Summary: In Episode 2 of Data Center Deep Dive, Logan Freeman explains the gap between land that looks promising on a map and a site data center operators will take seriously. Operators are buying de-risked infrastructure, not raw land, and the deciding factors are power, fiber, entitlements and whether the development makes sense.
Owners usually lead with acreage, location, price per acre and highway access. Operators want verifiable answers: available megawatts and when power can be delivered, the site's place in the utility's interconnection queue, signed utility studies or letters of intent, fiber that is diverse and redundant rather than just nearby, and real zoning and entitlement status. Owners who keep selling their land and buildings, instead of a de-risked path on power, fiber and regulatory approvals, struggle to attract serious operators.
Most sites fail at the utility conversation. Before marketing to data center developers and operators, an owner should be able to answer six questions:
Clear answers separate a real site from speculation and can support a higher price.
Zoning: data centers are not automatically allowed in industrial zones, and a special use permit, conditional use permit or full rezoning can add months or years. Floodplain: a FEMA 100-year or 500-year floodplain is a red flag, and mitigation is possible but expensive. Access: heavy construction equipment needs solid truck access, and operators look closely at who owns and maintains the roads. Rail access is a common myth, since operators rarely require it.
Logan's team now starts with community engagement, meeting with city staff, mayors and utilities before doing all the work on power, fiber and water. Having power, or potential power, does not by itself mean a site is right.
Answering a live question about obsolete downtown offices, Logan says conversions are happening now. He points to a case study of a vacant office building on LaSalle Drive in Chicago, where the owner secured entitlements and power agreements, studied how much weight each floor could carry, and sold to a data center operator for a much higher price. He also sees joint venture and revenue share structures where partners build out the infrastructure in an owner's building. Episode 3, Reuse, Retrofit or Tear Down? The Industrial Conversion Playbook, goes deeper on conversions.
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