Data center operators are increasingly engaging in land banking, a strategy of purchasing undeveloped land for future expansion, as demand for data center capacity, particularly driven by AI, continues to surge. This practice, once uncommon in the industry, is becoming more prevalent due to the scarcity of suitable sites in competitive hubs and the lengthy timelines for securing grid connections and permits. Sales of data center land have seen a significant increase, with a larger portion of development spending now allocated to land acquisition. AI
IMPACT This strategy may facilitate future AI infrastructure growth by securing land for data centers.
RANK_REASON Article discusses a business strategy (land banking) for data center expansion, not a core AI release or research.
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