Data Center Site Selection and Development in the Age of AI

Navigating this changing market requires an integrated understanding of power infrastructure, site logistics and shifting regulatory framework.
The demand for more data centers, already steadily increasing, was supercharged when generative AI programs such as ChatGPT and Gemini hit the market. Now, the architecture, engineering and construction industry is challenged to keep pace, with data center vacancy rates dropping to a record low of 1.9% at the end of 2024, according to CBRE.
Surging power demands, fewer sites that check all the predevelopment boxes and tighter permitting requirements mean that finding and developing a site requires foresight and expertise. As developers navigate this changing market, they should keep several important considerations in mind.