The dramatic increase in the use cases for data storage, artificial intelligence and cloud computing have resulted in an atmospheric level rise in the demand for data centers, and the question of providing sufficient power to support those data centers has become paramount. Simultaneously, there has been an increasing emphasis on utilizing green energy as corporations and end-market consumers are seeking ways to reduce greenhouse gas emissions as well as their own carbon footprints. The co-location of data centers with renewable energy projects, such as solar and wind farms, offers a unique opportunity to address both energy needs and sustainability goals.
While co-location may seem straightforward from a real estate or title perspective—akin to a typical commercial ground lease—there are several legal, environmental, and operational factors that developers and stakeholders need to consider before breaking ground. Examining these considerations, including potential environmental concerns, equipment lifespan, energy load implications, and the overall impact of co-location are critical in determining the financial and practical viability of a development project.
