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- The Modern Landman: Renewable Energy Prospecting
The position of a landman has always been essential in the energy industry. But what is a landman? Typically, landmen act as intermediaries, negotiating leases with landowners to facilitate the exploration and development of minerals, oil, and gas. They represent energy companies publicly, handling relationships and ensuring seamless transactions. However, with the rise of renewable energy and advanced data platforms like LandGate , the landscape for the modern landma n is shifting dramatically. The Traditional Role of a Landman Throughout history, the landman have been crucial to the oil and gas sector. Their duties have included: Negotiating Leases : Interacting with landowners to secure rights for mineral exploration. Title Research : Examining property ownership and confirming legal statuses. Regulatory Compliance : Making sure all operations adhere to local, state, and federal laws. Coordination : Collaborating with geologists, engineers, and other experts to support exploration and production efforts. Landmen can be categorized into different types: In-House Landmen : Staff members within an energy corporation. Independent Field Landmen : Freelancers who operate on a project-by-project basis. Independent Land Consultants : Specialists offering expert advice and services. 2025 Changes Impacting the Landman Role With the advent of renewable energy projects and advancements in technology, the role of the landman is undergoing significant transformation. Here are some key changes: Shift to Renewable Energy Projects Landmen are no longer confined to oil and gas projects. They are now sourcing sites for solar, wind, and other renewable energy projects. This shift requires a different set of skills and knowledge, including an understanding of zoning laws, environmental impacts, and community relations specific to renewable energy. In fact, the AAPL (American Association of Professional Landmen) now offers r enewable-specific certification to their membership. Use of Advanced Data Platforms Data platforms like LandGate are revolutionizing how landmen operate. These tools provide comprehensive datasets, including land ownership, mineral rights, environmental assessments, and financial analyses. By leveraging such platforms, landmen can: Identify Optimal Sites : Quickly locate suitable properties for various energy projects. Analyze Data Efficiently : Access real-time data and analytics to make informed decisions. Streamline Negotiations : Use detailed property insights to negotiate better terms with landowners. Looking Ahead: The Renewable Energy Future of the Landman Role The future of the landman role will likely see further integration with technology and a continued focus on renewable energy. Here’s what we can expect: Increased Reliance on AI and Machine Learning Artificial intelligence and machine learning algorithms will play a significant role in site selection and data analysis. These technologies can predict the best locations for energy projects by analyzing vast amounts of data, including weather patterns, land use, and economic factors. Expanded Skill Sets Future landmen will need to possess a broader range of skills, including: Technical Knowledge : Understanding both traditional energy and renewable energy technologies. Data Analytics : Proficiency in using data platforms and interpreting complex datasets. Community Engagement : Building strong relationships with communities and stakeholders to gain support for projects. Enhanced Regulatory Knowledge As the energy sector continues to evolve, so too will the regulatory landscape. Landmen will need to stay abreast of changing laws and regulations related to both fossil fuels and renewable energy sources. Landman Industry Outlook The role of a landman is evolving rapidly in response to the rise of renewable energy and the advent of advanced data platforms like LandGate . While the core responsibilities remain—negotiating leases, conducting title research, and ensuring regulatory compliance—the scope and tools of the job are expanding. Landmen are now at the forefront of sourcing and developing renewable energy projects, equipped with cutting-edge technologies that make their work more efficient and impactful. For those interested in pursuing a career in this dynamic field, the future looks bright. Adaptability, continuous learning, and a keen understanding of both traditional and emerging energy sectors will be key to success. To learn more, book a demo with a member of our dedicated energy markets team.
- A Guide to the IRA & CCS Development
What is CCS? CCS, or Carbon Capture and Storage, encompasses various methods to prevent CO2, produced during energy generation or as a byproduct of industrial activities, from entering the atmosphere. It can also be captured directly from the air through Direct Air Capture (DAC). This is the capture component of CCUS/CCS (Carbon Capture & Storage). After capturing carbon, it can be managed in several ways. Carbon storage involves injecting CO2 into the ground, effectively removing it from the atmosphere permanently. Carbon utilization includes processes that use captured CO2 instead of other compounds. Enhanced Oil Recovery (EOR) is one such process, where CO2 is injected into oil and gas wells to boost oil recovery, partially sequestering the CO2. Other utilization examples involve using CO2 as a feedstock in industrial processes adapted for this purpose. What is the IRA? The Inflation Reduction Ac t is legislation that introduces significant changes across many sectors of the US economy. It has notably altered CCS and the 45Q tax credit, providing more funding and easier access to resources for carbon emission reduction processes. The IRA's impact on energy markets extends well beyond its effects on CCUS and carbon capture practices. While its future beyond 2024 may remain uncertain, there is reason for CCS developers to remain optimistic. How has the IRA changed things for CCS? The IRA has made CCS activities more financially rewarding. It primarily increased the value of the 45Q credit, a tax credit that functions like a commodity price for CCS activities, akin to a CO2 sales price. The IRA has raised the price for a tonne of CO2 to between $60 and $180, depending on the CO2 source and the injection/utilization method. The source determines whether the carbon was captured from industrial processes and energy generation or from DAC. The injection aspect considers how the captured CO2 is handled, whether stored permanently in a Class 6 well, used for additional oil recovery in a Class 2 well, or utilized in another industrial process. US Code 45Q is the carbon sequestration credit introduced in the 2008 tax code to provide tax incentives for CO2 storage, carbon capture efforts, CCS, and more. The IRA amends Code 45Q concerning CCS. Increased Payments: The IRA raised 45Q tax credit values, enhancing financial incentives for carbon dioxide storage. Payment for carbon captured from industrial and power generation facilities and stored in saline geologic formations increased to $85 from $50/tonne. Payment for carbon captured from industrial and power generation facilities and utilized in EOR or other industrial processes increased to $60 from $35/tonne. Payment for carbon captured through DAC and stored in saline geologic formations increased to $180 from $50/tonne. Payment for carbon captured through DAC and utilized in EOR or other industrial processes increased to $130 