AI data centers in the US drive up rural land prices
In the United States, the construction of data centers for artificial intelligence is increasing demand for land in rural areas and triggering protests by local communities. According to CNBC Top News, purchases of plots for future data centers reached about $6 billion in the first half of 2026, 79% more than in the same period a year earlier.
Avison Young estimates that data centers account for 27% of development sites in the United States this year. This is the second-largest category after multifamily housing. Water and energy supply facilities, as well as housing for workers, may generate additional demand for land.
Land near power grids is becoming more expensive
Plots with reliable access to regional power grids are rising in price especially rapidly. According to CBRE, last year the value of sites in Northern Virginia and the Northeastern United States exceeded $8 million per acre. In Loudoun County, Virginia, a data center developer reportedly offered $4.4 million per acre.
The National Association of Home Builders said that the median land price in Loudoun County was $125,000 per acre in 2025. The association noted that housing developers cannot compete with data center operators because their land budget is limited by homebuyers' ability to pay.
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Disputes over water and electricity
Community residents fear pressure on water and energy infrastructure, as well as a possible increase in electricity rates. Pennsylvania farmer Bobbi Thompson expressed concern about the possible impact on local water resources of a data center that CoreWeave is building in Lancaster.
A May report by Monitoring Analytics stated that existing and projected growth in data center consumption is the main reason for high prices in PJM capacity markets. The group estimates that this load growth caused a cumulative $23.1 billion increase in capacity market revenues from auctions through 2028.
In New York state, Governor Kathy Hochul announced a moratorium in July on new hyperscale data centers for up to one year. Investment bank Mizuho reported that up to nine more states are considering moratoriums on new data centers. In Saline Township, Michigan, township clerk Kelly Marion told CNBC about death threats officials received amid disputes over The Barn, a multibillion-dollar data center project that Related Digital is building for Oracle and OpenAI.
