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A Collaboration between KPMG and LandGate What Are Data Centers? Data Centers are specialized facilities that store data for businesses and organizations. They consist of a network of computer systems, storage equipment, and a network of servers that support data processing, storage, and distribution. As LandGate data forecasts, the United States data center market is the leading market for data storage and is expected to double its  power capacity by 51.4% over the next decade. This supplements market estimates that indicate that data centers will comprise 8% of US Power consumption by 2030.  Data centers are an essential part of the digital economy while maintaining internet growth and online service demand. Across the market, different types of data centers exist, ranging from hyperscale to enterprise, and colocation projects, offering multiple opportunities for investment into data. Hyperscale data centers  are large data centers, usually owned by a singular organization. These data centers span over 100 acres, with the market average for their size being 400 acres. They are able to store large amounts of data and are often owned by companies with vast data and processing needs. Companies such as Amazon Web Services, Google, and Meta lead hyperscale projects within the US data center market.  Enterprise data centers  are owned by companies to meet the specific needs of their end users. These data centers often exist on data center campuses, and offer multiple opportunities for company employees.  Colocation data centers  are large data center facilities that rent out space to third parties for their servers or other network equipment. Colocation data centers serve to be the most popular type of data center within the market, as it gives companies the opportunity to invest in data storage without having to pay for building, construction, and other miscellaneous costs. It also allows data storage across a multitude of locations.  While colocation facilities have the most market traction, they also prove to be the most profitable data centers across the different types. However, with recent increases in investment into the data center market, the hyperscale facilities are seeing an overall rise in numbers, earning them a close second place to their colocation counterparts.  What crucial details are essential for understanding data centers? The US data centers are some of the largest markets across the world with Texas and Virginia being far ahead of any other market globally. Leading states include Texas, Virginia, California, New York and Florida. While these states have been consistent in increasing their data center capacity, states such as Illinois, Arizona, Georgia and Oregon have seen considerable growth over the last five years, welcoming over 500 MW of data into the state each.  Each data center is home to multiple factors that determine its operational capacity and overall value in the market. White space is known as the area within a data center that stores IT equipment that is or can be used for additional storage or computing while gross max power gives insight to how much power the data center is using. The power usage effectiveness is a metric to determine the energy efficiency of the data center in the form of a ratio calculated by dividing the total amount of power entering a data center by the power used to run IT equipment and data storage utilities. The closer the ratio of power usage effectiveness is to 1, the more efficient the data center. The current national average for power usage effectiveness across the United States is 1.5. Other data center specs that LandGate provides include the year of operation, building size, and parcel acreage.  LandGate’s extensive state profiling assesses development, economic impact, technological advancements, and off-take capacity analyses across the region and highlights the critical functions of each in supporting growing energy demands. LandGate stands out as the only platform providing a comprehensive profile on the US data market including data centers, fiber optic lines, and off-take capacity. With over 95% of data centers in exact locations, LandGate exclusively offers its users the most precise data for white space, gross max power, power usage effectiveness (PUE), year of operation, building size, and parcel acreage data across data center resources.  What Makes For a Good Data Center?  A number of different factors go into determining the efficiency and productivity of a data center. Location has a crucial impact on operational efficiency, cost, and even the lifespan of the facility. A well-chosen site can lead to better energy consumption, lower latency, and increased security. For developers, understanding these factors is essential in making a strategic and cost-effective decision. Data center proximity to network hubs can dramatically affect its performance. Being closer to major network nodes reduces latency and enhances the speed of data transmission. A robust   fiber optic network  is essential for high-speed data transfer. When evaluating potential sites, the local infrastructure is needed to support data center bandwidth requirements. To guarantee uptime, data centers should have redundant connectivity options. The most common source for redundancy is natural gas or nuclear power. Multiple fiber paths and diverse routes can protect against outages and ensure continuous operation.  Water supply is also essential for data center cooling methodologies, and waste management systems play a major role in overall operational efficiency.  There are also several climate considerations that must be taken into account when developing a data center. Cooler climates can reduce the need for extensive air conditioning, lowering both your energy consumption and costs. Additionally, understanding local zoning laws and permit requirements is crucial for avoiding legal complications.  Moreover, each state will have its own set of tax incentives to build and develop data centers as well as regulatory and zoning requirements. Some major states also have programs that enable the growth and expansion of data centers and ensure that other industries, such as construction, maintenance, and IT, also benefit from these large investment projects.  Natural disasters such as floods, earthquakes, and hurricanes can severely impact data center operations. Compliance with local environmental regulations is essential to avoid legal issues and ensure smooth project execution.  The data center depicted below is Apple's massive data center in Mesa, Arizona, which spans over one million square feet and is designed for high efficiency and security. The facility utilizes renewable energy sources, including solar power, to minimize its carbon footprint as shown in the LandGate  data analysis below. The facility supports over 1100 employees and created over 30,000 jobs across construction, maintenance, and corporate industries. Overall, the Mesa data center exemplifies how large-scale operations can prioritize ecological impact while meeting growing demand for digital services.  What is the Role of Offtake Capacity in the Operation of Data Centers? Offtake capacity  refers to the amount of energy that can be safely and reliably withdrawn from the electric grid at any given point to power various installations and utility projects. This capacity is a critical factor in ensuring that energy supply meets the demand of facilities like data centers, industrial plants, and other large-scale operations.Offtake capacity is a cornerstone of effective grid management, essential for sustaining economic efficiency and service reliability in the face of evolving energy demands.  At its core, offtake capacity involves a commitment between a seller and a buyer for the sale and purchase of energy or resources. This capacity can be quantified in terms of megawatts (MW) for electricity or other relevant metrics for different resources. Offtake agreements help mitigate the risk of price volatility and supply shortages by locking in terms that provide stability for both parties. For data centers, these agreements are especially important as they support operational continuity and align with sustainability goals by facilitating the procurement of clean energy sources. Offtake capacity plays a pivotal role in the operation of data centers by providing a stable and reliable energy supply, which is essential for uninterrupted service delivery. By securing energy through offtake agreements, data centers can better manage operational costs and protect themselves against market fluctuations. Additionally, these agreements often facilitate the procurement of renewable energy, helping data centers meet sustainability targets and reduce their environmental impact. Moreover, understanding available offtake capacity allows data centers to plan for scalability, ensuring they can accommodate increasing demand without risking energy shortages. Strong offtake arrangements not only enhance the financial viability of data center projects, making them more attractive to investors, but they also support compliance with regulatory standards concerning energy consumption and emissions. Ultimately, offtake capacity is integral to the operational and financial stability of data centers in an increasingly competitive and environmentally conscious landscape. What Future Trends are Shaping the Sustainability of Data Centers? The sustainability of data centers is increasingly shaped by advancements in energy efficiency technologies and innovative cooling solutions. As the demand for data processing continues to rise, data centers are adopting more efficient hardware and software practices, such as virtualization and containerization, which optimize resource use. Additionally, the integration of artificial intelligence and machine learning in operational management allows for real-time monitoring and predictive maintenance, significantly reducing energy consumption. Moreover, modular data center designs are gaining traction, enabling scalability while minimizing waste and maximizing the use of sustainable materials. The growing demand for renewable energy is also profoundly influencing data center development, as companies strive to align their operations with global sustainability goals. Many organizations are investing in on-site renewable energy generation, such as solar panels and wind turbines, to reduce their carbon footprint and achieve energy independence. Furthermore, data centers are increasingly entering power purchase agreements (PPAs) with renewable energy providers, securing a stable supply of green energy. This shift not only mitigates environmental impact risk but also appeals to consumers and investors who prioritize corporate responsibility. As a result, the data center industry is evolving to become more resilient and sustainable, driven by a commitment to harnessing clean energy sources.

