Decoding Data Center Lease Rates: Powering Smarter Site Selection with LandGate

With the data center market demand surging, driven by AI workloads, cloud computing, and an increase in hyperscale projects, the prevalence that data centers hold in our current global economy is paramount.  As businesses, governments and data center developers increasingly rely on data-intensive operations, scalable, reliable, and energy-efficient infrastructure has become immensely prevalent. Considering the monumental impact that data centers have on energy consumption, real estate, and investment strategies all across the world, an increase in the precision of data center planning, strategic site evaluation, and efficient resource allocation is necessary to meet technological and economic demands and cultural shifts within our markets. Leasing rates have become critical factors within this market, influencing investment decisions and shifts in profitability frameworks across data center developers and colocation tenants. LandGate is proud to include exclusive data center lease rates across its data center site selection and due diligence reports. 

Leveraging our own database and awareness of the market, LandGate is also able to provide information about parcel costs, informing site selectors about the history of the parcels chosen for development, allowing our users to make highly informed decisions about their next project. 

Leasing rates are supplementary to digital infrastructure developments, each change reflected in the subsequent alteration in price for colocation or to lease the data center itself. They serve as key benchmarks to evaluate market viability, site selection, and capital allocation, allowing developers to scale operations and tenants to understand infrastructure capacities accordingly. In a market that is defined by land scarcity, rising construction costs, zoning regulations, and grid constraints, the need for leasing rates helps developers and tenants alike to navigate the future of digital infrastructure. LandGate’s exclusive state lease estimates and colocation averages allow developers and data center consumers to stay on top of the market. 

On the site selection side, data center developers can use the lease rate estimates to evaluate their cost margins, allowing companies to evaluate recurring operational expenditures and cash-flow analyses along with what more can be done to attract investment. Additionally, companies interested in data center space can use these rates to understand more about the quality of the data center. Centers with higher security systems, refined redundancy infrastructures and cooling mechanisms, increasing traffic, and reduced downtime will have subsequent lease rates. Additionally, in high cost areas, competition and quality will be reflected within the available rack space and leasing information. 

LandGate’s analytical resources have carefully curated lease rate estimates in accordance with surrounding infrastructure, security compliances, grid costs, and much more to ensure an efficient and accurate data center report, leveraging data across our own platform. To view lease rate estimates, due diligence reporting, and site selection, book a demo with our team.