A wave of technological transformation is redefining the real estate industry as developers pivot from traditional construction to energy-enabled infrastructure. With artificial intelligence, cloud computing, and quantum technologies driving unprecedented data consumption, the demand for “powered land”—property equipped with the utilities and permits necessary to power large-scale data centers—is surging worldwide. According to new research from Hines, one of the world’s largest real estate investment managers, the global market will require roughly 40,000 acres of powered land over the next five years—nearly triple current levels.

The Rise of Powered Land as a Strategic Asset

Powered land represents a fundamental shift in how developers and investors view value creation in commercial property. Unlike traditional real estate, where value was tied to location and square footage, the new currency is energy access. “The challenge isn’t building walls anymore. It’s getting megawatts to the site,” explained David Steinbach, Hines’ global chief investment officer.

This trend reflects a deeper structural transformation. Developers are now negotiating directly with utilities, mapping power grids, and securing entitlements long before breaking ground. Hines, with over two decades of experience in data center development, has repositioned itself to focus on these early-stage power and grid transactions—effectively creating a new, investable asset class. Once the power rights and connections are secured, these parcels of land can be sold or leased to hyperscale operators, turning energy access into a tradeable commodity.

The New Power Players: Real Estate Meets Technology

The competition for powered land is no longer confined to traditional property developers. Technology giants, private equity firms, and energy producers are now central players in this emerging market. Silver Lake, a leading global technology investment firm, recently joined forces with Commonwealth Asset Management to launch a $400 million powered land platform aimed at meeting soaring data center demand.

“The smartest capital today isn’t chasing square footage—it’s enabling computation,” Steinbach noted, pointing to Nvidia’s recent $5 billion partnership with Intel as evidence that AI infrastructure is the “new oil.” These partnerships underscore a broader convergence between digital technology and physical infrastructure, blurring the lines between real estate, energy, and information systems.

Expanding Beyond Traditional Hubs

As data center clusters in regions like Northern Virginia, London, and Frankfurt reach capacity, developers are expanding into power-rich regions such as the U.S. Midwest, Texas, and parts of Europe. Hines’ research identifies Europe as a major growth frontier, with significant opportunity arising from underdeveloped grid infrastructure. Similarly, the Middle East is emerging as a future hub, as governments channel investment into renewable energy and AI-driven infrastructure.

Still, the path forward is complex. Developers must navigate lengthy entitlement processes, limited power availability, and local regulatory hurdles. The scarcity of high-capacity grid connections is turning powered land into one of the scarcest—and potentially most valuable—resources in global real estate.

A New Cycle in Real Estate Evolution

What began as a niche investment is quickly becoming central to the future of global property markets. The rise of powered land illustrates how technological megatrends—AI, data analytics, and digital infrastructure—are reshaping the fundamental logic of real estate. As Steinbach put it, “This isn’t just a tech story. It’s a building cycle story reshaping how and where the real estate business develops for decades to come.”

With investors and developers alike racing to claim a share of this emerging market, powered land could well define the next era of value creation in commercial real estate—where access to energy, not space, determines success.