The solar industry is reaching new heights. According to the Energy Information Administration  (EIA), solar electricity generation from utility-scale installations is set for substantial growth in 2024. This progress aligns with global sustainability goals and marks a pivotal moment for developers and stakeholders in the solar energy landscape. A Surge in Solar Energy In its recent report , the EIA highlights a significant increase in solar electricity generation. This growth is primarily driven by new utility-scale solar installations coming online. The continued expansion of solar capabilities reflects an ongoing commitment to renewable energy and environmental responsibility. Utility-scale solar power refers to large-scale solar installations (or commercial solar installations) that generate and distribute power into the electric grid. These facilities are typically large enough to be classified as 'utility-scale' and contribute significantly to the overall energy mix. Utility-scale solar  plants provide the benefit of fixed-priced electricity during peak demand periods when electricity from fossil fuels is most expensive. According to the most recent figures , commercial solar farms in the United States have a total capacity of 80 gigawatts (GW), which is enough to power approximately 18 million homes. The National Renewable Energy Laboratory  labels a solar project as "utility-scale" if it has 5 megawatts (MW) of solar energy capacity. This highlights the significant potential utility-scale solar power has in contributing to the country's renewable energy portfolio. The current state of the solar power market in the US is promising. With technological advancements and decreasing costs, numerous large projects in the interconnection queue, along with supportive government policies and increasing awareness about climate change, the adoption of solar power is on the rise. The solar industry continues to innovate and evolve, presenting various opportunities for developers, investors, and end-users alike. The Surge of Utility-Scale Solar Power The adoption of utility-scale solar power in the US energy sector has been experiencing a significant upward trend. According to the US Energy Information Administration, utility-scale solar installations are expected to more than double  compared to 2022 by the end of 2023. This is driven by the country's ongoing transition  towards a decarbonized electric system. In fact, it's projected that solar will supply almost all growth in U.S. power generation  for the next two years. Several key drivers are fueling this surge. One of the primary factors is the mounting concern over climate change and the urgent need for sustainable development. Utility-scale solar power represents a clean, renewable source of energy that can help reduce greenhouse gas emissions and mitigate the impacts of climate change. Government policies and incentives have also played a pivotal role in promoting the adoption of utility-scale solar power. Federal, state, and local programs  provide tax credits, rebates, and other incentives to lower the cost of solar installations, making them a more attractive option for the energy sector. Technological advancements and decreasing costs are another crucial driver. The technology behind solar power has been advancing rapidly, leading to more efficient systems that can generate more power. At the same time, the costs of these systems have been falling, making solar power a more economically viable option. Supply chain issues have also led to falling prices, further boosting the adoption  of solar power. Several prominent solar energy developers in the USA are at the forefront of this surge in utility-scale solar power. These include major companies like NextEra Energy (a LandGate user), First Solar, and SunPower, which have been heavily investing  in large-scale solar projects across the country. Insights for Solar Project Developers Solar power developers are presented with a wealth of opportunities in today's fast-paced energy market. Emerging markets and sectors offer vast potential for expansion, particularly in regions where access to electricity is limited or unreliable. Countries in Africa, Asia, and South America, for instance , are increasingly turning to solar energy to meet their growing power needs. Also, sectors like agriculture and manufacturing are exploring solar-powered solutions  to reduce operational costs and improve sustainability. Innovation in commercial solar technology is another area of opportunity. The advent of high-efficiency solar panels, advanced solar trackers, and improved energy storage solutions has opened up new possibilities for utility-scale projects. Developers who stay at the forefront of these technological advancements  can gain a competitive edge in the market. Strategic partnerships and collaborations play a vital role in the successful execution of solar projects. Collaborating with local communities, government agencies, and other stakeholders can help in securing necessary permits , gaining community acceptance, and navigating complex regulatory landscapes. Speaking of regulatory landscapes, understanding and navigating them is crucial for any solar project. Policies and regulations vary widely across different regions and can significantly impact project feasibility and profitability. Even the largest solar developers in the US need to stay abreast of current policies , such as renewable portfolio standards, net metering laws, and federal tax incentives, to ensure project viability. Several utility-scale solar projects serve as successful case studies. For example, the Solar Star project  in California, developed by SunPower and owned by BHE Renewables, is one of the largest solar projects in the world, with a capacity of 579 MW. This project highlights the potential of utility-scale solar power and serves as a model for future developments. Opportunities for Investors Investments in utility-scale solar development present significant opportunities for both individual and institutional investors. One of the key aspects of investing in this sector is the ability to evaluate the potential of solar projects accurately. Tools such as those offered by LandGate  can be instrumental in this process, providing vital data on land values, solar resource potential, and other factors that can influence a project's success. The risk and return profile of solar investments is generally attractive. While all investments carry some level of risk, solar projects often benefit from long-term power purchase agreements  (PPAs) with utilities or corporate entities, providing stable and predictable cash flows . Additionally, the ongoing decline in solar technology costs and the increasing competitiveness of solar power can contribute to higher returns on investment. Public and private financing play a crucial role in the development of solar projects. Public funding, in the form of grants, loans, and tax incentives, can help reduce the initial capital costs of solar projects. Private financing, on the other hand, can provide the necessary capital for project development and expansion. Various financial instruments , including equity, debt, and yieldcos, can be used to finance solar projects. Emerging investment trends in the solar sector include the growing interest in community solar projects and the increasing use of green bonds for financing solar projects. Community solar  projects allow multiple investors to share in the benefits of a single solar project, making solar investment more accessible. Green bonds , on the other hand, are debt securities issued to finance environmentally friendly projects, including solar projects. Profitable solar investments abound in the industry. For instance, current LandGate user NextEra Energy, one of the top solar developers in the US and the world, has generated impressive returns for its investors. The company's focus on renewable energy , particularly solar and wind, has been a key driver of its strong performance. Using Tools & Technology to Ride the Solar Surge Solar farm developers and investors of utility-scale solar can leverage the comprehensive site selection and layout tools , data, insights into queued solar farms, and market forecasting offered by LandGate to capitalize on the rising trend of solar power. LandGate's solar development analysis tools and solar mapping software provide detailed information about a potential project site and allows a developer to evaluate solar farms in minutes, including land values, topography, proximity to transmission lines, solar infrastructure data, and local zoning regulations. LandGate has also provided detailed analyses of the best states for solar farms in the country. These factors are critical in determining the feasibility and profitability of a solar project. For example, a site with high land values might offer excellent solar resource potential but could also lead to higher project costs. Similarly, a site located far from transmission lines could incur additional costs for grid connection. The data provided by LandGate is already being utilized by the top utility scale solar developers, and can further assist solar development companies in making informed investment decisions based on cutting edge solar farm economics. This includes data on solar resource potential, which can help estimate a project's energy yield. Additionally, data on local electricity prices and renewable energy policies can provide insights into the potential revenue and incentives for a project. Market forecasting  is another valuable feature offered by LandGate’s energy data platform. By analyzing trends in solar technology costs, current US solar projects in the queue, electricity prices, and policy developments, LandGate can help predict future market conditions. This can be invaluable in planning long-term investments and identifying potential risks and opportunities. For instance, if market forecasts indicate a continued decline in solar technology costs, it might be advantageous to invest in a project now to lock in lower equipment prices. On the other hand, if forecasts suggest that renewable energy policies might become less favorable in the future, it might be prudent to expedite project development to take advantage of current incentives. To learn more about how to access and use LandGate’s data and tools for development of and investment in solar projects, schedule time to talk  with our dedicated energy team.

In recent years, Wyoming has emerged as a prime destination for data center development, thanks to its expansive landscapes, low energy costs, and business-friendly policies. As the demand for data storage continues to surge, property owners have a unique opportunity to capitalize on this trend by leasing their land for data center projects. By listing properties on LandGate's marketplace, government and private property owners can connect with leading tech companies eager to invest in Wyoming's promising landscape for data center development. This strategic decision not only maximizes property value but also positions owners at the forefront of the state's burgeoning tech industry. Wyoming's Rise as a Data Center Leader Wyoming's data center development has accelerated over the past decade, driven by a combination of low energy costs, abundant renewable resources, and a favorable regulatory environment. The state's lack of a corporate income tax is particularly attractive to tech companies looking to establish data centers. With significant investments in renewable energy, especially wind power, Wyoming offers sustainable and cost-effective energy solutions that are crucial for powering large-scale data operations. Additionally, its geographic location reduces risks associated with natural disasters, making it a secure choice for data storage and processing. Wyoming has emerged as a leader in data center development. The state is actively enhancing its telecommunications infrastructure to ensure high-speed internet access, essential for modern data centers. Furthermore, state policies designed to attract tech businesses create a conducive environment for growth. This combination of low operating costs, a commitment to sustainability, and a business-friendly approach positions Wyoming as an attractive hub for data centers , appealing to companies seeking reliable and economically viable locations for their operations. With the High Plains business park as an attractive location for new data center development, a multitude of data centers have been announced in the area and are met with a competitive business environment.   Data Center Developments in Wyoming Wyoming is quickly becoming a prime location for data center development, driven by significant investments from leading tech companies. Recent announcements, such as Meta's $800 million data center and a vast 945-acre project in Cheyenne, hint at substantial economic growth and job creation potential for the region. Projections suggest that each major data center could create hundreds, possibly thousands, of jobs during both construction and ongoing operations. This development presents landowners with a unique chance to gain financially through selling or leasing property for data centers . What Makes a Property Suitable for a Data Center? As is true with any other type of real estate, the most important factor that determines whether or not a specific property qualifies for a data center  is location. Data centers need power quickly, making properties near substations and transmission lines ideal. However, this isn't a 'dealbreaker,' as large data center developments often require power grid upgrades and their own substation. Developers may invest in new substation construction for projects. Access to fiber optic infrastructure is also important. While fiber is improving and often found in developed areas, lack of immediate access isn't a 'dealbreaker.' Developers can bring fiber to a site if there's space in the public right-of-way. However, a shorter fiber path might need to cross privately-owned parcels, requiring easements from owners, which can be time-consuming. In terms of property size for data centers, smaller data centers can operate within buildings ranging from 5,000 to 10,000 square feet, but larger enterprise and hyperscale data centers significantly exceed this range and can be up to 300 acres. Today's standard 40+ megawatt data centers require at least 10 acres of land, although 50+ acres is considered ideal. The political climate of the region where a property is located can have a significant impact on data center development. Favorable tax laws, government incentives, and policies that promote renewable energy usage can make a property more appealing for a data center. In particular, Wyoming's tax-friendly environment, characterized by the absence of corporate and personal income taxes, combined with low energy costs, makes it an attractive destination for data center developers. The state's plentiful renewable energy sources, especially wind and hydroelectric power, bolster the operational efficiency of data centers. The southeastern region, renowned for its strong wind resources, is particularly ideal for large-scale projects requiring dependable, clean energy. A prime example of a property ideal for hosting a data center is this parcel listed for lease in Cheyenne, WY on LandGate’s marketplace : This 388 acre site is perfectly positioned for data center development with three long-haul fiber optic lines crossing the property. It is also located adjacent to a transmission line and sits just a quarter mile from a substation. Additionally, this property is in close proximity to significant data center developments from Meta, Microsoft, Lunavi and others further advancing the High Plains Business Park as an emerging data center hub. Capitalizing on Data Center Demand: Leasing or Selling Opportunities Public and private property owners in Wyoming stand at the forefront of a unique economic wave driven by the rapidly increasing demand for data centers . With the state's favorable conditions and growth potential, landowners can capitalize on this trend through leasing or selling their land for data center development. This initiative not only promises significant revenue streams through lease payments, but also contributes to the local economy by creating jobs and fostering technology-driven growth in the region. As the demand for data storage continues to rise, there's no better time for property owners in Wyoming and across the country to get involved and reap the benefits of this growing market. Listing your property on LandGate’s marketplace is an efficient way to showcase its potential to tech companies seeking strategic locations for their data operations. LandGate’s marketplace offers the advantage of broad visibility and easy access to a large pool of interested lessees actively seeking suitable sites for data center development. With no costs for listing or obligations to accept any offers, property owners can explore this opportunity without financial risk.

