Location Analysis and Regulatory Framework
Assessing the investment potential of land for a data center requires a careful evaluation of multiple factors. The location of the site plays a central role, ensuring both reliable access to public roads and adequate infrastructure.
Investors pay close attention to zoning and land-use plans, which define the permissible use of the property. For data center developments, it is crucial that the land has a valid zoning decision or building permit, enabling a smooth approval process. Equally important are legal and environmental requirements that may impose development restrictions.
Another key aspect is the timeframe for project delivery and the availability of utilities, particularly electric power. Market dynamics and potential regulatory changes must also be factored into any feasibility study.
Power Supply as the Key Factor
Access to electricity is the most critical factor in evaluating land for a data center. Modern facilities require between 40 MW and 1000 MW of capacity.
- Assess proximity to substations and high-voltage transmission lines.
- A stable power grid significantly increases the property’s value.
- Land located near renewable energy sources or planned nuclear power plants is particularly attractive.
- Regional electricity costs can directly affect profitability.
- Consider long-term Power Purchase Agreements (PPAs) to secure favorable energy terms.
Telecommunications Infrastructure
- Proximity to fiber optic nodes determines site suitability.
- Data centers require redundant, high-capacity internet connections.
- Sites without fiber access lose significant value.
- Dark fiber availability boosts the attractiveness of a location.
- Low latency is especially important for sites near major urban hubs.
Legal and Administrative Aspects
- Zoning compliance directly impacts approval timelines.
- Industrial zones are not always automatically suitable for data centers.
- Permitting procedures can take 6–18 months. Land with pre-approved environmental and planning permits holds greater value.
- Community and local government support is essential. Some municipalities provide tax incentives for data centers.
Geological and Environmental Conditions
- Geotechnical surveys are vital to avoid costly surprises. The land must support heavy IT infrastructure loads.
- Avoid areas exposed to flooding or seismic risks. Safer locations generate higher investment returns.
- Cooling water access can be operationally critical. Sites with industrial water availability have a strong competitive edge.
Size and Development Potential
- Future-proof data centers typically require a minimum of 10 acres.
- Facilities with up to 1.4 million sq ft (approx. 130,000 m²) of floor space are becoming the standard.
- Expansion potential significantly increases land value.
- Clustering near existing data centers creates high-value technology hubs.
- Reserve space for auxiliary infrastructure such as transformers, backup generators, and cooling systems.
Financial Analysis and Returns
- Data center land values are rising sharply – in some regions, prices have increased tenfold within two years.
- In Northern Virginia, prices exceed USD 4 million per acre.
- In Europe, sites with secured power access are valued 2–4 times higher than comparable plots without it.
- Construction timelines range from 12 to 36 months. Faster permitting processes significantly improve ROI.
Market Trends and Outlook
- The Polish data center market is expected to triple by 2030.
- Warsaw remains the primary hub with over 320 MW installed capacity.
- Secondary regions are gaining in importance.
- Artificial Intelligence (AI) is driving energy demand to unprecedented levels.
- Sustainability is a key decision factor: sites with access to clean energy and waste heat recovery opportunities have a clear competitive advantage.
Conclusion
Evaluating the investment potential of land for a data center requires a comprehensive, multi-dimensional approach. The most decisive factors are:
- Availability of power supply and fiber infrastructure,
- Regulatory compliance,
- Environmental and geological security, and
- Market outlook.
With digital demand continuing to grow rapidly, the data center sector in Poland – and across Europe – offers strong long-term growth opportunities.
