As the global demand for digital infrastructure and data centers surges, the redevelopment of retired coal sites and brownfields presents a unique opportunity for sustainable development. These sites, often rich in existing industrial infrastructure and positioned near necessary utilities like power and water, offer a strategic advantage for building data centers. Transforming these underutilized lands not only revitalizes communities but also leverages existing resources to minimize environmental impacts. Repurposing these locations into data centers supports the transition toward renewable energy, fosters economic growth, and contributes to the broader goals of sustainability and innovation within the tech industry.
Public and private property owners that own brownfields or retired coal sites can sell or lease their properties to data center developers to earn revenue and contribute to the data center boom in the U.S. Many government agencies own large brownfield sites that may be suitable for data center development! If you're interested in exploring offers to lease your property for lease for a data center, create a free listing on LandGate's marketplace. There are no fees and no obligations to accept any offers:
Redevelopment of Retired Coal Sites & Brownfields for Data Centers
Expanding data center capabilities on retired coal sites and brownfields presents an innovative solution to the escalating demand for digital infrastructure. These locations, once central to energy production or manufacturing, are now poised to become pivotal in the digital transformation era. Utilizing these plots for data center development not only capitalizes on already developed land but also aligns with sustainability objectives by minimizing land disturbances. With a critical need for expansive, accessible sites for data centers, these areas offer a promising avenue for repurposing traditional industrial zones into high-tech facilities.
Retired Coal Site Redevelopment
As coal power plants nationwide retire, they affect local employment, tax bases, and community identities. Redeveloping these plants involves converting them for new purposes. These retiring facilities often leave behind valuable infrastructure that can be repurposed, and local communities are frequently well-suited to guide and support these transformations.
Retired and retiring coal sites offer a unique opportunity for redeveloping energy infrastructure to power new data centers. The existing land and facilities, including electricity infrastructure for grid connections, can be repurposed effectively. By leveraging site features along with financial incentives from federal, state, and local authorities, these sites become highly attractive prospects for project developers.
Brownfield Site Redevelopment
Brownfield sites, including contaminated sites, also have the potential to be redeveloped into data center sites. It is estimated that there are more than 450,000 brownfield sites in the U.S. Although sometimes more expensive, these large sites are becoming more attractive as large land sites for data centers becomes scarce. Incentives such as tax credits, grants, and low-interest loans can help offset the costs associated with remediation. Data centers also have a much lower environmental impact compared to traditional manufacturing plants or industrial facilities that used to inhabit these sites. Additionally, data centers provide an opportunity for sustainable development by utilizing renewable energy sources and implementing energy-efficient designs. This not only benefits the environment but also reduces operating costs for data center operators in the long run.
Benefits of Utilizing Retired Coal Sites & Brownfields for Data Centers
Harnessing retired coal sites and brownfields for data center development offers significant advantages that align with both environmental and economic priorities. By transforming these underutilized areas, developers can capitalize on existing infrastructure while driving the digital economy forward with minimal land disruption. This strategic repurposing not only reduces the environmental impact associated with new constructions but also revitalizes communities economically by creating jobs and attracting investment.
1) Data Center & Clean Energy Development
Retired coal sites and brownfields even have the potential to be redeveloped into facilities that support both data centers and clean energy. Data centers require large amounts of energy, and developers often seek out locations with access to renewable energy sources. By utilizing these previously contaminated or underutilized sites, data centers can contribute to the growth of clean energy production and reduce carbon emissions.
2) Economic Revitalization & Development
Developing data centers on retired coal sites and brownfields also creates economic opportunities for local communities. These facilities bring in new jobs and stimulate local economies through increased tax revenue and partnerships with local businesses.
The benefits of utilizing brownfields and coal plants for data centers are especially evident for energy communities. Energy communities, particularly those that have been home to coal, oil, natural gas, and power plant activities, drove the industrial revolution and are essential to the prosperity of the United States. Today, energy communities, their families, and surrounding communities face a different challenge— coal mine and coal power plants that have closed, declines in coal production and generation, and long-term environmental and health effects from fossil energy generation.
3) Revitalize Underutilized Land & Leverage Existing Infrastructure
Redeveloping brownfield sites for data centers and clean energy breathes new life into these often unused properties. Despite the challenges of actual or potential contamination, brownfield sites hold significant redevelopment promise. These properties are often strategically situated near existing transportation infrastructure, such as railways, roads, or ports, as well as labor markets. As energy infrastructure shifts towards cleaner sources, new opportunities emerge to repurpose these sites. There remains substantial potential for the safe reuse of brownfields that have not yet been assessed or remediated, if necessary.
4) Revenue Generation for Property Owners
Public and private property owners can sell or lease their land for the development of data centers. Leasing land for data centers allows property owners to generate long-term revenue through lease payments paid by data center developers. Additionally, property owners can benefit from increased property values and tax revenue as a result of the development.
Government Policies and Incentives for Redeveloping Retired Coal Sites & Brownfields
There are various policies and incentives in place that support the push to redevelop retired coal sites and brownfields.
1) AI Infrastructure Task Force for Data Center Development
As part of the recent launch of the AI Infrastructure Task Force for Data Center Development, the Department of Energy is committed to providing resources to data center developers interested in repurposing closed coal sites specifically. With the current data center boom, there is a shortage of suitable locations to support these facilities. Revitalizing brownfield sites, such as decommissioned coal sites, offers a significant opportunity to rejuvenate these underutilized areas while meeting the high demand for new data center infrastructure.
2) EPA Brownfields Program
Grants to revitalize brownfield sites are available through EPA’s Brownfields and Land Revitalization Program. EPA Brownfields Grants can take several forms, including grants for site assessment, cleanup, multipurpose, revolving loan funds, and job training.
3) Energy Infrastructure Reinvestment (EIR)
The IRA established a new project category within the DOE Loan Programs Office, granting up to $250 billion in lending authority to "retool, repower, repurpose, or replace energy infrastructure" for cleaner applications. EIR can facilitate site remediation and redevelopment within a single transaction.
4) IRA Energy Community Tax Bonus
The IRA introduced the energy community tax credit bonus, which complements the EIR by fostering investment in communities with brownfields, retiring coal infrastructure, or those heavily reliant on fossil-related employment and tax revenues. Additionally, the IRA established other incentives for clean energy investment and production, featuring bonuses for domestic content and, in specific instances, projects located in low-income or Tribal areas. These bonuses can typically be combined with the energy community bonus, enhancing their impact.
Lease Land for Data Centers with LandGate
Retired coal sites and brownfields offer a unique opportunity for sustainable redevelopment through data center development. Not only does this repurpose underutilized or contaminated land, but it also supports economic growth, clean energy production, and addresses the demands for digital infrastructure. As technology continues to advance and our reliance on data centers increases, utilizing these sites becomes an innovative solution for meeting these needs while promoting sustainability and revitalizing communities. By leveraging existing infrastructure, financial incentives, and partnerships with local communities, data center developers can turn retired coal sites and brownfields into valuable assets for the digital age.
Interested in leasing your land for a data center? Check out LandGate's free property reports to understand your property's suitability for a data center scored on a scale of 0-100 within our value index scores. If you're interested in leasing your property for a data center after getting your free property report, you can list your land for lease for a data center on LandGate's marketplace at no cost and with no obligations to accept any offers from our wide network of data center developers:
Most government agencies own large brownfield sites that have the opportunity to be repurposed into data centers or clean energy facilities. If you're curious about the potential of your agency's properties to be leased for clean energy or data centers, schedule a free call with the government team at LandGate:
