The growing demand for data storage and processing has opened up innovative opportunities for property owners, including those managing airport land. Leveraging unused or underutilized airport property for data center development can provide significant revenue streams while supporting the technological infrastructure needed in today’s digital age. This resource explores the potential benefits and considerations of establishing data centers on airport land, offering case studies and success stories of airports that have leased or sold their land for data centers.
Why are Airports Ideal Locations for Data Centers?
Airport land is highly suitable for data centers due to several critical factors. Airports already have robust infrastructure in place, including reliable access to power grids and advanced connectivity, which are essential for operating data centers. These facilities also require substantial amounts of electricity, and the existing infrastructure can usually meet these demands without the need for extensive upgrades.
Additionally, the noise generated by data centers, such as the hum of cooling systems and operational equipment, is not a concern for nearby residents since airports are typically located far from densely populated areas. This natural separation ensures minimal noise pollution impact, making airport land an ideal location for data center development.
Another significant advantage of utilizing airport land for data centers is the reduction in equipment shipping costs. Airports are natural logistics hubs, with easy access to established transportation networks, including air, road, and rail. This proximity allows for faster and more cost-effective delivery of critical infrastructure components, such as servers, cooling systems, and other equipment. By minimizing transportation distances and delays, data center operators can streamline supply chains, reduce costs, and ensure timely upgrades or repairs. This logistical convenience further solidifies airport land as a strategic choice for data center development.
Airports across the country are increasingly capitalizing on their properties by developing data centers, and many are partnering with LandGate to maximize the potential of underutilized land. LandGate specializes in helping government agencies and airport property owners transform idle spaces into high-value assets through clean energy and data center projects— all at no cost. One example within the hundreds of government agencies actively partnering with LandGate is the Rock Springs Sweetwater County Airport Board, which is leveraging LandGate's marketplace to promote unused land for lease, opening the door to innovative data center opportunities.
Interested in learning how LandGate can help your airport or government agency in a similar way? Learn more and book a free consultation call with our team below:
What are the Benefits of Leasing or Selling Airport Land for Data Centers?
Selling or leasing airport-owned land for data centers presents a unique opportunity to maximize the value of these properties while addressing the growing demand for data storage and processing facilities. Airports often possess large tracts of underutilized land, strategically located near urban centers and equipped with critical infrastructure, making them ideal candidates for data center development. Using airport land for data centers offers several key benefits, including generating revenue, repurposing underutilized property, driving local economic growth, and increasing tax income.
1) Generate Revenue
Government agencies and airports can unlock substantial revenue streams by leasing or selling airport-owned land for data center development. With the current gold rush for land that meets the strict requirements of data center operations— such as access to abundant power, robust connectivity, and favorable zoning— airport properties are uniquely positioned as prime real estate. This strong demand has driven up the value of such lands, enabling airports to command premium prices through leases or sales. By leasing or selling their land to data center developers, airports can diversify their revenue sources, funding essential infrastructure improvements and enhancing their operational resilience.
2) Revitalize Underutilized Property
Selling or leasing airport land for data centers presents a unique opportunity to revitalize underutilized properties that might otherwise remain dormant or inefficiently managed. Transforming these spaces into thriving hubs for data infrastructure allows airports to unlock their hidden potential, creating valuable revenue streams while contributing to local economic growth. By repurposing land that may not be suitable for aviation purposes, airports can attract investment, generate jobs, and foster technological advancements. This innovative use of space exemplifies how airports can adapt to evolving needs, ensuring that every acre of land holds strategic and financial value.
3) Boost Local Economic Growth
Establishing data centers on government land and airport properties has a profound impact on local economic growth. These facilities create numerous job opportunities, both during construction and in their ongoing operations, ranging from technical roles to maintenance and security positions. Additionally, the presence of a data center often attracts complementary businesses, such as technology firms, suppliers, and service providers, fostering a thriving business ecosystem in the surrounding area. This dynamic drives increased economic activity, enhances community development, and cements the airport as a hub for innovation and progress within the region.
4) Increased Tax Revenue
Using airport or other government-owned properties for data centers significantly boosts tax revenue for local governments and municipalities. These facilities often require substantial investments in infrastructure, equipment, and technology, leading to increased property tax assessments. Additionally, the businesses operating within data centers contribute to local tax bases through corporate taxes and other levies. The consistent and long-term operation of data centers ensures a stable revenue stream, enabling governments to fund public services, infrastructure improvements, and community programs. This financial benefit represents a critical aspect of leveraging airport land for economic development and sustainability.
A compelling example of the economic impact of data center development can be found in Loudoun County, Virginia. These developments have generated an estimated $890 million in additional tax revenue, significantly boosting the county’s finances. To put this into context, the county’s entire operating budget is projected at $940 million. Data centers provide exceptional value, costing the county just $0.04 for every $1 of tax revenue generated, compared to $0.25 per $1 for traditional businesses. This surge in tax revenue has allowed Loudoun County to maintain the lowest real property tax rate in Northern Virginia- roughly 25% lower than neighboring counties.
Data Centers On Airport Land
The development of data centers on airport land is a growing trend, leveraging the strategic and logistical advantages these sites offer. For example, Dulles International Airport in Loudoun County has allocated part of its land for data centers, benefiting from nearby fiber optic infrastructure and power resources to meet high-density demands. Similarly, Colorado Springs Airport is repurposing underused property for data centers, boosting economic diversification. These facilities thrive on secure, accessible land with reliable connectivity and low latency.
Dulles International Airport
In September 2018, Digital Realty signed a letter of intent to purchase 433 acres of land for $236.5 million from the Metropolitan Washington Airports Authority in Loudoun County, Virginia. The property has since been developed into the 'Digital Dulles' data center campus and includes several data centers and substations. The Airports Authority secured an estimated $207 million from the sale and plans to allocate the funds toward lowering the costs factored into the rental, fees, and charges imposed on airlines operating at Dulles.
The site is located in the heart of the world’s largest data center market, surrounded by numerous facilities that collectively offer approximately 18 million square feet of data center space. Loudoun County, famously nicknamed 'Data Center Alley,' boasts the highest concentration of data centers globally, with over 25 million square feet of active operations.
Colorado Springs Airport
A currently unnamed company is planning to purchase approximately 100 acres from the Colorado Springs Airport to establish a new data center within the airport's Peak Innovation Park. Greg Phillips, the city’s director of aviation, presented the benefits of the proposed facility, known as Project Edge, to the Colorado Springs City Council. According to Phillips, the data center will create jobs, increase demand for power, and sustain the ongoing development of the airport's 1,600-acre business park. In recent years, the park has seen significant growth, welcoming major additions like an Amazon distribution center, Aerospace Corp.’s Space Warfighting Center, and a Residence Inn/Courtyard by Marriott, among other businesses.
Data Centers Near Airport Land
Data centers can be strategically developed on airport land owned by government agencies to boost regional economic growth. For example, Buckeye Airport in Arizona is exploring opportunities to establish a data center hub, leveraging available land and nearby infrastructure. Similarly, Manassas Regional Airport in Virginia has become a prime data center location thanks to its accessibility and partnerships with local authorities. The Eastern Iowa Airport is also identifying underutilized land as ideal for data center development, aiming to attract tech investments and create jobs. These examples show how airport properties can be repurposed for technology projects that support local economies and meet growing data demands.
Buckeye Municipal Airport
Tract, a leading developer of master-planned data center parks, announced in August 2024 its acquisition of a 2,069-acre parcel of land in Buckeye, Arizona. This monumental project is set to become one of the largest data center parks in the United States, with plans to accommodate up to 20 million square feet of data center space across as many as 40 individual facilities upon full build-out. Tract is collaborating with local utilities to establish long-term power infrastructure capable of supporting up to 1.8GW, ensuring robust scalability for future growth. Tract’s vision of a data center park fits with the airport’s future needs and offers benefits over the original residential plan, including less traffic and lower water usage. The project is expected to create over 360 high-paying jobs.
“This project marks a significant milestone for Buckeye,” said Eric Orsborn, Mayor of Buckeye, Arizona. “Our partnership with Tract has positioned Buckeye to host one of the largest data center technology parks in the country, driving substantial revenue while ensuring a thriving and sustainable future. By identifying land near the airport, we transformed an outdated residential development plan into a decades-long strategy for economic growth. Projects of this magnitude require careful planning, particularly when it comes to community infrastructure. We’re proud that this project reduces water demand, preserves natural spaces, and creates hundreds of high-paying jobs.”
