Artificial intelligence is fueling a major land rush as developers search for sites capable of supporting new data centers.
Across the United States, demand for computing infrastructure is reshaping commercial real estate markets and increasing competition for development land. Data centers require significant amounts of land, electricity, and water. Therefore, developers often target areas offering available acreage and access to critical infrastructure. Increasingly, that search is extending beyond established technology hubs and into rural communities.
During the first half of 2026, U.S. land purchases for future data centers reached approximately $6 billion. That figure represents a 79% increase compared with the previous year. Moreover, data centers account for approximately 27% of U.S. development sites this year. Only apartment development represents a larger share.
The expansion is also influencing property values in markets that historically attracted less institutional development. Land with access to sufficient power can command significant premiums. Consequently, property owners in targeted areas may receive offers well above previous land values.
Meanwhile, additional development can follow large data center projects. Power infrastructure, water facilities, housing, and supporting businesses may expand to serve these projects and their workers. However, rapid growth can also create challenges for surrounding communities. Residents and municipalities are increasingly evaluating electricity demand, water consumption, infrastructure capacity, and future land uses.
As a result, local governments are taking a closer look at how data centers fit within long-term development plans. The trend carries significant implications for commercial real estate investors and landowners.
Sites once valued primarily for agricultural or traditional industrial uses may now attract technology infrastructure developers. Ultimately, AI growth is changing how developers evaluate land across the country. Access to power and infrastructure could increasingly influence where development occurs and how properties are valued.
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