When it comes to selling or leasing land, choosing the right platform to list your property can significantly impact the speed and success of the sale. Online real estate marketplaces are among the most popular options, offering a wide reach and convenient access for potential buyers. Ultimately, the best place to list your land will depend on your specific goals, the characteristics of the property, and the target market you aim to reach. Property owners can list their land for sale or for lease for free on LandGate's marketplace with no obligation to accept any offers! Find your property on our map to get started: Where is the Best Place to List Your Land? The best place to list your land depends on several key factors. First, consider the potential audience size and demographic of each platform. For instance, online real estate sites often attract serious buyers interested in property investment, while social media platforms can reach a diverse crowd, including those with a more casual interest in land acquisition. Secondly, evaluate the costs associated with each listing method. Some websites may charge a fee for premium listings or offer different pricing tiers based on the visibility and promotional options. On the other hand, social media postings are generally free but may require additional investment in paid advertising to enhance reach. Furthermore, consider the ease of use and support offered by the platform. A user-friendly interface and access to customer support can simplify the listing process. Additionally, some platforms provide tools for tracking engagement metrics or analytics, which can offer valuable insights into the effectiveness of your listing. Where to List Land for Sale Property owners can list their land for sale on various social media platforms and online marketplaces, such as Zillow, Craigslist, or LandGate. Ultimately, the best way to get the most value from your land for sale is to generate competition by getting as many eyes on your property as possible. LandGate's marketplace allows landowners to list their land for sale at no cost and with no obligation to accept any offers: In addition to listing your land for sale on online marketplaces, consider additional marketing efforts to get your property in front of more potential buyers. You can promote your listing on social media, place flyers in local businesses, offer owner financing, or auction your property. Where to List Land for Lease For landowners interested in monetizing their land without selling it outright, leasing is a great option to consider. There are various ways to make money on your land  through leasing opportunities. Lease agreements are completely negotiable and vary depending on the type of lease. Choosing a platform to list your land for lease depends on the type of land that you own and your long-term goals. Landowners can list their land for lease for recreation, agriculture, carbon credits, data centers , and renewable energy for free on LandGate's marketplace. If you own land but are unsure what it is best-suited for, get a free property report by finding your land on LandGate's map and check out the value index scores. LandGate's value index scores evaluate your property's suitability for various lease opportunities scored on a scale of 0-100. The highest value index scores reveals the highest and best use of your land for lease: How to Find Land for Sale You can find land for sale on various online marketplaces and social media platforms. If you're interested in purchasing land for a specific purpose, consider working with a local real estate agent that can guide you through the purchasing process and help you find available properties that fit your needs. LandGate's marketplace is a great place to find land for sale across the country. Viewing listings is completely free, and each listing is embedded with LandGate's proprietary data, allowing you to conduct due diligence at a glance. Listings can be filtered by price, location, acreage, and more, allowing you to find your perfect plot with just a few clicks:

Valuing commercial real estate is a crucial skill for investors, developers, and real estate professionals. This process, while complex, provides key insights that inform buying, selling, and leasing decisions. Understanding the true worth of a commercial property ensures informed investment choices and helps assess potential risks and returns. Several valuation methods, including income capitalization, sales comparison, and cost approaches, can be employed to determine a property's market value. In this resource, we will explore these methods in detail, offering a comprehensive guide to accurately evaluate commercial real estate assets. How to Value Commercial Real Estate Assessing the value of commercial property is crucial for informed investment decisions. Whether you're a landlord, property owner, business complex owner, or seasoned real estate investor, understanding your property's listing price is vital. Unlike residential valuations, commercial property appraisals are more complex, with fluctuating values and additional intricacies that can complicate the process. Mastering various valuation methods provides a strategic advantage in achieving success in commercial investments. The more you know about a commercial property, the better you can assess it's value. LandApp is an all-in-one property intelligence tool for commercial real estate that allows you to evaluate properties nationwide. Learn more or subscribe to LandApp for $10 per month today: Commercial Real Estate Valuation Methods The five main ways to value commercial real estate are the cost approach, the sales comparison approach, the income approach, the gross rent multiplier approach, and the price per square foot approach. Whether you’re buying, selling, or investing in commercial real estate , understanding each of these methods is the best way to determine which one makes the most sense for your property. 1) Cost Approach The Cost Approach method for valuing commercial real estate involves calculating the expense of reconstructing the property from the ground up. This method takes into account the current value of the land, labor, construction materials, and any other costs associated with replacing the existing structure. It operates on the assumption that a property's value is equivalent to its reconstruction cost. This approach is particularly useful when a property has undergone significant upgrades that enhance its value. It can be difficult to accurately calculate the depreciation of older buildings or estimate the land value in a fully developed location. 2) Sales Comparison Approach The Sales Comparison Approach is commonly used to value commercial property . It relies on recent sales data to determine the value of a commercial property. The sales comparison approach is ideally suited for properties situated among similar ones in areas with a high volume of commercial real estate transactions. When current sales data is available, it can provide an approximate valuation for a property, provided the size, age, location, neighborhood demographics, and condition of the buildings are comparable. However, commercial property appraisers may occasionally need to seek comparisons outside the immediate market area, which can lead to unreliable data. It's crucial to consider any significant differences in such cases. 3) Income Approach The Income Approach, also known as the income capitalization approach, is primarily used for income-generating properties. It provides commercial real estate investors with an estimate of potential earnings from a property. Investors often analyze data from comparable properties along with costs related to revenue generation, such as routine maintenance needed to keep the building operational. Although this approach to determining value seems straightforward, the underlying logic can be complex. Calculating the Net Operating Income (NOI) requires assumptions about factors such as rental growth rates, occupancy levels, market conditions, cost increases, and necessary repairs and maintenance. Often, these assumptions pertain to events several years into the future. Adjustments to the capitalization rate, or cap rate, can be made to reflect specific property features like exterior quality or current tenants, compared to similar properties. If an accurate cap rate cannot be determined, comparable properties in the area can be used for estimation. 4) Gross Rent Multiplier Another method of commercial real estate valuation is the Gross Rent Multiplier approach. The gross rent multiplier (GRM) formula is a method used to assess the value of commercial properties, similar to the income approach. Unlike the latter, the GRM focuses on the property’s gross rent and does not factor in maintenance expenses or vacancy losses. To determine the value of an investment property using this method, follow two steps. First, calculate the GRM from recent sales of comparable properties by dividing the sales price by the annual gross rent. Once you have the GRM for similar properties, apply it to the estimated gross rent of the property under evaluation. For instance, if the GRM for comparable properties is 10 and a property’s gross income is $500,000, its value could be reasonably estimated at $5,000,000. 5) Price Per Square Foot To assess the value of an office, industrial, or retail property, one effective method is to multiply the usable square footage by the price per square foot. While this approach provides a preliminary estimate of investment potential, it is often complemented by other methods, such as the income or sales approach, for a more comprehensive evaluation of a property's worth. If a commercial building lacks a listed price per square foot, examine similar properties in the vicinity. You can then adjust this property's value based on factors like age, condition, location, and potential uses. Considerations for Valuing Commercial Real Estate When evaluating which method is best for valuing commercial properties, remember that the ideal method depends on your business's specific needs and long-term objectives. For instance, comparing selling prices or cap rates for a rural property with no nearby comparable buildings is futile. In such cases, the cost approach may be more appropriate. Consider the property's location, condition, and income potential. Then, determine which method best captures its overall value. You can also employ multiple tools to create a more accurate assessment of the building's worth. Understanding current market conditions is crucial when valuing commercial real estate. Factors such as economic trends, interest rates, inflation, and local market dynamics can significantly impact property values. An expansive market with high demand and limited supply may drive property values up, whereas a saturated market with abundant supply could depress prices. Being aware of these conditions helps investors and appraisers to adjust their valuation methods accordingly, providing a more accurate property assessment. Each commercial property is unique, and its specific attributes should be accounted for in the valuation process. Elements such as the building's age, architectural design, quality of construction, and any recent renovations can influence its market value. Moreover, the property's usability, zoning  regulations, and potential for redevelopment play critical roles. It's essential to evaluate how these individual factors align with available market data to arrive at an informed estimate of the property's worth. The financial performance of a commercial property is also a critical consideration. Analyzing financial statements, rent rolls, expense reports, and historical financial performance records can reveal insights into the property's profitability and cash flow potential. Additionally, it is important to assess the stability and quality of the tenant base, as long-term leases with reputable tenants can enhance the attractiveness of the investment. Evaluating these characteristics allows investors to better understand the sustainable income prospects of a commercial property. To accurately assess the property's value, consider engaging a third-party commercial real estate appraiser for a professional evaluation. The appraiser's main role is to deliver impartial insights into the property's worth, offering an unbiased valuation free from subjective opinions. LandApp: All-in-One Tool for Commercial Real Estate LandApp is a platform crafted to streamline and elevate the commercial real estate  experience for investors, brokers, and property managers. By combining powerful tools with intuitive features, LandApp simplifies the intricacies of due diligence and management within the commercial real estate sector. Whether you're seeking new investment opportunities or managing a diverse portfolio, LandApp offers a comprehensive solution to fulfill your needs. With LandApp, you can learn more about your commercial properties or commercial properties that you're interested in purchasing and their unique features and potential risks. LandApp helps commercial property owners and investors identify opportunities for adding value through renewable energy and data center lease opportunities. Additionally, it provides   risk indexes  to help you conduct due diligence and identify any environmental or man-made risks associated with a commercial property. Get started today for just $10 monthly:

How to Successfully Leverage the IRA for Renewable Energy Tax Credits A Collaboration between KPMG and LandGate Navigating the financial landscape of renewable energy can be challenging, but it is essential for developers to leverage available tax incentives at both state and federal levels. These incentives are designed to support and accelerate the growth of clean energy projects, making it more feasible and attractive for developers to invest in renewable technologies. Whether you're working on solar, wind, or other renewable projects, understanding the various tax benefits can significantly enhance your project's financial viability and overall success.  You can also click here to contact KPMG + LandGate directly. IRA and Federal Developer Tax Credits The Inflation Reduction Act (IRA), ratified by the national government in 2022, functions as a key tool in the battle against inflation and the support of domestic energy production. The contributes a minimum of $4 billion through the Advanced Energy Project Credit, a designated credit of up to 30% for forward-thinking energy projects. This generous financial motivation has driven significant investment and sparked creativity in the solar industry. The IRA represents the most significant climate investment in the history of the United States. It aims to propel industries towards adopting cleaner and more ecologically sound energy sources while developing projects within defined energy communities. Energy Communities IRA Energy Communities are areas designated under the Inflation Reduction Act that are eligible for specific funding and incentives related to energy.  An energy community can also be defined as one where fossil fuels provide about 25% of the tax revenue locally. Nationwide, fossil fuels contribute about 138 billion USD in revenue to all of the following governments: tribal, federal, local and state. Brownfields A Brownfield Community is a term used to describe properties that are presumed or confirmed to have environmental contamination from past activities, which can hinder growth or redevelopment. These properties are identified by the US Environmental Protection Agency (EPA), making them qualified for financial assistance to support redevelopment and cleanup initiatives. As the areas these properties occupy are generally smaller, they are often ideal for developers of community solar and BESS. Notice 2023-29 created a “safe harbor” for accepting Brownfield sites that meet at least one of the following conditions:   The site was previously assessed through federal, state, territory, or federally recognized Indian tribal brownfield resources as meeting the definition of a Brownfield  Sites on the Brownfields Properties list on EPA’s “Cleanups in My Community” webpage or on similar webpages  A Phase II Assessment has been completed and confirmed the presence of hazardous substances, pollutants, or contaminants  For projects less than or equal to 5MW (AC), a Phase I Assessment has been completed Statistical Areas The Statistical Areas energy community designation applies to renewable energy projects located in MSAs (Metropolitan Statistical Areas) or non-MSAs that have, at any time since 2009, met both of the following two criteria:  “0.17 percent or greater direct employment or at least 25 percent of local tax revenues  related to the extraction, processing, transport, or storage of coal, oil, or natural gas”.  Unemployment rate is equal to or above the previous year’s national average.  Coal Closures The Coal Closure category includes any census tracts, or adjoining tracts, where either a coal power plant closed after December 31, 2009, or a coal mine closed after December 31, 1999.  While the definition of these tracts did not change, the IRS did provide information to help confirm whether a project may be in a qualifying Coal Closure tract.  The tract outlines used will be from the 2020 Decennial Census and will be updated every 10 years. It was also stated that census tracts are considered adjoining if their boundaries meet at a single point (ex. If 4 square-shaped census tracts all met at one corner, they would all be considered adjoining tracts). The IRS provided a table  of tracts that they believe qualify.  The qualifying coal closure tracts are quite large and make up about 15% of the overall area in the United States. This makes them attractive targets for large-scale solar and wind project developers. Low-Income Communities “Low-Income Communities” are defined as residential buildings that participate in one of several programs listed in the IRA and as part of a low-income economic benefit project if at least 50% of the financial benefits of the electricity produced are provided to households with income of less than 200% of the poverty line or less than 80% of area median income.  The IRA would provide an enhanced ITC for wind and solar projects that are located in a low-income community and have a nameplate capacity of 5 MW(ac) or less, and for which the Secretary makes an allocation of environmental justice solar capacity limitation.  Indian Land Projects located on Indian Land are eligible for the enhanced Investment Tax Credit (ITC) when they meet specific criteria outlined in the IRA. This provision aims to empower tribal communities by promoting renewable energy development within their territories. By supporting solar and wind projects in these areas, the IRA helps to enhance energy sovereignty and provide economic opportunities, while also addressing the unique challenges faced by Indigenous populations in accessing clean energy resources. Category 3: Low-Income Residential Properties Category 3: Low-Income Residential Properties includes residential buildings that participate in federal programs designed to assist low-income households. By targeting these properties, the IRA facilitates investments in renewable energy systems that can significantly reduce energy costs for residents. This approach not only improves access to clean energy but also fosters energy resilience in communities that often experience higher energy burdens. Additionally, it helps to ensure that the financial benefits of clean energy advancements are equitably distributed among those most in need Category 4: Low-Income Economic Benefit Project Category 4: Low-Income Economic Benefit Projects encompasses initiatives where at least 50% of the financial benefits from electricity production are directed to households with incomes below 200% of the poverty line or less than 80% of the area median income. This category emphasizes the importance of creating sustainable energy solutions that prioritize economic equity. By incentivizing projects that focus on low-income communities, the IRA not only fosters social responsibility but also helps stimulate local economies, creating jobs and promoting investment in renewable technologies. Domestic Content Bonus Credit The Domestic Content Bonus Credit further enhances the incentives for renewable energy projects by encouraging the use of domestically sourced materials and equipment. This provision aims to strengthen U.S. manufacturing and supply chains, promoting economic growth while reducing reliance on imported components. By qualifying for this bonus credit, developers can enhance the economic viability of their projects, contributing to local job creation and fostering a more resilient energy infrastructure. This aligns with broader objectives of promoting sustainability and energy independence within the framework of the IRA. State Specific Incentives Many states have implemented a variety of incentives to promote the development and adoption of clean energy sources. These incentives can take the form of tax credits, grants, rebates, and renewable energy credit (REC) programs, each designed to encourage investments in solar, wind, and other renewable technologies.  California Tax Incentives for Renewable Development California  offers a robust set of incentives for renewable energy, including the California Renewable Portfolio Standard (RPS), which mandates that a significant percentage of the state’s energy must come from renewable sources. Additionally, California's Cap-and-Trade Program allows entities to purchase and trade carbon credits, which can benefit renewable energy projects. New York Tax Incentives for Renewable Development New York's Clean Energy Standard requires that 70% of the state's electricity come from renewable sources by 2030. The state also has a Renewable Energy Credit (REC) program, allowing projects to earn RECs for each megawatt-hour of renewable energy generated. These credits can be sold to utilities to help them meet their renewable energy goals. Additionally, New York City actively supports utility-scale renewable projects through the NYC Clean Energy program, which streamlines the approval process and offers financial incentives for large installations. This includes tax incentives for renewable energy projects that contribute to the city's clean energy goals. Texas Tax Incentives for Renewable Development Texas  has a unique approach to renewable energy credits, primarily through its Competitive Renewable Energy Zones (CREZ) initiative, which promotes wind and solar development. While the state lacks a formal REC program, its deregulated electricity market enables renewable energy producers to sell power directly, capitalizing on the growing demand for clean energy and often achieving favorable pricing for their projects. In San Antonio, CPS Energy supports utility-scale solar initiatives through various contracts and local incentives, including property tax abatements for renewable energy developments. These efforts contribute to a supportive environment for large projects while enhancing the city’s renewable energy portfolio. Utility Scale Incentives Under the Inflation Reduction Act, utility-scale solar energy is eligible for the production tax credit (PTC) again, which has been a key tax credit for stimulating the growth of wind resources over the past decade. Solar developers now have the choice of either qualifying for the Alternative Investment Tax Credit (ITC), or receiving a percentage back in tax credits based on the amount of capital spent on tangible equipment or the PTC, which is based on the total energy generated over the first 10 years multiplied by the PTC base rate ($/MWh) and any bonuses received.  The Investment Tax Credit (ITC) has been set to 30% and extended through 2035 before tapering off to 26% in 2033 and 22% in 2034. Previous to the IRA, the ITC had already begun its first phasedown from 30% in 2021 to 2026% in 2022. Community Solar Incentives A community solar  farm is a shared solar power installation that lets many people benefit from one solar array. A community solar farm is a shared solar power installation that enables multiple participants to benefit from a single solar array. This model is designed to provide access to solar energy for individuals and businesses that may not have the means or suitable property to install solar panels on their own. In a community solar farm, a large-scale solar photovoltaic (PV) system is typically installed in a centralized location, such as an open field, rooftop, or dedicated facility. Unlike utility-scale solar projects, which are large installations generating power primarily for the grid and are usually owned by utilities or large companies, community solar projects allow participants to invest in or subscribe to a portion of the energy produced, making solar energy more accessible without the need for personal installations. For instance, Minnesota's Community Solar Garden program offers various incentives, including a Solar Rewards program that provides financial benefits to developers of community solar projects. Subscribers receive credits on their utility bills based on the energy produced by the solar garden, enhancing financial accessibility for participants. Similarly, Colorado has enacted the Community Solar Gardens Act, which allows customers to subscribe to community solar projects and receive utility bill credits. This program also offers financial incentives for developers, such as the ability to earn Renewable Energy Credits (RECs) and grants from the Colorado Energy Office specifically for low-income community solar initiatives. Together, these programs illustrate how community solar farms can broaden access to renewable energy and foster local engagement.

