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- The #1 Barrier to AI Data Centers⚡ (And How to Overcome It) 🚀
The #1 Barrier to AI Data Centers⚡ (And How to Overcome It) 🚀
Entitled land, power constraints, and adaptive reuse—what every data center leader needs to know.

Quick Bytes
🚀 AI Boom & Data Center Growth – The surge in AI is driving demand for land and power, making strategic site selection more critical than ever.
📍 Entitled & Shovel-Ready Land – Pre-approved sites with power and fiber in place accelerate development and reduce risk.
🏗️ Adaptive Reuse – Converting existing buildings into AI-ready data centers can cut timelines and costs.
⚡ Power is King – AI racks now exceed 100kW+, pushing operators to explore on-site power solutions like natural gas, modular nuclear, and renewables.
📊 New Capacity Opportunities for 2025:
250MW (Central U.S.) – Powered shell (2026), build-to-suit, natural gas-powered
20MW (Southeast U.S.) – Available 2025, liquid cooling ready
25MW (Northern-Central U.S.) – 7¢/kWh electricity, 12-month availability, 300MW entitled power
🔎 Need Data Center Capacity? We have many options from a few MWs to large-scale deployments. Book a call to explore available infrastructure.
Land & Power for Data Centers
Thanks to the AI boom, new data centers are coming online all over the world and this article addresses some of the major considerations when looking for land and power that may be appropriate for an AI data center.
Securing entitled land is one of the most critical steps in data center development. Entitled land has already undergone regulatory approvals, including zoning, environmental permits, power commitments, and fiber connectivity planning. This reduces risk, accelerates construction, and makes the site more attractive to investors. Without entitlements, delays and unexpected costs can arise, jeopardizing projects.
Beyond entitlement, shovel-ready land is the next milestone—where all necessary permits, power agreements, and infrastructure plans are in place. A shovel-ready site means construction can begin immediately, avoiding lengthy utility approvals or connectivity delays. Given AI's rapid growth, speed-to-market is a competitive advantage, making entitled and shovel-ready land essential for hyper-scalers and colocation providers.
Adaptive reuse is emerging as a fast-track solution for AI-ready data centers. Instead of building from scratch, companies are converting existing buildings into high-density data centers. This strategy can significantly shorten construction timelines, provided key factors align—such as power availability, cooling capacity, structural integrity, and fiber connectivity. Retrofitting an industrial or office space can be an efficient alternative to greenfield development, reducing costs and accelerating deployment.
Power remains the single most important factor for AI data centers. With 100kW+ per rack now common and some pushing 340kW per rack, access to reliable power is paramount. Traditional grid connections can take years to secure, leading many operators to invest in behind-the-meter (BTM) power solutions. On-site natural gas plants, modular nuclear reactors, fuel cells, and renewables are being explored to reduce grid dependency and improve sustainability.
As AI continues to drive exponential power demand, data centers must adapt by securing entitled, shovel-ready land and embracing energy independence to stay ahead in an increasingly competitive landscape.
New Capacity Opportunities For 2025
250 MW: Central region of United States
Powered shell available end of 2026
Build-to-suit opportunity
Natural gas-powered
20 MW: Southeast region of United States
20 MW available by the end of 2025
Liquid cooling for direct-to-chip
25 MW: Northern-central region of United States
25 MW available 12 months from contract
Cost of electricity is 7 cents per kW-hr
Facility has 300 MW of entitled power, ramp to be determined
The above sites are great for large-scale deployments and we have plenty of inventory for those that need a few megawatts or hundreds of kilowatts of capacity. What kind of infrastructure are you looking for? Book time here with our team to learn about what’s available.

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Nina Tusova
Director of Customer Relationship & Success // Team Ignite
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