Large-scale data center operators are reshaping development models by directly managing power sourcing, grid interconnection, and on-site generation. Rather than relying solely on utilities, developers are stacking grid access with batteries, generators, and long-term energy contracts to guarantee capacity and pricing. In many markets, megawatts—not square footage—are the scarcest commodity, forcing power strategy to move upstream into site acquisition, underwriting, and construction sequencing.

Traditional real estate underwriting breaks when power becomes the bottleneck. Sites with faster interconnect paths or substation proximity now command premiums regardless of land cost. Construction schedules are increasingly dictated by utility upgrades rather than permitting or vertical build timelines. Capital providers are underwriting power risk alongside lease credit, changing how deals are priced, structured, and financed.

Power diligence will rival environmental and zoning reviews. Developers without power expertise will face execution risk, schedule slippage, and capital cost overruns. Investors will increasingly demand power-readiness documentation before committing equity.

Expect deeper integration between utilities, developers, and capital markets. Substation co-development, long-dated PPAs, and on-site generation EPC contracts will become standard exhibits in purchase agreements. Markets with constrained grids will see bifurcation: assets with firm power clear at premiums, while power-constrained sites stall despite strong tenant demand.

Data center development is no longer a real estate problem—it’s an infrastructure problem. Power access, delivery certainty, and pricing stability now define asset value. Developers who can control megawatts, not just buildings, will set the pace for deals, capital flows, and market leadership.