Searching for the perfect property can often feel like embarking on a treasure hunt, filled with anticipation, excitement, and sometimes a bit of frustration. In the ever-evolving real estate market, finding a place that truly feels like home—or the ideal investment opportunity—requires more than just luck. It demands a strategic approach and a well-prepared mindset.  Whether you're a first-time buyer or a seasoned investor, being informed and ready can make all the difference in turning your property dreams into reality. In this blog, we unveil 10 must-try strategies that will not only simplify your search but also enhance your chances of success.  LandGate has changed the real estate market by providing different investment property search filters and listings not found on traditional listing marketplaces! Investing in real estate  is changing from traditional house flipping to finding a property with the potential to generate lease revenue from renewable energy development. Understanding Different Types of Real Estate There are many different types of real estate for property owners to choose from that all benefit the buyer in different ways. For example, first-time home buyers might be interested in locating a dream house near specific amenities like schools, shopping centers, and malls. On LandGate’s marketplace, we provide access to this data for all listings. Simply click on a listing, and click on property features to view an amenity summary as seen below. For property investors looking to generate different streams of income, LandGate provides value and risk index scores for properties listed for sale. This is the easiest way to perform due diligence on potential investment properties without having to commit to an offer. We provide value index scores  for: Land value Solar energy development Wind energy development EV charging development Energy storage development Carbon credits Carbon sequestration Minerals Mining Water Data center development Different types of resources present on the property can be valuable for long-term leases for renewable energy development, agricultural usage, or data center development. Depending on the goals of the property investor, the revenue options available can also be taken advantage of on the LandGate platform. Our marketplace is the listing market to reach reputable renewable energy developers looking for potential build sites.  Define Your Budget Begin by assessing your financial situation to set a realistic budget. Consider all potential costs, including mortgage, taxes, and maintenance, to avoid financial strain. The return on investment for some property buyers can be evaluated for lease options.  For example, if you're considering a solar energy lease, you can generate revenue over 25 to 50 years. The lease payment price range, from the start through the option period to the active lease, can be discussed between the developer and property owner. Depending on investor goals, you can sell these lease payments upfront for a lump sum to buy another investment property and repeat the cycle. House flippers or rental properties require more upfront money to achieve the desired return on investment. A primary obstacle is underestimating renovation costs. Flippers often face unexpected expenses due to hidden structural issues or more extensive repairs than anticipated, eroding potential profits and even leading to losses. Timing is crucial in flipping and rentals.  Buying and selling at the right time significantly affects profitability. Holding a property too long increases carrying costs, and diminishing returns, while selling too quickly in a down market might not yield desired profits. Rental popularity fluctuates, so location and pricing may need adjustments to reflect the market. Working with the Right Real Estate Agent Engage a reliable real estate agent who understands your needs and the local market. Their expertise provides valuable insights and simplifies the property search. If renewable energy leases are your investment goal, choose a realtor with specific knowledge in this area. These contracts can be complex, and negotiations challenging without the right expertise. For new home buyers moving to a new location, an agent familiar with the area can help find the perfect property. Access to exclusive listings not available to the public gives you an edge in finding your dream home before others. An agent's negotiation skills are crucial, especially for first-time buyers. With an agent, you'll have a skilled advocate to secure the best terms and prices. The home-buying process involves extensive paperwork and legal requirements. A knowledgeable agent will guide you, ensuring all documents are correctly completed and submitted, preventing potential legal issues. Understand Market Trends for Property Searching Understanding market trends is crucial for property buyers as it can significantly influence their purchasing decisions and financial outcomes. Staying informed about real estate market trends helps buyers make strategic choices, ensuring they invest wisely and maximize their returns. To begin with, buyers should focus on researching and interpreting key market data, such as price trends, inventory levels, and interest rates. Price trends can indicate whether the market is trending upwards or downwards, helping buyers decide if it's a good time to enter the market or if they should wait for prices to adjust. Inventory levels offer insights into the supply-demand balance; a low inventory might suggest a seller's market, while a high inventory could indicate more negotiation power for buyers. Interest rates are also a critical factor, as they directly affect mortgage affordability and overall purchasing power. Economic indicators and local developments play a significant role in shaping market conditions. For instance, employment rates, consumer confidence, and GDP growth can impact housing demand. Local developments, such as new infrastructure projects or business investments, can enhance a neighborhood's appeal, potentially increasing property values over time. By leveraging this information, buyers can time their purchases more effectively. Understanding whether the market favors buyers or sellers allows for strategic negotiations, potentially leading to better deals. Moreover, being informed about upcoming local developments or economic shifts can position buyers to capitalize on future property value increases. Prioritize Needs vs. Wants Prioritizing needs versus wants is a vital strategy for property buyers that can streamline the home-buying process and lead to more satisfying outcomes. This involves distinguishing between essential features that a property must have and those that would be nice extras. By doing so, buyers can focus their search more effectively and avoid falling into the trap of buyer’s remorse. The first step is to create a clear list of must-haves. These are the non-negotiable features that a property must possess to meet the buyer’s basic requirements. Common must-haves often include factors such as location—proximity to work, schools, or family; the number of bedrooms and bathrooms to accommodate the household; and staying within a set budget to ensure financial stability. As the search progresses, it’s important for buyers to reassess their priorities. The real estate market is dynamic, and flexibility can be beneficial. Buyers might find that certain nice-to-haves become more feasible as they explore options, or they may need to adjust their must-haves based on market availability. Regularly revisiting the list of priorities ensures that the focus remains sharp and aligned with current circumstances. Prioritizing needs versus wants as a real estate investor can change depending on your investment goals. Property due diligence is easy to do with LandGate’s LandApp tool! Once you understand what renewable energy developers are looking for , you can search for properties that fit those criteria. Attend Open Houses for Home Buyers Attending open houses is a valuable strategy for property buyers, offering benefits that enhance the buying process. The primary advantage is gaining firsthand experience of the property. Walking through a home gives buyers a true sense of the space, layout, and condition, which photos or virtual tours may not convey. This experience helps determine if a property meets needs in terms of space, lighting, and flow. Another benefit is assessing the neighborhood. Open houses let buyers explore the area, evaluate the community vibe, and consider proximity to schools, parks, and shopping centers. Understanding the neighborhood ensures the property aligns with lifestyle priorities. Open houses allow hands-on comparison of different properties. By visiting multiple homes, buyers can identify valued features and compare homes against each other, clarifying priorities and preferences. During open houses, buyers can ask questions directly to the listing agent or homeowner—an excellent chance to inquire about the property's history, renovations, and any issues. Observing details such as the condition of appliances and fixtures provides insights into maintenance. Open houses offer a glimpse into the local market, helping buyers gauge interest and competition. Noting the number of attendees and interactions gives clues about the property's desirability. To maximize open houses, buyers should take notes and photos for later comparison. Documenting each property helps track impressions and specifics, making it easier to review and narrow choices later. Stay Organized: Keep Track of Potential Properties Staying organized is a crucial strategy for property buyers and investors, ensuring that the property or home-buying process is as smooth and stress-free as possible. Keeping track of property visits, offers, and communications with agents helps buyers manage the extensive amount of information involved in purchasing a home and makes it easier to make informed decisions. To effectively stay organized, buyers can employ various tools like spreadsheets, apps, or traditional notebooks. LandGate’s marketplace and other similar marketplaces offer tools like ‘favoriting’ listings to keep track of within the platform. You can even save specific search filters to be able to receive notifications for new listings that fit those criteria.  One of the main benefits of staying organized is the reduction of stress. With so many moving parts in the property and home-buying process, a clear and organized system helps ensure that no detail is overlooked, whether it involves scheduling a home inspection or remembering a specific offer deadline. This organization allows buyers to focus on evaluating properties and making strategic decisions rather than being bogged down by logistical challenges. To set up an effective tracking system, buyers should start by creating a central place for all documents and notes, whether digital or physical. Establishing a calendar or timeline to track deadlines, appointments, and follow-ups is essential. This calendar should include key dates like offer submissions, inspection schedules, and mortgage application deadlines. Setting up reminders for these can prevent crucial tasks from slipping through the cracks. Be Ready to Move Fast In competitive real estate markets, the ability to move quickly is essential for property buyers aiming to secure their dream home or potential investment property. Quick decision-making can make the difference between winning a property bid or losing out to another buyer. Preparing to act fast requires several key steps. Firstly, securing pre-approval for financing is crucial. This not only gives buyers a clear understanding of their budget but also demonstrates to sellers that they are serious and financially prepared. Pre-approval can significantly speed up the purchasing process, making the buyer more appealing in a competitive market. Being decisive offers significant advantages, such as securing desirable properties before others have the chance to make an offer. It also helps avoid bidding wars, which can drive prices up and complicate negotiations. A quick, confident offer can set a buyer apart in the eyes of the seller. Having a trusted advisor or real estate agent to consult with can be invaluable. An experienced professional can provide insights on the market, guide negotiations, and help assess whether a property meets all the pre-determined criteria. This expert guidance can enhance confidence in making quick decisions. Conduct Thorough Inspections for Interested Properties There are different ways to go about property due diligence. For home buyers, it is important to have property inspected by professionals to make sure a home is safe and suitable. But have you ever considered potential risks that could affect the property? LandGate provides these types of insights for property nationwide. We have gathered data and analytics for risks  such as: Oil and gas contamination Industrial contamination Electricity blackout Cost of Electricity Electrical Connection Drought Natural disasters like hurricanes, wildfires, tornados, hail, and flood These types of risks should be discussed during the property search process so you are not blindsided after you have made an offer. Gaining access to these predictive analytics with data to back it up, will help you make more informed decisions about your property. This will not only benefit home buyers but also real estate investors. Utilizing the Right Listing Marketplace It is important to use the right listing marketplace to find your next investment property or home. LandGate is a well-rounded listing marketplace that provides a wide range of listings from houses, business buildings, large plots of land, ranches, farms, and more. Get started finding your ideal property now!