Anita Verma-Lallian, founder and CEO of Arizona Land Consulting, emphasized how rare it is to find large, privately owned sites like the 2,069-acre parcel she acquired in February 2022.
“This is considered a mega-site, ideal for users needing large-scale land,” Verma-Lallian said. “It’s one of the few parcels of this size still available, which made it especially attractive to us and to Tract. Closer to Phoenix, even 100-acre sites are hard to find. While 200- to 500-acre sites exist further out, anything larger is extremely scarce—especially with existing infrastructure.”
The site was initially planned as Cipriani, a master-planned residential community. However, after purchasing the land, Verma-Lallian identified challenges.
“We realized there wasn’t enough water for the original residential development,” she said. “So, we pivoted to industrial use, and the City of Buckeye fully supported the idea. With the Buckeye Municipal Airport just a mile east and set for expansion, industrial development aligned perfectly with the city’s long-term plans.”
Buckeye’s economic development director, Suzie Boyles, stressed the airport’s importance as an economic driver.
“Changing the zoning to light industrial and commercial supports the airport’s strategic growth,” Boyles explained. “The airport spans 700 acres and serves general aviation, but expansion plans include corporate jets, military operations, and cargo. Adjacent land uses need to complement this—you don’t want homes at the end of a runway. That’s why the city supported the zoning amendment.”
Eastern Iowa Airport
The Cedar Rapids City Council has given preliminary approval for a $750 million data center project set to begin construction in late September 2024. The facility will be located off 76th Avenue SW, near the Eastern Iowa Airport, within the Big Cedar Industrial Park, and close to the existing Google data centers.
According to project documents, the data center will create at least 30 permanent jobs. However, Mayor Tiffany O'Donnell emphasized to Iowa's News Now that this figure does not account for the hundreds, if not thousands, of construction and trade positions required during its development. Over the next two decades, the data center is projected to generate approximately $1 billion in property taxes. Additionally, the company behind the project has pledged up to $18 million for community enhancement initiatives. With Cedar Rapids experiencing significant growth, city council members believe the data center will serve as a catalyst, attracting even more businesses to the area and further boosting the local economy.
Manassas Regional Airport
In December 2023, the Manassas City Council approved the sale of 20 acres of city-owned land on Wakeman Drive to Amazon Data Services Inc. for the construction of a new data center. Amazon’s unsolicited offer valued the land at $27.72 million, translating to over $1.3 million per acre. The property, located at 10453 Wakeman Drive near the Manassas Regional Airport, is part of a larger parcel that will be subdivided before the sale. Its boundaries will include Wakeman Drive to the west, railroad tracks to the north, the Manassas-Prince William County border to the east, and a parking lot leased by Aurora Flight Sciences to the south.
Preliminary site planning is underway. However, because the property is part of the Airport Layout Plan, the Federal Aviation Administration may impose restrictions on how the sale proceeds can be allocated. The proposed data center is expected to generate $4 million to $6 million in annual revenue for the city. City officials have stated that the land holds no current or future strategic value for Manassas and have concluded that the transaction is in the city’s best interest. This sale marks a significant step toward economic growth, fueled by Amazon’s plans to establish the data center.
How to Leverage Airport-Owned Property for Data Center
Airports and government agencies across the country are uniquely positioned to transform underutilized land into thriving economic hubs by leasing or selling it for data center development. By doing so, they can drive economic growth, increase tax revenue, and efficiently repurpose land that might otherwise remain dormant. Data centers not only generate significant revenue but also create jobs and enhance local infrastructure, making them a win for both public and private stakeholders.
LandGate provides government agencies with a streamlined solution to evaluate and market land for data center leasing opportunities at no cost. With LandGate's comprehensive platform, agencies can access powerful data analytics, identify the highest and best use for their underutilized land, and connect directly with developers and investors actively seeking properties to lease. This helps to ensure that agency-owned property yields maximum value while contributing to the agency's economic development goals. Learn more about LandGate's free services for government agencies here or book a call with our team today:
