May 2025
How Data Centers Are Transforming Industrial Real Estate
Data centers are no longer just warehouses for servers—they’re the backbone of the AI revolution. As artificial intelligence, cloud computing, and data-intensive applications expand, the global race to build digital infrastructure has intensified. What was once a low-profile industry is now drawing significant attention, with increasing competition for key land, prime locations, and influence. Real estate, energy, and industrial development are converging in ways that are transforming regions and reshaping the future of development.
One key strategy emerging in this environment is land banking.
"land banking has become a rapidly growing trend, as companies recognize the value in securing strategic real estate for long-term investments. In an increasingly competitive landscape, hyperscalers and colocation providers are not only focused on meeting the current surge in demand for digital infrastructure but are also proactively positioning themselves for future growth. By acquiring key locations in prime markets, these companies are ensuring they have access to land that will be critical for expanding their operations and meeting the ever-growing need for advanced technological facilities. This foresight is essential in maintaining a competitive edge, as real estate in high-demand areas becomes scarcer and more expensive. Through land banking, firms are not just thinking about immediate needs, but about creating the foundation for sustained, scalable growth in the years to come."
Through land banking, firms are not just thinking about immediate needs, but about creating the foundation for sustained, scalable growth in the years to come.
To stay informed on trends like this and other developments shaping digital infrastructure, subscribe to The Data Center Digest—a newsletter offering clear, insights on market activity, land strategy, energy planning, and more.
Brownfield sites
The development of modern digital infrastructure isn't limited to new greenfield projects. Many developers are turning to brownfield redevelopment as a strategic approach. Repurposing underutilized or decommissioned industrial sites allows for leveraging existing infrastructure, including power grid access, while revitalizing older assets.
Former manufacturing zones in the U.S., particularly in the Midwest and Northeast, are becoming hotspots for this type of development. In Ohio, decommissioned sites once used for military manufacturing are being repurposed into state-of-the-art digital campuses, capitalizing on their strong infrastructure and strategic locations. These sites, often near power stations or substations, offer reliable power, zoning advantages, and established infrastructure—key benefits in an increasingly competitive digital infrastructure market.
Historical sites
Ohio has become a standout example of adaptive reuse, leading the way in transforming historical and government-owned properties into cutting-edge digital infrastructure. Once known primarily for its manufacturing legacy, the state is now redefining its economic identity by turning former industrial strongholds into modern technology hubs. Companies like Ark Data Centers are playing a pivotal role in this transformation, pioneering projects that breathe new purpose into aging facilities. A notable example is in Akron, where Ark has repurposed an existing industrial site into a high-performance computing center designed to support the intensive demands of artificial intelligence and enterprise-scale data processing. These projects go beyond simple redevelopment, they represent a strategic reimagining of Ohio’s industrial foundations.
The crypto-to-AI shift
In business models, a significant shift is taking place. Crypto mining companies are increasingly transitioning to focus on AI, leveraging their existing assets to support a more stable and growing market. Companies like Core Scientific, originally focused on cryptocurrency mining, are now shifting toward AI and high-performance computing (HPC) services.
Crypto mining operations already have many of the critical assets needed for these digital spaces—large-scale power supplies, cooling systems, and industrial-grade facilities. As the volatility of cryptocurrency becomes a concern, the growing demand for AI processing power presents a more reliable avenue for long-term growth. For many companies, this shift is less about starting from scratch and more about adapting their current infrastructure to meet the higher demands of AI and enterprise workloads.
Self-sufficient energy
In line with these changes, a revolutionary new approach is gaining traction: self-sufficient power models. Some of the most ambitious projects today are designed not only to connect to the grid but to generate their own power. The Stargate design model, which incorporates on-site energy generation and storage (using renewable energy, backup gas turbines, and battery systems), exemplifies this trend. By reducing dependence on the grid, these facilities ensure operational resilience and appeal to sustainability-conscious enterprises.
This approach is particularly beneficial in areas where grid issues, utility delays, or pricing volatility could slow development. For cloud providers and AI firms operating at the cutting edge, having control over their power supply is not just a luxury but an operational necessity.
Speed and strategic design
The race to build digital infrastructure is also defined by the need for speed. As demand for AI capabilities grows, the ability to design and deploy data centers quickly has become a critical differentiator. Alex Hayes, Executive Director at LVI Associates, highlights that success is driven by designing flexible, scalable systems that can be replicated across markets and adapted to evolving needs.
Innovations like prefabricated modules and standardized power systems are helping to streamline construction and deployment, allowing companies to keep up with rapidly growing demand while reducing costs and complexity. These agile design strategies will be crucial in staying competitive as digital infrastructure needs expand.
Industrial developers leading the way
Industrial developers are increasingly stepping into the digital infrastructure space, once dominated by logistics and warehousing. Their expertise in large-scale construction, local permitting, and brownfield renewal uniquely positions them to deliver projects quickly and efficiently. Many hyperscalers are now partnering with industrial developers to manage risk and expedite timelines, combining local knowledge with construction capabilities.
These developers bring the essential skills needed for rapid deployment—skills that will be crucial as demand for digital infrastructure continues to grow. Recognizing the long-term, stable returns that digital infrastructure projects offer, industrial developers are positioning themselves as essential players in this fast-evolving sector.
Supporting the full lifecycle of data centers
At LVI Associates, we guide clients through every phase of the data center lifecycle—from design and construction to global expansion. Our expertise in recruitment and strategic advisory ensures that your projects are not only executed efficiently but also equipped with the right talent and insights at every stage.
With our global network and deep industry knowledge, we help you scale operations seamlessly, ensuring timely delivery, access to specialized skills, and the flexibility to expand in new markets. Partnering with LVI Associates means faster project execution, stronger teams, and a competitive edge in the fast-evolving data center landscape.
If you're seeking expert support or assistance with talent, request a call back today to see how we can help drive your data center success.