In the dynamic world of real estate and land investment, having access to comprehensive and accurate data can make all the difference. Enter LandGate, a leading provider that offers robust data solutions and an online marketplace for U.S. commercial land and its resources. Whether you're a seasoned land investor or a property owner looking to maximize your asset's potential, understanding how to leverage LandGate's data is crucial.  All of the information following can be found in one of two ways: a free property report or subscribing to our LandApp tool. We offer a full breakdown of property data analytics for parcels across the United States. Users can receive one free property report for one specific property or they can subscribe to our LandApp tool to gain access to this information for every property nationwide.  This is something that makes us stand out from other property tools in the market. We provide property owners, land professionals, land investors, real estate agents, and others access to the most comprehensive property information available. Viewing the potential value associated with the property is the best way to maximize your profits on a particular property. Whether you inherited a piece of land or are looking for your next investment opportunity, you can feel confident using our data to make smarter decisions! The Importance of Comprehensive Land Data In today's competitive real estate market, having detailed insights into land value and potential is essential. For investors and property owners, understanding the nuances of land data can mean the difference between a profitable venture and a missed opportunity.  Land data provides critical information on resource availability, land suitability for various uses, and potential revenue streams. With the rise of renewable energy and sustainable practices, comprehensive land data helps identify opportunities in solar, wind, and other green energy sectors. LandGate provides various land data points for proper due diligence found in our value index scores : Land usage categories Cropland irrigation percent Relative water stress Annual precipitation Buildable acreage Proximity to electrical infrastructure Renewable energy potential lease estimates ($/ac/yr) EV charging site potential Tree carbon credits, soil carbon credits, and reforestation credits Mineral estimated lease value ($/acre) Nearby oil and gas wells Mining locations and minerals being mined in those locations Development potential for energy storage and data centers This type of information has never been readily available to the public in the way we have provided. Our data scientists work very hard to gather all the information necessary to provide quantified scores on a scale from 0 to 100 to be clear on a property’s potential to have value for specific resources.  How LandGate Stands Out in the Land Data Market We have established ourselves as a powerhouse in the land data industry by combining cutting-edge technology with a user-centric platform. We offer detailed property reports, value index scores, and risk assessments, ensuring users have all the information they need to make informed decisions. By tapping into our extensive database, users can explore the full potential of their land, from renewable energy projects to resource leasing opportunities. We pair this type of data with the opportunity for property owners to then list their properties for available lease options that fit their goals completely free. For property investors, you can view for sale land listings right now on our marketplace and see the value index scores associated with that property. You don’t get this same transparency of information from any other listing marketplace.  Maximizing Profit and Minimizing Risk with LandGate Our LandApp tool is designed to help users unlock maximum value from properties they are performing due diligence on while minimizing associated risks. Through its comprehensive property reports, users can access detailed land evaluations, including risk index scores and resource value estimates. These insights enable investors and property owners to make strategic decisions that optimize returns, whether through direct sales, leases, or development projects. The risk index scores  we provide subscribers allow for thorough due diligence when weighing the pros and cons of a potential investment. The risk indexes we currently provide are: Oil & gas contamination Industrial contamination Electricity blackout Cost of electricity Electrical connection Drought Wildfire Natural earthquakes Induces earthquakes Hurricane Tornado Straight line wind Hail Flood Success Stories and Real-world Applications LandGate has been instrumental in numerous success stories across the U.S., helping various stakeholders achieve their financial and environmental goals. For instance, the State of New Mexico  successfully leveraged our platform to evaluate renewable energy potential and secure multiple leases for clean energy projects. This generated significant revenue and contributed to the state's sustainability objectives. Future Trends in Land Data and LandGate's Innovations The future of land data is promising, with emerging technologies and trends shaping the industry landscape. LandGate is at the forefront of these innovations, continuously updating its platform to include new data sets and analytics tools. With AI and machine learning advancements, LandGate aims to provide even deeper insights, helping users stay ahead of market trends and capitalize on emerging opportunities. Interested in Maximing Profit on Your Property? As the real estate landscape evolves, leveraging comprehensive land data is more important than ever. LandGate offers invaluable tools that empower land investors and property owners to maximize profit and minimize risk. Explore the potential of your land with our tools today and take the first step towards unlocking hidden wealth.

In a time when sustainable energy is essential, property owners can take advantage of renewable resources. This blog post looks at the strong connection between solar farms, data centers, and battery storage. Together, they create a cycle of energy. This cycle can change how we manage and use power. You will learn how these parts work together. They create a sustainable energy system. This system offers big benefits for the environment and property owners. The United States has set strong goals for developing and using renewable energy sources. This aims to create a more sustainable and eco-friendly energy system. A key goal is to greatly reduce greenhouse gas emissions. We aim to reach net-zero emissions by 2050. This aligns with the global efforts to combat climate change and mitigate its impacts on the environment and society.  The U.S. plans to generate 100% of its electricity from renewable sources by 2035. This will use the great potential of solar, wind, and other clean energy technologies. Government programs and policies are important for reaching these goals. This includes tax breaks, funding for research, and support for infrastructure projects.  The United States wants to grow its economy by focusing on renewable energy. This will create green jobs and improve energy security. It also aims to be a leader in the global shift to sustainable energy. Solar Farms are a Key Source of Renewable Energy Solar farms, also known as photovoltaic power stations, are large-scale installations that capture sunlight and convert it into electricity. These farms are typically composed of numerous solar panels spread across acres of land. The primary function of a solar farm is to generate clean energy by harnessing the sun's rays, making it a pivotal player in the transition to renewable energy sources. The benefits of solar farms  are multifaceted. Firstly, they significantly reduce dependence on fossil fuels, thereby minimizing natural gas emissions. Secondly, solar energy is abundant, especially in regions with high solar exposure. This abundance translates to a reliable energy source that can support various infrastructures, including data centers and residential areas. The role of solar farms in powering data centers and other facilities is increasingly significant. With the rise of the digital economy, data centers have become energy-intensive operations. By utilizing solar energy, these centers can reduce their carbon footprint and ensure a more sustainable operational model. This not only benefits the environment but also aligns with consumer expectations for corporate responsibility and sustainability. Integrating solar farms into the   electrical grid  is crucial for optimizing renewable energy production and helping lighten the load of the increasing power demand. This process involves key elements like installing inverters, transformers, and substations. Inverters convert the direct current (DC) from solar panels into alternating current (AC) compatible with the grid.  Transformers regulate voltage levels for long-distance transmission. Substations connect solar-generated electricity to the grid, distributing clean energy to consumers. By efficiently connecting to the grid, solar farms supply renewable energy and enhance grid stability, contributing to a more sustainable energy future. Data Centers: The Backbone of Digital Infrastructure Data centers serve a critical function in the digital infrastructure by acting as the central repositories for the storage, processing, and distribution of vast amounts of data. They house numerous servers, networking equipment, and storage systems, all of which work together to ensure that digital information remains accessible and secure. These facilities enable businesses, governments, and individuals to leverage cloud computing services, host websites, run applications, and manage data seamlessly.  The efficiency and reliability of data centers are paramount, as they support essential services that drive economic activities and daily operations across the globe. As technology evolves, data centers also improve. They are now essential for supporting new technologies like artificial intelligence, machine learning, and the Internet of Things (IoT). The energy demands of data centers are substantial, often requiring continuous power to ensure uninterrupted service. This high energy use requires a move to sustainable sources. Solar farms can help meet our needs and follow environmental standards. By integrating renewable energy, data centers can achieve greater efficiency and reduce their reliance on non-renewable power sources. Sustainable energy solutions for data centers are no longer optional—they are a necessity. Property owners who recognize this shift and invest in renewable energy infrastructure position themselves at the forefront of industry trends by understanding their property’s potential for data center development . By doing so, they not only contribute to environmental preservation but also gain a competitive edge in a market that increasingly values sustainability. The power supply needed for data center operations varies significantly based on its size, operational capacity, and the intensity of its workload. Typically, a small data center may require tens to hundreds of kilowatts, whereas a large-scale facility demands several megawatts of power. The general estimate for data center energy usage is approximately 10-50 watts per square foot, but this can escalate based on the equipment density and operational demands.  The need for continuous and uninterrupted power exacerbates energy requirements, necessitating robust backup systems like uninterruptible power supplies (UPS) and generators to maintain uptime during power outages. Efficient power management and a shift towards renewable energy sources can mitigate the environmental impact and operational costs, further stressing the importance of integrating solutions such as solar farms and advanced battery storage systems. Battery Storage is Bridging the Gap in Energy Supply Battery storage systems are critical in managing the inconsistencies inherent in renewable energy production. These systems store excess energy generated by solar farms, ensuring a steady supply even when the sun isn't shining. This capability is essential for maintaining a reliable energy flow to support data centers and other high-demand facilities. The role of battery storage  is particularly vital in balancing supply and demand. During periods of low energy production, stored energy can be released to maintain operations serving as backup power. This ensures that facilities like data centers can continue to function without interruption, regardless of external conditions. Battery storage offers numerous advantages, including enhanced energy security and reduced electricity costs. For property owners, investing in battery storage can lead to significant cost savings and increased property value. Additionally, it supports a more resilient energy infrastructure, capable of withstanding fluctuations in energy availability. Solar Farms, Data Centers & Energy Storage Interacting The integration of solar farms , data centers, and battery storage forms a cohesive energy cycle, where each component supports and optimizes the others. Solar farms generate renewable energy, data centers utilize this energy for operations, and battery storage provides stability by holding surplus power for future use. This cycle offers substantial economic benefits by reducing energy costs and increasing efficiency. Property owners who invest in this integrated system can expect lower utility bills and a more attractive property offering. Environmentally, the cycle contributes to reduced carbon emissions and a smaller ecological footprint, aligning with global sustainability goals. The interaction between these three elements showcases the potential for a sustainable energy ecosystem. By understanding and implementing this cycle, property owners can play a crucial role in advancing renewable energy initiatives and securing a cleaner future for all. Looking to the Future Innovations and Opportunities The field of sustainable energy is ripe with innovation, offering exciting opportunities for growth and development. Emerging technologies, such as advanced battery storage systems and enhanced solar panel designs, promise to further optimize the cycle of energy and expand its applicability. Property owners stand to benefit greatly from these advancements. By staying informed and proactive, they can leverage new technologies to enhance their property's value and sustainability. Investing in renewable energy infrastructure not only supports environmental objectives but also positions properties as leaders in the green energy movement. The future of sustainable energy is bright, with endless possibilities for innovation and improvement. Property owners who seize these opportunities will be at the forefront of a significant transformation, contributing to a more sustainable and efficient energy landscape. Interested in Leasing Your Property For Renewable Energy Development? The cycle of energy, encompassing solar farms, data centers, and battery storage, represents a pivotal advancement in renewable energy solutions. Its integration not only offers economic and environmental benefits but also positions property owners as key contributors to a sustainable future. By understanding and adopting this energy model, you can enhance your property's value, reduce operational costs, and support global sustainability efforts. Explore the potential of renewable energy solutions today and be a part of the change towards a cleaner, more sustainable tomorrow. LandGate's marketplace facilitates connections between landowners and renewable energy developers, enabling them to explore lease opportunities free of charge. This platform is widely used by data center developers for planning new projects and identifying suitable locations. By listing their properties on LandGate's marketplace, landowners can determine if their land is eligible for renewable energy development and review potential lease offers without any cost or obligation to accept.

