provides landowners with a secure and consistent source of income while supporting the growth of a thriving data center ecosystem in the state.
Leasing Property for Data Centers in Wyoming
The process of leasing property for data centers in Wyoming involves assessing your property's suitability for a data center, marketing your property for lease, and then negotiating lease offers.
Step 1: Land Qualification
The first step for landowners in Wyoming curious about leasing or selling their land for data center development is to understand if their land is suitable for a data center. Factors such as location, buildable acreage, zoning, topography, proximity to energy and utilities, and environmental considerations like flood zones and wetlands all impact a property’s viability for a data center.
Curious if your land in Wyoming could qualify for a data center lease? LandGate provides data center value index scores for every property in the U.S. within our free property reports. On a scale of 0-100, the data center value index score will let you know how suitable your property could be for data center development. Get a free property report by finding your parcel on LandGate’s map:
Institutional and government property owners in Wyoming also have the opportunity to lease their properties for data center development to generate revenue and contribute to economic growth. To learn which of your agency’s specific sites are most suitable for data center development, book a free consultation call with the government & corporate team at LandGate below:
Step 2: Market Your Property for Lease or for Sale for a Data Center
Listing your property in Wyoming for lease or for sale for the construction of a data center on LandGate’s marketplace is the best way to market and get the most value from your property. By listing on LandGate’s marketplace, you are presenting your property to various competitive companies actively searching for properties in Wyoming to lease or buy for data center development.
If you’re unsure if your property could be suitable for a data center, our team recommends creating a listing anyway- listing is completely free with no obligations to accept any offers, so you never know what kind of offers you may receive.
Step 3: Receive Data Center Lease Offers
Once your listing is live on LandGate’s marketplace, any interested developers will reach out to you directly with offers using the contact information provided when you registered for your LandGate account.
Step 4: Data Center Lease Negotiation
Negotiating the ground lease offer is the first step you will take after receiving an offer. LandGate is unable to provide legal advice or assist with conducting due diligence on any offers that you receive, but we can refer you to a licensed expert that can help. These professionals, such as commercial real estate brokers, attorneys, and engineers, can assist you in ensuring that you are securing a good deal.
Always remember that lease agreements are completely negotiable. You can negotiate things like the value of the lease payments, the length of the lease, and the percentage of the escalator. Typically, ground leases for data centers range from 75-99 years, and generally provide escalating base rents, percentage rent arrangements, and outline responsibilities for maintenance and utilities.
Step 5: Lease Option Agreement
After negotiations, developers need to retrieve data center option agreements. Typically, this follows a check by the developer, ensuring that the land meets their needs and in the case of tax exemptions of subsidiaries, meets all necessary government requirements. It is essential for both parties involved in the agreement to assess possible engineering and land factors, to ensure the feasibility of the project and ensure that it receives all necessary approvals to begin. Oftentimes, data center proposals will be pitched to the county or state government.
Why can’t I get a lease agreement directly?
The process of developing any large data center begins with the developer optioning the land, also known as ‘site control,’ typically through a Ground Lease. Once thorough land evaluation has taken place, utility application is necessary. This means that the data center project will need further due diligence to ensure that sites have required proximity to a power source (renewable or a power substation), access to fiber optic cables, and that necessary easements are in place.
Where can a landowner get more information about the lease?
You can find out if your property could be suitable for a data center by getting a free property report from LandGate. LandGate provides data center value index scores for every property in the U.S., which will evaluate your property on a scale of 0-100, letting you know how suitable your property could be for a data center. Get a free property report by finding your parcel on LandGate’s map:
Step 6: Lease Agreement
Once site control is confirmed, the project is then moved to a ‘planned’ phase. The option agreement now becomes an official lease agreement, and the landowner begins to receive lease payments from the data center developer. The specific amount of these lease payments depends on what is negotiated in the lease.
Step 7: Data Center Construction
Lease payments for data centers are phased as projects progress. Typically, the lease payments start as a small amount during the option period and increase during the construction phase of the data center, with payments reaching their peak upon completion of the data center.
Depending on the size of the project, constructing a data center can take anywhere from 18 to 40 months before the data center reaches full operation. Smaller projects will take a substantially less amount of time to complete.
Step 8: Active Data Center
After construction is completed and the data center is fully operational, the lease enters the ‘production’ phase, which indicates that the land is now responsible for data storage and transmission through the data center. This period will last throughout the remainder of the lease.
