F E A T U R E
NAVIGATING THE INCREASING SCARCITY AND COST OF SUITABLE LAND FOR EXPANSION
As the demand for digital infrastructure grows , data centre operators and developers face mounting challenges in securing suitable land for expansion . Rising costs , limited availability and environmental considerations are forcing the industry to innovate with creative site selection , vertical designs and sustainable practices to meet the needs of a connected world . he rapid growth of
T cloud computing , AI and digital services has fueled an unprecedented demand for data centres . However , as operators race to expand their infrastructure , they are encountering a significant hurdle : the scarcity and rising cost of suitable land . With limited options in prime locations alongside increasing competition , the industry is being pushed to explore innovative strategies to sustain growth while addressing environmental and logistical challenges . We spoke to three experts on how they are managing this challenge .
Anthony Milovantsev , Partner , Altman Solon
We are observing six concrete tactics data centres are using to tackle the growing challenge of land scarcity and soaring costs .
1 ) Geographical diversification : moving into less saturated regions or secondary markets where land is both more available and less costly , as well as the power grid being generally less under strain with net new DC developments . This often involves balancing the cost benefits with the need for connectivity , sometimes necessitating investment in infrastructure like building out substations and fibre optics to ensure viability .
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