In an era where digital tools and online platforms reign supreme, property value estimates have become more accessible. One such platform is Zillow, favored by many real estate investors and property owners. But can you truly rely on Zillow's estimates to make informed decisions? This blog post will uncover the truth about Zillow's property value estimates, introduce alternative tools like LandGate's LandApp tool, that has value index scores, and provide insights into land valuation for a comprehensive understanding of your property's worth. Property value doesn’t just stop at the building sitting on the property. The acreage, other potential revenue opportunities, and associated risks should be taken into consideration when assessing the value of a property.  Understanding Zillow's Zestimate Tool Zillow’s Zestimate tool is a go-to resource for anyone looking to gauge property values quickly. But how accurate is it? While Zillow uses a complex algorithm that considers public data and user-submitted information, it has limitations. Factors like the lack of recent transactions can lead to discrepancies in estimates, impacting property value perceptions. For instance, a property may receive a higher Zestimate if comparable homes in the neighborhood sell at inflated prices, regardless of intrinsic value. Conversely, a lack of updates in Zillow’s database can cause underestimations, affecting sellers' decisions and buyers' expectations. Understanding these limitations is crucial for investors and property owners aiming to make informed real estate choices. The LandGate Advantage with LandApp Enter LandGate, a game-changing platform offering property value and risk index scores. Unlike Zillow, LandGate provides a multi-faceted analysis of land value that includes energy resources, environmental factors, and investment opportunities. Our LandApp tool integrates comprehensive data to deliver insights into land, solar, wind, carbon credits, and more, setting a high bar for property valuation. Our indexes are meticulously crafted, often offering more precise evaluations than Zillow’s estimates especially when considering the land a building is sitting on and the resources. By considering factors like mineral rights and renewable energy potential, LandGate helps investors and property owners maximize returns and seize hidden opportunities, making it a vital tool for comprehensive property evaluation. By gaining access to potential risk indexes associated with property, you can quickly uncover if there are any contamination risks. We provide information on oil and gas contamination and industrial contamination. If you are considering moving to a new state, maybe one you have never visited before, we also provide natural disaster risk scores  like: Drought Wildfire Natural earthquakes Hurricane Tornado Hail Flood Local market conditions and home valuations can vary in sale prices so it is important to consider a local real estate agent when looking to purchase a home in a new area you aren’t familiar with. However, the data we provide at LandGate is something you can share with your agent when weighing the pros and cons of similar homes as we cover properties nationwide. Navigating Common Land Valuation Pitfalls Valuing land extends beyond residential and commercial properties. Many property owners fall into common traps such as undervaluing land, ignoring deed ownership intricacies, and neglecting thorough market research. These mistakes lead to missed opportunities and reduced profits. Professional guidance can be invaluable in avoiding these pitfalls. For instance, understanding zoning laws can prevent legal headaches, while a strategic marketing plan can attract suitable buyers. Websites like LandGate offer detailed reports and expert advice to guide property owners through the complexities of land valuation and sale. Agricultural Property Values in the U.S. Agricultural land is a valuable asset across the United States, with its value dictated by factors like location, soil quality, and access to water. The National Agricultural Statistics Service (NASS) reported record-high agricultural land values in 2023, reflecting growing demand and limited supply. Market dynamics, coupled with regional characteristics, influence farmland value. For example, farmland in the Corn Belt or Pacific regions commands high prices due to fertile soil and favorable weather conditions. Thorough market research and due diligence are essential for landowners to optimize their investment and secure the best possible return. If you inherited a piece of land that was previously used for agriculture, you can learn more about that property’s characteristics with our LandApp tool. If you aren’t interested in pursuing agricultural leases, you can consider other high-yield leases like solar farm or wind farm development that can provide long-term cash flow.  Demystifying Land Valuation Methods Understanding how land value is determined is critical for real estate investors and property owners. Three primary methods dominate this arena: Sales Comparison Approach : This method evaluates properties based on recent sales of similar assets. While effective in developed areas, it may not suit remote locales. Income Approach : Often used for income-generating land, this method assesses potential revenue. Ideal for commercial properties, it may lack precision for undeveloped land. Cost Approach : This method estimates value by calculating the cost to reconstruct a similar property. It’s useful for new or undeveloped land but can be time-intensive. We enhance these traditional methods by providing data-driven insights into value and risk indexes, offering a comprehensive view of a property's worth. The Conclusion of Trusting Property Value Estimates Accurate property valuation is crucial for investors and landowners aiming to make sound financial decisions. While Zillow offers a starting point for property estimates, integrating it with tools like LandGate's LandApp ensures a more robust understanding. We recommend property buyers, investors, and even sellers use our tool for a thorough assessment of property value, allowing you to explore investment opportunities and mitigate risks effectively. By leveraging platforms like LandGate, real estate investors and property owners can better understand property value dynamics, enabling strategic decision-making and investment optimization.

In our rapidly digitizing post-pandemic world, the surge in new technologies has intensified the demand for real estate for data centers. Data centers are crucial in supporting the expanding infrastructure of AI, the explosive growth of eCommerce, streaming services, and communication technologies like 5G. They are vital in helping entertainment, technology, and financial institutions achieve their growth targets. However, the industry faces a significant challenge: the current supply and pace of development may not keep up with market demand. Additionally, numerous office properties continue to weaken as distressed or under performing assets within commercial real estate portfolios. These challenges suggest a promising opportunity for the future of commercial real estate. The Evolution of Data Centers in the U.S. Data centers  house critical infrastructure that powers everything from social media to cloud-computing services. The emergence of data centers as essential big-tech infrastructure pieces has impacted the real estate industry. Traditionally, data centers have been characterized by large, low to mid-rise buildings with extensive square footage. However, this is starting to shift as multistory data centers become more common. This evolution could provide a much-needed boost to the office sector. Many older data centers were constructed before the advent of AI, which relies on vast amounts of data for effectiveness. These facilities were often located in remote areas with affordable real estate, contributing to their Spartan design and extensive land usage. However, the growing data needs of Big Tech are compelling data center operators to evolve. Data Centers and Commercial Real Estate According to   Moody's , data centers are some of the most valuable, if not the most valuable, properties in the investment-grade commercial real estate universe in 2024. Supply growth is lagging behind demand. The surge in demand for data centers, driven by the growth of AI and the rising volume of information exchanged between individuals, has paved the way for new market entrants and enabled existing operations to expand swiftly. Over the next four years, approximately 2,840 MW are anticipated to be developed across five of the ten largest data center markets in the US. To put this in perspective, this added capacity remains smaller than the current data center market in Northern Virginia, which, at about 3,000 MW, stands as the largest globally. Today, data centers are being developed in the suburbs and exurbs of major metropolitan areas, where land costs more. These new facilities are also emerging in locations where sprawling, windowless buildings behind barbed wire don’t fit the local aesthetic. However, not all buildings can be converted to data centers, and there are fewer developable sites available in primary markets. Consequently, the future of data centers is increasingly represented by multistory structures resembling office towers. Constructing vertically presents several benefits for data center operators. The primary advantage is maximizing return on investment by leasing additional space to data-intensive AI operations. Although building taller entails extra costs for plumbing and electrical work, the multistory data center trend is likely here to stay. This shift is already influencing land prices in key data center markets. For example, land prices have tripled in Chicago, one of the   hot spots for data center development , suburbs in just the last three years. Keep in mind that the initial cost only covers purchasing the land for the data center; powering it is an additional expense. Here lies a potential opportunity for some of America's distressed commercial real estate. Certain multistory office buildings in suburban areas, currently facing tenant shortages, could potentially be transformed into data centers. While this conversion isn't feasible for every property, spacious suburban office buildings in major markets might be ideal candidates for such a transition. Can the Data Center Boom Rescue Commercial Real Estate? Even with the Federal Reserve's recent rate cut, numerous office properties continue to languish as distressed or under performing assets within commercial portfolios. Transforming even a small fraction of these properties into multistory data centers could help office REIT's and banks holding their loans significantly reduce losses, potentially saving tens of millions of dollars. Additionally, it could also offer an exciting investment opportunity for real estate investors. Moreover, the rise of multistory data centers on commercial properties can potentially revitalize suburban neighborhoods and bring jobs to areas that had previously been struggling economically. This shift could also attract new businesses and stimulate further development, creating a ripple effect throughout the local economy. In turn, this growth may lead to increased demand for other types of commercial real estate such as office space or retail properties. Looking ahead, it's anticipated that the significant mismatch between demand and supply will continue. Projections of exponential data growth will fuel strong demand for data centers, while supply constraints remain. Consequently, vacancy rates are expected to stay low, resulting in stable, healthy rents. The robust fundamentals of the data center market are likely to continue offering opportunities for real estate and infrastructure investors seeking direct, development, and platform investments. Assessing Risks for Data Centers and Commercial Real Estate Against a strong fundamental backdrop driven by the significant demand and supply imbalance, we see two key considerations for investors that are likely to play a role in shaping the data center market going forward. First, the speed of technological innovation could impact the asset class in ways that are difficult to predict. For example, the conversion to   hyperscale data centers  is already making some older data centers less desirable. How easily and at what cost can today’s