Stewart Title's Brian Chen On Data Center Development At Bisnow’s DICE National Event On May 20

The U.S. data center market has made tremendous strides over the past several years, growing by 34% from 2023 to 2024 alone.

Some of the world’s biggest technology companies, such as Meta, Amazon and Nvidia, announced plans in January for massive investment in the sector, reaching $676B. This striking figure is driven by the need for greater data capacity to handle more complex artificial intelligence infrastructure and cloud computing capabilities.   

But even with eye-catching growth and record-low vacancy, data centers still face several very crucial obstacles — namely, land constraints and power availability.

“Nobody has a magic wand to solve the power solution,” said Stewart Title's Vice President of Sales Brian Chen. “We’re seeing developers start to look outside of the primary markets and plant roots on the fringes.”

Chen, who works solely on complex energy and infrastructure projects for Stewart Title's Energy and Infrastructure Group nationally, will be speaking at Bisnow’s Data Center Investment Conference and Expo: National on May 20 through 22. Click here to register. 

Bisnow spoke with Chen to learn more about what trends are shaping the U.S. data center market, what hot spots are attracting investors and what role Stewart Title plays in getting data center developments across the finish line.

Bisnow: How do you view the current state of the U.S. data center market? What trends are you seeing?

Chen: The market itself is booming. There's a lot of opportunity to be had in all of the primary markets, but also with the quick growth and development of the tertiary markets and even developments outside on the fringes. We’re seeing a lot of developers pushing outside the normal areas that you'd see at data center development. This is especially trending with the artificial intelligence side of things. Developers and hyperscalers are becoming more open to the idea of chasing land, power and water access than ideal location. 

Bisnow: You will be speaking on the “Site Selection, Permitting and Lease Negotiation” panel at this event. How is the market navigating data center development, and what hot spots are attracting investors?

Chen: Compared to just a few years ago, the market has certainly evolved, but there is still a long way to go. When you're looking at these large hyperscale developments that are happening more frequently now, there's a lot of learning that's still going on between developers, tenants and utilities. These projects now require increasingly larger land parcels for completion. Securing sufficient land, reliable power and water is essential to ensuring a project's viability.

Texas is on the leading edge in terms of popularity. Lancium and Crusoe made a big announcement of their 1.2-gigawatt data center they’re going to build in Abilene. Ohio, Arizona, Georgia, Illinois and other secondary and tertiary markets are going to be easier to access and cheaper, both on the power and real estate side.

Bisnow: What role does Stewart Title play in supporting clients during the early phases of data center development?

Chen: Stewart Title plays a vital role in providing developers, lenders and investors with a comprehensive understanding of real estate and mineral-related risks. We work closely with developers, or those acquiring the land, and search title for them, making sure that there are no fatal flaws within the land itself. Our goal is to understand what's going on that land and if there are any setbacks that may prevent them from developing a project. 

We also assist developers in understanding the zoning regulations for their project sites. Engaging our team early in the process ensures they have a clear understanding of potential risks before making significant financial commitments. This proactive approach helps developers make informed decisions and mitigate unforeseen challenges. 

Bisnow: What are some of the biggest challenges confronting the data center market nationally?

Chen: Power availability and accessibility is the most obvious challenge out there in the market right now. Everyone will also be interested in understanding how we can piece together the land perspective of these deals and navigate some of the challenges that are out there in more rural areas.

That’s where we come into play. Land is going to be another hot topic, trying to find a secure piece of land that's close to power. Accessibility to power, water and fiber are becoming one of the bigger challenges out there.

Bisnow: What do you think attendees will be most excited to hear about at this event?

Chen: People are going to be curious about what steps have been taken since last year to try and solve the power issue. Coming from last year’s conference, the focus has changed a lot from an environmental, social and governance perspective. 

It was all about how the power we get to these data centers has to be clean or carbon-neutral. Now, the tone seems to have shifted to use whatever power is most accessible. I'm interested to see if that tone has shifted with developers as well.

This article was produced in collaboration between Studio B and Stewart Title. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.