from $50/tonne. Lower Requirements: The IRA expanded the number of facilities eligible for 45Q tax credits by lowering the emission requirements. Power Generation facilities now qualify for credits if they emit 18,750 tonnes of CO2 per year, down from 500,000. Industrial Facilities now qualify if they emit 12,500 tonnes of CO2 per year, down from 100,000. Direct Air Capture Facilities only need to capture 1,000 tonnes of CO2 annually, instead of 100,000. Extended Credit Availability: The credit can be claimed for 12 years post-installation, and facilities starting construction before 2033 are retroactively eligible. Direct Repayment: Carbon capture project developers can receive 45Q as a refundable direct payment, similar to a tax overpayment. For-profit entities can use this option for five years post-equipment installation, after which they must sell credits if they exceed their tax burden. Tax-exempt entities like states, municipalities, Tribes, and cooperatives can use the direct pay option for the full 12 years post-equipment installation. What is DAC? Direct Air Capture is an industrial process that extracts carbon dioxide from the atmosphere by passing air over a compound that binds CO2, removing it from the air. The CO2 can then be extracted from the compound and stored for future use or permanently sequestered underground. The compound can be recycled for further CO2 capture. LandGate’s CCS tools evaluate the economics of using different CO2 sources. What land data is needed to conduct CCUS/CCS projects under the IRA? Extensive data is required: geological data to locate suitable formations for CO2 injection, data on nearby wells to assess EOR eligibility, surface data such as proximity to CO2 pipelines or capture facilities, and landowner information for contacting surface rights holders. LandGate consolidates these datasets, offering comprehensive tools and support for CCS projects. What’s the difference between utilization and storage? It's essential for developers to differentiate between CO2 utilization and storage opportunities. Storage involves permanent geological sequestration, where CO2 is injected into underground reservoirs and monitored to prevent emissions. The CO2 is removed from the atmosphere and the carbon cycle. Utilization can involve Enhanced Oil Recovery (EOR), where CO2 is injected to enhance oil and gas production, potentially storing CO2 in reservoirs to offset extracted hydrocarbons. Alternatively, CO2 can be used as a feedstock in industrial processes, such as concrete production, which increasingly incorporates captured CO2. LandGate’s PowerTools suite for CCS Solutions provides detailed data on Class II and Class VI wells for CO2 injection, as well as facilities across the United States utilizing CO2. What’s the difference between Class 2 and Class 6 wells? Wells are classified based on specific criteria and purposes, each with distinct permitting requirements. Class 6 wells, or Class VI, inject CO2 into deep rock formations for Geologic Sequestration to reduce atmospheric CO2 and mitigate climate change. Class 2 wells, or Class II, are used for enhanced oil recovery, waste fluid disposal, and liquid hydrocarbon storage. Only EOR wells qualify as CCS. LandGate provides data on all US wells and allows search and filter options for CCS project criteria. The CO2 commodity price varies based on whether it's injected into a Class 2 or Class 6 well. Class 2 wells are paid $60 or $130, depending on the CO2 source, while Class 6 wells are paid $85 or $180. How do I find land appropriate for CCUS/CCS? Finding suitable land for CCS involves conducting detailed geological surveys and manually searching for landowner information and making contact. Alternatively, LandGate can quickly assess any property in the US for CCS potential and facilitate connections with willing landowners. To learn more, book a demo with our dedicated energy markets team.
- Understanding IRA Energy Communities
How ‘Energy Communities’ Impact Renewable Energy Development in 2023 The Inflation Reduction Act (IRA) offers renewable energy developers extra federal tax incentives for projects in designated Energy Communities. These incentives affect solar, wind, and energy storage developments. This article will explore how to locate landowners in energy communities, the criteria for qualification, the potential benefits, and the geographical prevalence of the three types of Energy Communities outlined by the IRA, helping developers pinpoint these areas. Want to learn even more? Catch our webinar recording below: Qualifying Characteristics of Energy Communities in 2025 Brownfield A Brownfield Community is easily identifiable: it refers to properties with actual or suspected environmental contamination from previous uses, complicating expansion or redevelopment as designated by the US Environmental Protection Agency (EPA). This designation makes these sites eligible for funding aimed at redevelopment and cleanup. Brownfield parcels, often smaller in size, are particularly suitable for community solar developers and Battery Energy Storage Systems (BESS). While Brownfield sites are distributed across the United States (see Figure 1.0 below), they are most densely found in former industrial and commercial hotspots, comprising only a small percentage of the total land area. You can access the Brownfield data layer through LandGate’s PowerData tool. Coal Communities A Coal Community is defined by a census tract and any adjoining tracts that have experienced the closure of either a coal power plant after December 31, 2009, or a coal mine after December 31, 1999. These tracts can be extensive, especially in rural areas, making them attractive for large-scale solar and wind project developments. Currently, coal plants and mine shapefiles account for approximately 20% of the overall area of the United States. Below, Figure 2.0 illustrates eligible census tracts in light green. You can access the Coal Communities data layer through LandGate’s PowerData tool . Tax and Job Revenue The third Energy Community, as defined by the Inflation Reduction Act (IRA), is a metropolitan or non-metropolitan statistical area that meets both of the following criteria: “0.17 percent or greater direct employment or at least 25 percent of local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas.” Unemployment is equal to or greater than the previous year’s average. It is important to note that the statistical areas for fossil fuel employment are vast. For instance, non-metropolitan statistical areas with more than 0.17% fossil fuel employment encompass much of Nebraska, Nevada, Alaska, Montana, and large portions of several other states. Due to this expansive coverage, approximately 82% of the total United States land area could qualify as energy communities without the additional criteria. However, this percentage significantly decreases since these areas must also have an unemployment rate exceeding the average. Nonetheless, eligible territories still account for 39% of the total US area. Identifying these Energy Communities can be challenging. First, as unemployment rates fluctuate, it is unclear how long a community will remain eligible for the tax credit. Therefore, the Department of Treasury and Energy is expected to propose a logical solution soon. Additionally, the Internal Revenue Service has issued requests for comments regarding further guidance on IRA Energy Communities. Furthermore, many eligible regions do not align neatly with expected locations of energy communities. They include various gas, coal, and oil-dependent communities in states such as West Virginia, Pennsylvania, Texas, and New Mexico, while excluding regions like Oklahoma, Wyoming, and North Dakota, where fossil fuel production is vital for local economies. Interestingly, areas like Washington, Oregon, and parts of Michigan, with minimal fossil fuel production, may be included. An energy community can also be defined as one where fossil fuels contribute about 25% of local tax revenue. Nationwide, fossil fuels generate approximately $138 billion in revenue for tribal, federal, local, and state governments. While there are estimates for fossil fuel revenues at the national level, local-level data is often not publicly available. Additionally, many local governments do not disclose tax revenue line items for infrastructure or facilities related to coal, natural gas, and oil. LandGate possesses extensive data on all land resources, including local-level oil and gas-related tax data for every county in the US. We can conduct bankable evaluations of production to estimate the associated tax revenue necessary for this 25% local tax revenue calculation. A significant portion of the US falls into a gray area that requires these calculations to substantiate IRA eligibility. If you are interested in these tools and how to leverage them for energy communities, please request a meeting with your LandGate client success representative. Finding Landowners in Energy Communities While there are numerous strategies to create a profitable development pipeline, the tax benefits of the IRA make identifying projects within energy communities an advantageous choice. Although traditional methods for connecting with landowners can be employed, there are tools available to help you gain a competitive edge and secure the best sites first. I. Utilize PowerLeads Employ a filter in PowerLeads to search for leads specifically within Energy Communities. This approach allows landowners to seek you out rather than the other way around. PowerLeads primarily sources leads from three major channels, significantly reducing your general and administrative costs for obtaining Letters of Intent (LOIs) across various land site control campaigns. LandGate has a robust Real Estate team with experience from top-performing prop tech companies, connecting with Land Agents nationwide. We estimate that we are currently in contact with 60% of land agents in the country, aiming for 90% by the end of the year. With over six years in the industry, our organic SEO is gaining traction, supplemented by a strong Pay-Per-Click advertising campaign that attracts landowners to our website to discover the approximate value of their land resources. We employ proprietary optimized traditional advertising methods that generate more leads each month at an exponential rate. II. Optimize with PowerCRM Utilize the PowerCRM parcel search tool to enhance your traditional site acquisition campaigns, specifically targeting IRA Energy Communities along with other common criteria used in greenfielding. Implement these strategies to effectively identify sites before your competitors do. Increase Volume of Viable Sites: By reducing the time required to analyze sites, you can increase the number of sites entering your top of the funnel. Unless you are willing to invest six figures in a custom GIS ecosystem, which takes months to complete and incurs ongoing maintenance costs, use LandGate. No other GIS SaaS tool can query all parcels within your desired size range and buildable acreage criteria efficiently. Quality Parcel and Phone Number Data: If landowners do not receive your mailer or call, they cannot respond. You get what you pay for. LandGate provides best-in-class parcel data at a fraction of the cost of other providers. Improve Quality of Mailers: With PowerData and PowerCRM, you can automatically generate a 15-30 page report detailing all relevant land value data for a specific parcel, including its location highlighted on a map. This personalized approach demonstrates to landowners that you value their time and resources. Utilize A/B Testing: Given that demographics vary by state, you can enhance response rates by testing different mailers, content, and formats. The best way to do this within LandGate is by running multiple campaigns in PowerCRM, allowing you to log response rates easily and identify the most effective strategies to scale. Implement Autodialing: Rather than spending countless hours speaking with individuals who may not be interested in development, leverage your high-quality contact numbers to automatically leave voicemails, engaging only with those who express interest by calling you back. Locating these site types has historically posed challenges, but developers can now utilize LandGate’s data layers to swiftly identify sites suitable for renewable development that qualify for Energy Community Investment Tax Credit (ITC) benefits. You can apply your own defined siting criteria, including acreage size and proximity to infrastructure, to search for parcels within all the energy communities described above. Ready to learn more? Schedule a call with our team:
- IRS Clarifies IRA Rules
IRS Clarifies Rules Set by the Inflation Reduction Act (IRA) The Inflation Reduction Act (IRA) revised existing regulations and established new ones for renewable energy projects in designated Energy Communities, and the IRS recently clarified rules surrounding the IRA. These new regulations affect solar, wind, and energy storage developers, as projects situated in Energy Communities may be eligible for extra tax credits. These credits include the production tax credit (PTC) and the investment tax credit (ITC). Projects utilizing the PTC may enhance their PTCs by 10%, while those using the ITC may claim up to an additional 10% ITC, provided the project meets the wage and apprenticeship requirements . If a project fails to meet these requirements, the ITC is reduced to an additional 2%. In this article, we will explore how IRS Notice 2023-29 has clarified our understanding of IRA Energy Communities and what further guidance we can anticipate. Want to learn more? Watch the webinar recording below: What are Energy Communities? Energy communities are defined as specific geographic areas that have been historically reliant on fossil fuel production and are transitioning towards renewable energy sources. The Inflation Reduction Act (IRA), passed in 2022, includes provisions that support the development and growth of these communities, aiming to promote economic revitalization and energy transition. Definition: Energy communities are typically located in regions that have experienced a decline in fossil fuel production, such as coal mining areas, and are characterized by a commitment to renewable energy development. Tax Incentives: The IRA provides tax credits and incentives for renewable energy projects located in these communities, encouraging investments in solar, wind, and other clean energy technologies. Job Creation: The act aims to create jobs in energy communities by supporting the transition to renewable energy, thus providing new employment opportunities for workers affected by the decline of fossil fuel industries. Community Engagement: The IRA emphasizes the importance of involving local stakeholders in the planning and implementation of energy projects, ensuring that the benefits of renewable energy development are shared within the community. Environmental Justice: The focus on energy communities aligns with broader goals of environmental justice, addressing the disproportionate impacts of climate change and pollution on historically marginalized communities. Energy communities under the Inflation Reduction Act represent a strategic approach to facilitate the transition from fossil fuels to renewable energy while fostering economic growth, job creation, and social equity in regions that have historically depended on fossil fuel extraction. The act's provisions aim to empower these communities to become leaders in the clean energy economy. What was the Initial Guidance on Energy Communities? The initial guidance on Energy Community can be found here . More recently, the Internal Revenue Service (IRS) and Treasury Department released additional guidance on April 4, 2023, with Notice 2023-29 . Why was Additional Guidance Needed? Elaborate on the criteria that define Energy Communities. Specify if renewable energy projects are "situated in" an energy community. Outline the data sources and methods employed to qualify renewable energy projects. Assess if modifications to an energy community area (Brownfield, MSA/non-MSA, census tract) influence a project's eligibility for credits. Key Takeaways from New IRS Guidance (Notice 2023-29) The updated guidance offers developers and investors greater assurance when incorporating an Energy Community tax credit into their financial plans. The IRS and Treasury Department have clarified the definitions for the three Energy Community categories (Brownfield, Coal Closure, Statistical Areas). The IRS and Treasury Department will annually release lists of MSAs and non-MSAs that satisfy the unemployment rate criteria for the Statistical Areas category. For projects situated near an Energy Community boundary, the Nameplate Capacity Test and the Footprint Test were specified to assess eligibility for tax credits. Some questions remain unresolved, such as the formula that will determine fossil fuel tax revenues for Statistical Areas. Additional guidance is anticipated. Energy Community Categories Brownfield A Brownfield site refers to a real property where expansion, redevelopment, or reuse might be complicated due to the presence of hazardous substances or pollutants. Notice 2023-29 introduced a “safe harbor” for accepting Brownfield sites that satisfy at least one of the following criteria: The site has previously been evaluated by federal, state, territory, or federally recognized Indian tribal brownfield resources and meets the Brownfield definition Sites listed on the Brownfields Properties section of the EPA’s “Cleanups in My Community” webpage or similar sites A Phase II Assessment has been carried out, confirming the existence of hazardous substances, pollutants, or contaminants For projects of 5MW (AC) or less, a Phase I Assessment has been completed Brownfield sites are scattered across the US, particularly in industrial and commercial areas. Their closeness to populated regions and electrical infrastructure often makes them excellent candidates for renewable energy projects, particularly for community solar and BESS developers, as brownfield parcels are generally smaller in size. You can access the Brownfield data layer through LandGate’s PowerData tool . Coal Closure Census Tracts The Coal Closure category encompasses any census tracts or neighboring tracts where a coal power plant shut down after December 31, 2009, or a coal mine ceased operations after December 31, 1999. Although the criteria for these tracts remain unchanged, the IRS has provided guidance to assist in determining if a project is located in a qualifying Coal Closure tract. The tract boundaries utilized will be from the 2020 Decennial Census and will be revised every 10 years. Additionally, it was noted that census tracts are considered adjoining if their boundaries touch at a single point (for example, if four square-shaped census tracts converge at one corner, they would all be deemed adjoining tracts). The IRS provided a table of tracts that they believe qualify. The qualifying coal closure tracts are quite large and make up about 15% of the overall area in the United States. This makes them attractive targets for large-scale solar and wind project developers. You can access the Coal Closure layers through LandGate’s PowerData tool . Statistical Areas The third category within the Energy Community is the Statistical Areas category. This pertains to renewable energy projects situated in MSAs (Metropolitan Statistical Areas) or non-MSAs that have, at any point since 2009, fulfilled both of the following conditions: “0.17 percent or more direct employment or at least 25 percent of local tax revenues connected to the extraction, processing, transport, or storage of coal, oil, or natural gas”. Due to the complexity of determining historical tax revenues, the IRS has requested public input to aid in formulating rules. Comments are to be submitted by May 4, 2023. Further details about qualifying fossil fuel tax areas are anticipated after that date. The unemployment rate is equal to or exceeds the national average of the previous year. The Treasury Department and IRS intend to publish a list of MSAs and non-MSAs annually in May that satisfy the unemployment rate criterion. Following the May 2023 update to the unemployment rate figures (using 2022 data), the subsequent update will occur in May 2024, and so forth. Consequently, each list of qualifying MSAs and non-MSAs will be applicable for approximately 12 months (from May through April of the following year). Determining if a Project is Located in an Energy Community The size and configuration of Brownfield sites, census tracts, MSAs, and non-MSAs evolve over time. Consequently, questions have arisen regarding how to ascertain if a renewable energy project is situated within an energy community, and whether alterations to energy community areas impact a project's qualification for tax credits. When Does a Project Qualify for ITCs or PTCs? The eligibility of an energy project or energy storage facility for 'Energy Community' tax benefits varies based on the tax credit claimed. For the ITC, a project qualifies if it is situated in an Energy Community on the "placed in service" date. For the PTC, a project must be considered "located in" an Energy Community throughout each taxable year of the facility’s 10-year credit period. The IRS has also introduced special rules for the "Beginning of Construction" to safeguard developers from changes in Energy Community areas that might affect their investment. If a project starts construction in an area deemed an Energy Community at that time, the location will be regarded as an Energy Community for the entire credit period. How Much of a Project Must be Located in an Energy Community under the IRA? The two tests outlined below can help further ascertain whether a project is situated within an Energy Community. Projects with a nameplate capacity should use the nameplate capacity test, while those without can opt for the footprint test. The “Nameplate Capacity Test” At least 50% of the project’s nameplate capacity is located in an area designated as an Energy Community. The “Footprint Test” At least 50% of the project’s square footage falls within an area designated as an Energy Community. Using LandGate’s Solar PowerVal tool , developers can quickly estimate whether a project passes the Nameplate Capacity Test or the Footprint Test. Solar PowerVal also allows for custom input parameters such as the type of solar panel used, spacing, exclusion zones, and setbacks. Ready to learn more? Schedule a call with our team:
- Biden Administration Considering Executive Action to Drive Data Center Development
The Biden administration is exploring the possibility of taking executive action to stimulate the development of data centers , according to recent coverage by E&E News. The White House views data centers as critical infrastructure in the digital economy, supporting everything from cloud services to AI innovations. However, challenges such as rising energy demand s, supply chain hurdles, and climate considerations have heightened the urgency for federal action. Key Considerations Behind the Move Data centers are essential in today’s connected world, yet their growing number places immense pressure on energy consumption and land use. This concern ties directly to the administration's broader goals of addressing climate change while maintaining technological innovation and economic growth. According to insiders, the administration is weighing options that would balance support for data center expansion with sustainability efforts. Policy discussions include potential guidelines for energy-efficient designs, investments in renewable energy partnerships, and incentives for local governments to host new facilities. While legislative paths are being explored, executive action could provide a faster route to boost development while addressing immediate challenges faced by developers. Why This Matters for Data Center Developers If enacted, executive measures could unlock opportunities and alleviate barriers for developers. Energy Efficiency Incentives : Developers may see financial support for deploying energy-saving technologies, such as advanced cooling systems or renewable energy integration. Streamlined Approvals : Federal support could simplify permitting processes for new facilities, helping accelerate project timelines. Public-Private Partnerships : Encouraging collaboration between federal agencies and private companies could lead to innovative solutions for powering data centers sustainably. Balancing Growth and Sustainability in Data Center Development One central tension in this initiative is the need for sustainable growth. Data centers are large consumers of electricity, and the administration appears focused on ensuring their evolution aligns with carbon reduction and energy resilience goals. While opportunities for developers are clear, these actions may also bring higher standards and expectations for energy performance, presenting both opportunities and challenges. What’s Next? Details on the potential executive action remain forthcoming. However, this move signals that the federal government is paying close attention to the role of data centers in the broader economy and climate efforts. For developers, this is a moment to prepare for upcoming policy changes that may reshape the landscape of the industry. For now, staying informed and adaptable will help you make the most of emerging opportunities in what could be a new era of growth and innovation for data centers. LandGate helps data center developers through their toughest site selection challenges, providing complete energy infrastructure data including available power at every substation across the US. To learn more, book a demo with a member of our energy markets team.
- Esri & LandGate - The State of New Mexico: Success Story
The State of New Mexico Land Office, tasked with managing the state’s vast land holdings, turned to LandGate and Esri with an ambitious goal: unlock the renewable energy potential of their lands while driving clean energy innovation. They had three clear objectives: 1) Attract top renewable energy developers for leasing opportunities 2) Contribute to clean energy generation in New Mexico 3) Assess the renewable energy potential of their extensive land assets With LandGate’s cutting-edge data and Esri, they achieved just that. The State of New Mexico evaluated the renewable energy potential of their properties, showcased available lands, and generated competitive offers from developers. To date, they’ve successfully leased four properties through the LandGate and Esri partner directory program and continue to list opportunities for renewable energy projects, paving the way for a greener future. Key Takeaways The State of New Mexico has leased a total of 4 properties for renewable energy development through the use of LandGate's data and Esri technology as of Q3 2024 These leases will generate revenue, contribute to local economic growth, and produce clean energy for the State and the local community LandGate is a Bronze member of the Esri Partner Network. All of LandGate's data layers may be found through Esri and utilized through Esri GIS technology. LandGate + Esri: The State of New Mexico Success Story New Mexico is charging ahead with bold Renewable Portfolio Standards, aiming for 40% renewable electricity by 2025 and an impressive 100% by 2045. With 9 million acres of state-managed land, the New Mexico Land Office is uniquely positioned to drive these goals forward while generating additional revenue through land leases. In early 2023, the state listed a 640-acre property for solar energy and battery storage on LandGate using Esri technology. The listing sparked significant interest, attracting multiple qualified offers. By June 2023, a winning lessee was selected, and as of Q2 2024, development on the site is kicking off. This project not only brings New Mexico closer to its renewable energy goals but also highlights the state’s commitment to a greener, more sustainable future. Exciting times are ahead as New Mexico turns its renewable energy vision into reality! This project not only brings New Mexico closer to its renewable energy goals but also highlights the state’s commitment to a greener, more sustainable future. Exciting times are ahead as New Mexico turns its renewable energy vision into reality! This is a shining example of how the State is driving clean energy success through LandGate's marketplace and shared data with Esri. So far, four listings have closed, paving the way for two solar farms and two wind farms to rise on State property. And they’re not stopping there! New Mexico is building on this momentum by listing even more properties for clean energy projects, including an impressive 27,000-acre site in Hidalgo County. The future of renewable energy in the State is brighter than ever! Renewable Energy Leases on State Land As of January 2024, nearly half of U.S. retail electricity sales are driven by mandatory renewable portfolio standards, and the momentum toward clean energy is only growing. States, localities, and public utilities are making big investments in renewables this year—and public land plays a critical role in achieving these ambitious goals. Government agencies can lead the charge by leasing their properties to renewable energy developers, turning unused land into clean energy production while generating reliable, long-term revenue. With LandGate and Esri, public landowners can easily digest complicated data layers and connect with a unique network of renewable energy developers and investors. Whether you’re working with managed bids, RFPs, or specific procurement rules, we’ve got you covered. Best of all, there’s no obligation to accept offers and no commissions—just opportunities. Curious about the renewable energy potential of your agency’s properties? LandGate is proud to be a Bronze member of the Esri Partner Network, providing innovative solutions for property analysis. Schedule a call with our government team today or explore more of our data below. Let’s power the future together!
- Data Center Development on Government Property
In recent years, the demand for robust and efficient data centers has soared, driven by the explosive growth of digital information and the pressing need for data security. With government property offering vast tracts of land, often with existing infrastructure, the potential for developing data centers on such sites is gaining attention. Leasing government property for data centers not only leverages underutilized public assets but also presents economic opportunities, from job creation to enhancing local technological capabilities. As we delve into the intricacies of establishing data centers on government property, we'll examine the benefits, challenges, and strategic considerations involved. Does your government agency own vacant land or underutilized property? Consider leasing it for data center development to generate revenue and contribute to local economic development and technological advancement. LandGate helps government agencies lease properties for data centers for free! Book a free consultation call below: Benefits of Data Center Development on Government Property Leasing underutilized government properties for data center development can provide significant advantages for both public agencies and the private sector. The benefits of data center development on government property include revenue generation, economic growth, technological advancement, revitalizing government property, and facilitating environmental remediation efforts. 1) Revenue Generation Leasing government-owned land for data centers provides agencies with a new long-term revenue stream through lease payments paid by the data center developer. These funds can be reinvested into essential public services and infrastructure. Additionally, data center development on government property can also generate indirect revenue through increased tax revenues and economic activity in the surrounding area. Loudoun County, Virginia serves as a great example of the benefits of increased tax revenues from data center development . The exponential growth of data centers in Loudoun County has boosted tax revenue by an estimated $890M, covering most of the county's $940M operating budget. A data center costs the county just $0.04 per $1 of tax revenue, compared to $0.25 for typical businesses. Thanks to this windfall, Loudoun County has the lowest real property tax rate in Northern Virginia, about 25% lower than neighboring counties. 2) Economic Growth Data center development on government property provides significant economic benefits by attracting new businesses, creating jobs, and stimulating economic growth. Data centers require a large workforce for construction, operation, and maintenance, providing employment opportunities for local residents. For example, in Loudoun County, data center development alone has created 12,000 jobs. Additionally, data center development also lead to broadband deployment the development of ancillary businesses and services in the area, such as restaurants, housing, and retail, further boosting economic growth. 3) Technological Advancement Data centers are crucial components of our modern digital infrastructure. By developing data centers on government property, agencies can support the growth and development of technology in their communities. This not only brings new technology jobs but also enhances technological infrastructure and access to high-speed internet, which is essential for both businesses and individuals. 4) Maximize Government Land & Property Utilizing government land for data centers offers a chance to revitalize underutilized properties. Many government-owned lands sit idle, presenting an untapped resource for economic growth. By converting them into data centers, public agencies can transform neglected areas into vibrant digital hubs. This not only optimizes land use but also enhances and revitalizes these spaces, benefiting the environment. Additionally, data centers can attract further investment and development, creating a ripple effect that extends innovation benefits beyond the initial site. 5) Facilitates Environmental Remediation Efforts The development of data centers on government-owned properties can facilitate environmental remediation efforts on sites previously deemed unsuitable for other types of development, thereby improving land value and promoting sustainable land use. As large land sites for data centers becomes more scarce, properties such as brownfields and contaminated sites will start to become attractive for data center developers. Many government agencies own brownfield properties, and leasing these properties for data centers presents a great opportunity for remediating these sites while generating revenue and contributing to local economic development. Types of Government Properties Suitable for Data Centers Most types of government-owned properties are suitable for data centers. The main types of government properties suitable for data centers are vacant land, military bases, and brownfields and contaminated sites. Vacant Land: Vacant, underutilized land owned by government agencies can also be utilized for data centers. These properties often have existing infrastructure such as roads, water and power lines, which can reduce development costs for data center developers. Additionally, these sites may be located in areas that are ideal for data centers due to factors such as low risk of natural disasters or proximity to major fiber-optic networks. Brownfields & Contaminated Sites: As large properties suitable for data centers becomes scarce, placing data centers on brownfields and other contaminated sites becomes an attractive option. There are thousands of these government-owned properties throughout the U.S., many of which are currently underutilized, even though these types of properties can still be utilized for development purposes with proper remediation efforts. Military Bases: Many military bases have been closed or restructured in recent years, leaving behind large tracts of land with existing infrastructure that can be repurposed for data center development . These properties are often already equipped with high levels of security and reliable utility systems, making them attractive options for data centers. Challenges & Considerations of Data Centers on Government Property While developing data centers on government property offers many benefits, there are also challenges and strategic considerations that must be taken into account. The challenges of data center development include navigating regulatory requirements, managing public perception of data centers, and maneuvering strategic planning considerations. Regulatory Requirements for Data Centers Government-owned properties may have specific regulations or zoning restrictions that need to be followed, which can impact the design and development of a data center. It's essential to thoroughly understand these requirements before beginning any plans for data center development on government property. Public Perception of Data Centers & Community Engagement The development of data centers on government property can sometimes face resistance from local communities who may have concerns about noise, traffic, and other potential impacts. It may be crucial to engage with the community and address their concerns through transparent communication and education about the benefits of data centers. Strategic Planning for Data Centers Data center development on government property requires careful strategic planning to ensure long-term success. Factors such as location, power availability, and future expansion plans must be carefully considered in the initial stages of development to avoid any potential setbacks or limitations in the future. When it comes to utilizing brownfields and contaminated sites for data center development, even more planning and due diligence is required to ensure that the site is developed and remediated safely. Property Qualifications for Data Centers There are various factors that affect whether or not a specific property qualifies for a data center lease, regardless of if it is a brownfield or contaminated site. The main property qualifications for data centers are location, acreage, proximity to power sources, and fiber optic connectivity availability. Property Location: Location is the key determinant of a property's suitability for a data center. Ideal sites are characterized by robust connectivity, a large population base, favorable tax laws, affordable and reliable power, low natural disaster risk, and direct access to renewable energy. Property Size: Today's standard 40+ megawatt data centers require at least 10 acres of land, although 40+ acres is considered ideal. The larger the property, the more suitable it is for a data center. Proximity to Power Sources: Data centers demand rapid access to power. Therefore, locations near or adjacent to substations and transmission lines are optimal for such facilities. However, this proximity is not a necessity. Large data center projects typically involve upgrading the existing power grid and building their own substations to ensure sufficient energy supply. Developers are often willing to invest in new substations to support their projects. Fiber Optic Connectivity: Data center sites must have access to fiber optic infrastructure, which is continually improving and often found in highly developed areas. However, the absence of fiber is not necessarily a dealbreaker. If a potential site lacks fiber optic infrastructure, data center developers can efficiently and cost-effectively extend fiber to the location, provided there is available space in the public right-of-way for installation. How to Lease Government-Owned Property for Data Centers LandGate assists government and public landowners with leasing properties for data centers. Our marketplace allows government agencies to advertise available properties for lease directly to a wide network of data center developers actively searching for suitable properties. If you're interested in discussing the potential of your agency's specific properties to be leased for data center development, book a call with the government team at LandGate here:
- Biden Administration Plans AI Data Centers on Federal Land
The Biden administration has unveiled an ambitious initiative aimed at fostering the development of AI-focused data centers on federal lands, a move poised to accelerate innovation while addressing key environmental and infrastructural challenges. This announcement highlights the administration's commitment to advancing artificial intelligence while ensuring the responsible use of public resources for long-term sustainability. The Vision Behind the Plan The rapid growth of artificial intelligence and machine learning technologies has created an unprecedented demand for data centers—facilities critical for processing and storing immense volumes of information. However, the environmental impact of these centers, from energy consumption to water usage, has drawn increasing scrutiny. Recognizing this challenge, the White House is proposing to allocate federal land for data center projects that emphasize sustainability and resilience. By leveraging federal lands, the administration aims to create centralized hubs for data processing that not only meet the growing demands of the AI industry but also set new benchmarks for eco-friendly design. This move is expected to address operational challenges, such as securing reliable power supplies and managing significant cooling requirements, while alleviating strain on private land development. Sustainability at the Core Central to this initiative is a focus on minimizing environmental impact. Federal officials have emphasized the role renewable energy will play in powering these data centers. Plans are expected to involve collaborations between tech companies, energy providers, and environmental agencies to integrate solar, wind, and geothermal energy sources, reducing the carbon footprint of these facilities. The use of advanced water cooling and energy-efficient technologies will also be encouraged to optimize operations without depleting local natural resources. Early discussions have floated the idea of creating "green" data centers that can serve as models for the industry, further underscoring the administration's commitment to climate-conscious policies. Opportunities for Data Center Developers on Federal Land For developers, this initiative is poised to unlock significant opportunities. By tapping into federal land, developers may gain access to affordable and scalable real estate options at strategic locations. Additionally, partnerships with the federal government could provide potential financial incentives, streamlined permitting processes, and increased access to renewable energy infrastructure. The initiative is particularly appealing for developers looking to pioneer next-generation facilities. With AI now driving demand for faster processing speeds and greater data storage capabilities, developers who can integrate cutting-edge technology with the administration's climate goals stand to gain a competitive edge. The LandGate platform allows developers to filter for federal land, with data layers available for fiber optics, power sources, and other data center infrastructure. Challenges on the Horizon Despite its promise, the initiative is not without its challenges. Questions surrounding land use policies, water rights, and community impact are likely to arise. Additionally, transitioning these large-scale projects from conception to implementation requires balancing regulatory compliance with rapid technological advancements. Developers will also need to adhere to strict environmental and ethical guidelines established by the government to ensure transparency and address public concerns. The unpredictability of AI legislation, as regulators continue to grapple with its broader implications, could also pose hurdles. What It Means for the Future This federal land proposal marks a pivotal step toward aligning technology growth with environmental stewardship. By fostering partnerships between the government and the private sector, the Biden administration is paving the way for an AI-powered economy that prioritizes sustainability. For developers, this initiative offers not just an opportunity to meet the surging demand for data centers but also a chance to shape an environmentally responsible industry standard. Data center developers and tech leaders should closely monitor forthcoming announcements and policy updates. With the AI revolution showing no signs of slowing down, those prepared to innovate within these frameworks could play a critical role in shaping the digital infrastructure of tomorrow. To learn more about LandGate’s platform and tools for data center developers, schedule a demo with our dedicated energy markets team.
- Georgia Data Center Analysis
Georgia has over 80 facilities for data centers in the United States and plays a significant role in its overall contribution to the country’s data center economy. LandGate data shows that Georgia hosts multiple data center types, ranging from colocation to enterprise and hyperscale projects. Considering a surge of over 50% of growth over the last year, the Georgia markets have shown promising prospects for data centers in 2024. Georgia Top Data Center Markets Want to read more? Access the full report below:
- Understanding Wholesale and Retail Energy Pricing
Electricity pricing is fundamental to the operation of energy markets , determining how energy is bought and sold across the grid. Two primary systems—zonal and nodal pricing—shape the way energy prices are calculated, alongside retail pricing, which impacts end consumers. Zonal Energy Pricing Zonal pricing divides the electricity grid into large geographical zones, assigning a single average price to electricity within each zone. This approach simplifies pricing for market participants but comes with limitations. By averaging costs across a zone, it often fails to reflect the true cost of delivering electricity to specific locations within that zone. This can result in inefficiencies, such as underinvestment in areas with high congestion or over investment in areas where the average price masks low demand or minimal grid constraints. Zonal pricing is commonly used in regions with less complex grid structures. While its simplicity is advantageous for some markets, its lack of granularity can hinder efficient decision-making in areas where transmission constraints and local demand vary significantly. Nodal Energy Pricing Nodal pricing, in contrast, assigns a unique price to electricity at each node—a specific connection point on the grid. This method considers local demand, generation costs, and transmission constraints, making it more accurate than zonal pricing. By reflecting the actual cost of delivering electricity to individual locations, nodal pricing provides stronger price signals that incentivize efficient grid operation and investment. A specialized form of nodal pricing, Locational Marginal Pricing (LMP), calculates electricity prices at each node based on the incremental cost of serving an additional unit of load. LMP is widely regarded as the most efficient pricing mechanism for deregulated electricity markets, as it accounts for real-time grid conditions and promotes resource optimization. Retail Energy Pricing Retail pricing represents the cost that end-use customers—including residential, commercial, and industrial consumers—pay for electricity. Retail prices encompass wholesale electricity costs, such as LMP in nodal markets, as well as transmission and distribution fees, taxes, and regulatory charges. These prices vary significantly based on location, consumption patterns, and the chosen electricity supplier. Retail customers generally benefit from stable and predictable pricing structures, often shielded from the volatility of wholesale markets. However, retail prices can still be influenced by the efficiency of the wholesale pricing system—zonal or nodal—underpinning the electricity market. Wholesale vs. Retail Electricity Pricing Understanding the distinction between wholesale and retail electricity pricing is crucial for comprehending how energy markets function and how prices are determined for end consumers. Wholesale Electricity Pricing Wholesale electricity prices are the rates at which electricity is bought and sold between generators and retailers before reaching the end consumer. These prices are typically determined through competitive markets and can fluctuate based on several factors: Supply and Demand Dynamics : Wholesale prices are highly sensitive to changes in electricity supply and demand. For instance, during periods of high demand or limited supply, prices can surge. Conversely, an oversupply can lead to lower prices. Fuel Costs : The cost of fuels used in electricity generation, such as natural gas or coal, directly impacts wholesale electricity prices. An increase in fuel costs can lead to higher wholesale electricity prices. Transmission Constraints : Limitations in the transmission network can cause price variations across different locations, especially in nodal pricing systems where prices are set at specific grid points. Retail Electricity Pricing Retail electricity prices are the rates charged to end consumers for their electricity usage. These prices encompass several components beyond the wholesale cost of electricity: Transmission and Distribution Costs : Expenses related to delivering electricity from power plants to consumers, including maintenance of power lines and infrastructure. Administrative and Operational Costs : Costs associated with billing, customer service, and other operational activities of the utility or retail provider. Taxes and Regulatory Fees : Government-imposed taxes and fees that support energy programs, infrastructure development, and other regulatory requirements. Profit Margins : Retailers include a margin to ensure profitability and cover business risks. Key Differences Price Stability : Wholesale prices are subject to frequent fluctuations due to market dynamics, whereas retail prices are often more stable, providing consumers with predictable billing. Cost Composition : Retail prices include additional costs beyond the wholesale price, such as transmission, distribution, and administrative expenses, leading to higher rates for end consumers compared to wholesale prices. Regulatory Oversight : Retail prices are often regulated to protect consumers from excessive rates, while wholesale prices are typically determined by market conditions. Understanding these differences is essential for energy developers and consumers alike, as they influence decisions related to energy production, investment, and consumption. Nodal Pricing vs. Zonal Energy Pricing The electricity grid relies on pricing mechanisms to manage the flow of energy efficiently and ensure fair costs for consumers. Zonal and nodal pricing systems represent two approaches to achieving this goal, each with its strengths and challenges. Key Differences Granularity : Nodal pricing provides detailed price signals at individual nodes, while zonal pricing averages costs across broader geographical areas. Efficiency : Nodal pricing is generally more efficient, reflecting the true costs of electricity delivery and incentivizing investments that enhance grid performance. Complexity : Zonal pricing is simpler to implement and operate, making it suitable for less complex grids, while nodal pricing requires advanced systems to manage its intricacies. Practical Applications In the United States, zonal pricing is used in regions with relatively straightforward grid operations, while nodal pricing has been adopted in major electricity markets like PJM Interconnection and ERCOT. The granularity and efficiency of nodal pricing make it ideal for markets with significant congestion and diverse grid dynamics, though its complexity requires robust tools for analysis and forecasting. Considering Energy Pricing for Project Development For energy developers, understanding these pricing mechanisms is critical. Nodal pricing, particularly LMP, offers actionable data for project siting, revenue forecasting, and strategic decision-making. Conversely, zonal pricing provides a more generalized view of market conditions, useful for broader assessments but less precise for pinpointing high-value opportunities. LandGate’s PowerTools platform equips developers with comprehensive LMP data, enabling them to navigate the complexities of nodal pricing and optimize their strategies in diverse market contexts. By leveraging advanced analytics, developers can identify lucrative opportunities and stay competitive in the evolving energy landscape. To learn more, book a demo with our dedicated energy markets team.
- Illinois Solar Development Analysis
The state of solar development in Illinois can be evaluated by key factors such as federal and local regulations, incentives, grid interconnection and integration. The current state of development activity in Illinois is growing and can be seen in this analysis summarizing all facets of solar energy project development. We will break down the various federal and state incentives available to solar energy developers in Illinois and how to access them. As of August 2023, Illinois has 121 solar farms already operating with a current capacity of 875 MW1 and a current electricity generation of 5,44,136 MWh. Illinois has a significant amount of operating solar farms compared to the other states in the US, and it has one the largest development of solar farms with 11 solar farms under construction of 105 MW capacity total, 12 planned solar farms with 1,328 MW capacity total, as well as 230 Utility-Scale Queued projects and 17 site control projects. Overall, if all planned and under construction farms go into operating status, Illinois will expand its capacity by 1,433 MW. That’s a 64% growth in capacity for the state! In Illinois, the average solar farm size is 50 acres, producing 9MW of electricity under ideal conditions. So a solar farm in Illinois needs an average of 5 acres per MW of capacity. Want to read more? Get the complete white paper for free: Catch up with the recording of our webinar here:
- Texas Solar Development Analysis
The state of solar development in Texas can be evaluated by key factors such as federal and local regulations, incentives, grid interconnection and integration. The current state of development activity in Texas is rapidly growing and can be seen in this analysis summarizing all facets of solar energy project development. We will break down the various federal and state incentives available to solar energy developers in Texas and how to access them. As of August 2023, Texas has 137 solar farms already operating with a current capacity of 14,460 MW1 and a current electricity generation of2,666,105MWh . Texas has a significant amount of operating solar farms compared to the other states in the US, and it has one the largest development of solar farms with 19 solar farms under construction of 4,790 MW capacity total, 64 planned solar farms with 19,500 MW capacity total, as well as 514 Utility-Scale Queued projects and 24 site control projects. Overall, if all planned and under construction farms go into operating status, Texas will expand its capacity by 24,470 MW. That’s a 70% growth in capacity for the state! In Texas, the average solar farm size is 100 acres, producing 25 MW of electricity under ideal conditions. So a solar farm in Texas needs an average of 4 acres per MW of capacity. Want to read more? Get the complete white paper for free: Want to learn more? Catch the recording of the webinar where we went in-depth talking about all things solar development in the great state of Texas.