data centers be upgraded to the needs of the next decade is unclear. Sustainability is a key concern for data centers. Currently, data centers and transmission networks contribute approximately 1% of energy-related greenhouse gas emissions, according to the   International Energy Agency , and this share is expected to rise with ongoing data center expansion. As sustainable practices are adopted worldwide, data centers are under increasing pressure to transition to   renewable energy  sources and ensure carbon-free energy supplies. The emphasis on sustainability and the shift to renewable energy sources could affect the market in several ways, ranging from development costs to the valuation of premium assets. Investors may also need to evaluate the reputational risks associated with investing in energy-intensive, AI-driven data centers. The New Real Estate As the real estate market continues to evolve, 2024 introduces significant shifts that are set to redefine commercial real estate industry dynamics and create a   new real estate  industry. Increasingly influenced by technological advancements, environmental considerations, and the AI boom, the landscape is transforming in unprecedented ways. Much like real estate investments, the location and the underlying land—particularly access to power and the ability to secure necessary permits—are crucial determinants of asset performance and market attractiveness. Data centers often provide stable rental income, similar to real estate assets, as they are typically leased to third parties. With shifting market dynamics and rising capital costs, data center real estate investors now rely on specialized real estate software. The right technology can enable them to source, manage, and execute deals with enhanced speed, transparency, and precision. LandGate's comprehensive data solutions empower commercial real estate  professionals to perform thorough due diligence on both commercial and residential properties with ease. By offering detailed information on electrical offtake capacity, proximity to electrical grid infrastructure, and comprehensive   risk indexes , LandGate enables a quick assessment of environmental and financial risks that may affect property value and appeal. Additionally, its   value indexes  provide insights into potential hidden revenue opportunities for renewable energy ventures, such as the implementation of rooftop solar panels. This enables users to identify properties with untapped potential for generating sustainable energy, making informed decisions that capitalize on renewable energy investments and collocation opportunities. Interested in learning more about LandGate's data solutions for commercial real estate? Book a call with our team today:

For landowners, understanding the potential for your property to accommodate a data center can unlock significant opportunities for growth and income. With the digital landscape continuously expanding, the demand for data storage and processing capabilities is at an all-time high. However, not all parcels of land are suitable for such development. This resource will guide you through the key factors to consider when assessing whether your land qualifies for a data center, helping you make informed decisions about leveraging your property in this booming sector. What is a Data Center? A data center is a dedicated space—whether a room, building, or facility—designed to house IT infrastructure essential for developing, operating, and delivering applications and services. It also serves as a secure environment for storing and managing the data connected to these applications and services. The demand for data center capacity has been growing exponentially for more than a decade, but the COVID-19 pandemic triggered a significant shift. Lockdowns during the pandemic led to a surge in web conferencing, video streaming, and online gaming, and this heightened demand has persisted even in the post-pandemic world. Additionally, the emergence of new applications utilizing machine learning and artificial intelligence is further intensifying this demand. Data centers are the backbone of our digital landscape, and as this landscape expands at an unprecedented rate, so too does the demand for these facilities. From the moment we wake up, we rely on data centers for numerous facets of our daily lives. Whether it's accessing the news online, streaming music, using navigation apps, connecting with colleagues via video conferencing, or checking our latest health results on medical portals—all of these digital services and the data they generate and consume are processed and stored within data centers. This encompasses data and applications deemed "in the cloud," as the cloud itself is housed within these centers. Land Qualifications for Data Centers When considering the development of a data center , several critical factors come into play, with location being paramount. The site selected must not only provide adequate space for the facility, but also ensure proximity to essential resources such as reliable power sources and fiber optic connectivity. Beyond these logistical considerations, the political climate of the area can influence regulatory approvals and operational stability. Additionally, potential tax incentives can make certain locations more appealing for data center investments, offering financial advantages that support the long-term sustainability of such large-scale operations. Understanding these qualifications is essential for optimally positioning a data center in today’s competitive landscape. Curious if your property could qualify for a data center lease? LandGate's free property reports provide value index scores that evaluate your property's suitability for a data center on a scale of 0-100: Property Size Smaller data centers can operate within buildings ranging from 5,000 to 10,000 square feet, but larger enterprise and hyperscale data centers significantly exceed this range and can be up to 300 acres. Today's standard 40+ megawatt data centers require at least 10 acres of land, although 40+ acres is considered ideal. Location As is true with any other type of real estate, the most important factor that determines whether or not a specific property is suitable for a data center is location. Factors that determine an ideal data center location include robust connectivity, large population, favorable tax laws, low-cost and high-reliability power, low risk of natural disaster, and direct access to renewable energy . 1) Proximity to Electrical Infrastructure Data centers need power, and they need it fast. That being said, properties located near, or ideally adjacent to substations and transmission lines, are ideal for data centers. However, this is not a 'dealbreaker,' as a large data center development generally requires upgrades to the existing power grid and the construction of its own substation to supply energy. Data center developers may be willing to invest in the construction of a new substation to support new projects. Data center sites must also have access to fiber optic infrastructure. Fiber optic infrastructure continues to improve, and is generally located in many places that are already heavily developed. However, access to fiber optic infrastructure is not a 'dealbreaker' either- if fiber is not available at a potential site, it can be simple and cost-effective process for a data center developer to bring fiber where it is needed, so long as there is available space in the public right-of-way to install the new fiber. Given this information, it's important to remember that a shorter path for the new fiber may have to pass through privately-owned neighboring parcels. To use this path, easements must be obtained from the owners, which can be a time-consuming process. 2) Zoning An essential factor in determining the suitability of a property's location for a data center is its zoning ordinance. Many local land development codes lack clear guidance on data centers, which can hinder project progress. Often, these ordinances do not specifically mention data centers, causing such properties to be categorized under the less favorable "industrial" designation. However, properties can be rezoned, which is a process that typically takes 3 to 6 months. 3) Physical Characteristics Data centers require flat spaces for constructing modern buildings. This means that properties on steep slopes or in densely wooded areas are not ideal candidates for data center development. The site itself must also have enough space to accommodate the data center's building footprint, as well as parking areas and necessary landscaping. Properties already have buildings on them are great for data centers because the data center developer may be able to leverage the existing infrastructure to house the data center materials. In fact, many of today’s data centers were made from former factories. 4) Environmental Concerns Environmental concerns such as flood zones, wetlands , and endangered species habitats may pose significant challenges in developing a data center project on a particular parcel. These issues can be complex and must be addressed to ensure the safety of both the environment and the facility's operations. Political Climate The political climate of the region where a property is located can have a significant impact on data center development. Favorable tax laws, government incentives, and policies that promote renewable energy usage can make a property more appealing for data center development. State governments have long offered tax incentives to companies that establish or operate data centers, offering exemptions from sales and use taxes, real property taxes, and personal property taxes. These incentives can greatly lower the operating costs associated with running a data center. An example of this is Maryland's sales and use tax exemptions for data centers . Data center providers that construct new facilities or expand existing ones in Maryland, while also generating full-time employment, are eligible to waive sales and use tax on data center equipment. Water Access Water access is important for data centers to operate effectively. Water is used to cool the electric components of the servers and other computing equipment through a process called liquid cooling.   NPR reports  the average data center uses 300,000 gallons of water a day to keep cool, roughly equivalent to water use in 100,000 homes. Many data centers directly consume water on-site to remove the heat generated by the IT equipment. Do Data Center Developers Lease or Buy Land? Data center developers engage in both leasing and purchasing land for their facilities, although it is generally more common for them to invest in buying land. This preference for ownership allows developers to have greater control over their operations, zoning regulations, and potential for future expansion. However, the decision to lease or buy can vary depending on several factors, including the developers' available capital, risk appetite, and the specific needs of the project. For instance, developers with limited funds may opt for leasing to minimize upfront costs, while those seeking long-term stability and control are likely to invest in purchasing land outright. Ultimately, the choice reflects a strategic balance between financial considerations and operational goals. Does My Land Qualify for a Data Center? Data centers are vital to our modern digital landscape, and their demand will continue to increase in the coming years. Data center developers must carefully consider location-specific factors such as land qualifications before selecting a site for development. Factors such as proximity to electrical infrastructure, zoning regulations, physical characteristics of the land, environmental risks , and the political climate all play significant roles in determining the suitability of a property for data center development. The best way to find out if any data center developers are interested in leasing or purchasing your land for a data center is to get as many eyes on your property as possible from as many data center developers as possible. Listing your property for lease for a data center on LandGate's marketplace is a great start! Many data center developers across the nation use LandGate's software to plan new projects and to find suitable sites for data center development. Listing is completely free, with no obligations to accept any offers. Get started today: