Charlotte is in the early stages of working toward a new data center policy amid a development moratorium, part of a growing wave of project pauses happening in jurisdictions around the country.

Since its 150-day moratorium began in June, city staff has been doing research, engaging with stakeholders and working to create policy recommendations, Charlotte officials told Bisnow. Part of that research involves looking at how other cities and counties have utilized moratoriums in recent months, City Council Member Ed Driggs said.

The steps the city takes during its moratorium are representative of how more than 100 local governments across the U.S. are grappling with an issue that has sparked escalating backlash, driven by data centers’ massive demand for water and power. The outcome of Charlotte’s moratorium could determine whether major developers like American Tower Corp. can proceed with their projects.

“We are experiencing in Charlotte the same sort of controversy you’re seeing elsewhere in the country, over their impacts and lack of regulation,” Driggs said in an interview.  

Charlotte approved its moratorium following months of heated debate over the build-out of data centers in the city, largely sparked by American Tower’s controversial proposed project that would sit on 58 acres near Reedy Creek Nature Preserve. 

The city hasn’t approved American Tower’s rezoning request to build its data center, and a hearing for the project was delayed from June until at least November. American Tower declined to comment for this story. 

The 150-day pause is slated to end in November, but Driggs said there is a chance it could get extended.

“There’s a possibility, depending on what work gets done during the 150 days, that the moratorium could be longer,” he said.

Charlotte is a hot spot for data center development, housing roughly 40 operating facilities, according to Data Center Map. North Carolina is home to 95 active data centers.

Several cities in North Carolina have approved moratoriums as the issue reaches the state level nationwide. Earlier this month, nearby Davie County passed its own one-year data center moratorium. New York became the first state to impose a yearlong ban on data center construction as a handful of other states consider similar measures.

While supporters of data centers say the facilities will stimulate the economy and generate tax revenue, opponents cite concerns over environmental impacts — especially as North Carolina grapples with a drought — and a potential spike in power costs for consumers. 

Duke Energy said in the spring that 6 gigawatts of data center demand was in its development pipeline in the Carolinas, an amount that could power roughly between 3 million and 6 million homes. Duke last month proposed an 18% electric rate increase for households, but it cut that request to around 9.5%, Axios reported this week.  

Newly sworn-in Mayor Rob Harrington told Bisnow in an email that the moratorium in Charlotte “allows staff the necessary time to consider questions before any additional development moves forward.” He said he looks forward to reviewing the feedback to find the best path forward. 

The site near 8036 Hood Road in Charlotte where American Tower Corp. has proposed a data center

As the moratorium continues, data center projects that were in development before the pause was approved can continue construction. 

Data center projects in Charlotte include PowerHouse Data Centers’ plans for a 122-acre campus off of University City Boulevard and Digital Realty’s plans for a 12 megawatt, four-story data center at 725 E. Trade St. Spokespeople for the two companies didn’t respond to requests for comment on the status of their projects.

On Aug. 20, the city council is slated to hold a town hall on the moratorium, according to the Charlotte Business Journal.

At the end of the moratorium, Charlotte city staff is expected to present its findings to the council, and members will then hold discussions and gauge community input before deciding on policy changes, Driggs said.  

“We found that we could establish this 150-day pause while we look at our policies and consider whether, in light of the rise of AI and the growth and demand for data centers, a more differentiated policy is called for,” he said.

If it extends the moratorium to a one-year period, Driggs said Charlotte could better prepare itself for a future of data center development.

Opposition to data center development has intensified across the U.S.

A fast-growing number of states and local governments have passed or are debating moratoriums on new data center construction. This wave of data center bans spreading across the country threatens to further impede an industry already struggling to secure enough land and power to meet surging demand. 

Bisnow/Jon Banister

Virginia data center opponents protest outside an industry event in 2023.

Data centers have emerged as a major policy concern at the state, local and federal levels. Large-scale projects routinely face heated community opposition due to resident fears about environmental impacts and local quality of life, while broader concerns about these facilities’ massive power consumption generate national headlines. 

These concerns, combined with anxiety about the consequences of the artificial intelligence technologies they enable, have led data centers to become deeply unpopular. Opposition to data centers is proving to be a fruitful position for politicians across the political spectrum and at every level of government.

Over the past three years, efforts to manage or restrict data center development in the industry’s major hubs have risen steadily, but in recent months, many efforts have emerged to impose moratoriums that would pause data center development altogether. These initiatives are gaining traction in hyperscale development hotbeds and locations that draw little interest from data center builders. 

In Congress, Democratic lawmakers Bernie Sanders and Alexandria Ocasio-Cortez unveiled a data center moratorium bill in March. While it faces long odds of becoming law, similar bills at the state level are inching closer to becoming reality. 

Since the start of this year, 14 different states have considered moratoriums on new data center construction. This month, the New York Legislature passed a bill pausing all new data center development for a year. Should Gov. Kathy Hochul sign it into law, New York will become the first state to have a data center moratorium go into effect. 

New York’s potential moratorium comes on the heels of the Maine Legislature passing a similar data center pause, which was vetoed by Gov. Janet Mills in April.

Most state-level moratorium bills propose pausing data center construction for between one and three years while studies are conducted on the facilities’ environmental and economic impacts. Some outliers, like Vermont, have proposed longer bans. The bills generally focus only on pausing the construction of new data centers, although a Wisconsin bill would also halt ongoing operations at existing data centers.

Meanwhile, dozens of county and municipal governments across the U.S. have been passing their own data center bans. Some of these moratoriums have come in areas inundated by large-scale data center projects, like DeKalb County, Georgia, or communities where a proposed data center project proved deeply unpopular, such as in Normal, Illinois. Some towns, like Mansfield, Massachusetts, have passed bans despite drawing no interest from data center developers. 

For many in the data center sector, the political peril facing the industry presents the greatest challenge constraining its growth. Companies are bracing for the possibility that an industry already strapped for developable land may soon find that its options are even more limited.

Below is a list of state and local data center moratoriums that have been proposed this year.

State Moratoriums

New York

Earlier this month, the New York Legislature passed a one-year moratorium on siting, construction or commencement of operations of data centers 20 megawatts and larger. The bill requires the governor’s signature to become law, and it remains unclear whether she plans to sign or veto it.

The bill initially called for a three-year moratorium on new data center development before being amended to just one. It also requires the state’s Public Service Commission to draft new rules regulating data center power consumption. And it mandates an extensive environmental impact report from the Department of Environmental Conservation that would include regulatory and legislative policy recommendations and measure the water and power consumption of data centers already operating in the state. 

Maine

In April, Maine became the first state to have a data center moratorium pass its legislature, with lawmakers approving a bill pausing the development of new data centers in the state larger than 20 MW until November 2027. The governor then vetoed the bill.

Still, a similar bill could be coming in the near future. Despite her veto, Mills has said she supports a temporary pause on new data center construction and would have signed the bill if it had included an exemption for a specific data center project already underway in the state. 

Virginia

A torrent of data center legislation has advanced in the industry’s largest hub, with more than 60 bills introduced in the most recent legislative session aiming to manage its growth across the commonwealth. One of these bills — introduced by Del. Irene Shin, a Democrat representing Fairfax County — aims to implement a moratorium on all new data centers 1 MW or larger. This pause would last until July 2028 or until all data center grid interconnection requests are fulfilled. The bill remains in committee and was pushed into the next legislative session. 

Maryland

In January, Del. Mark Fisher, a Republican, introduced an emergency bill into the Maryland House of Delegates imposing a ban on data center construction and planning of data centers 100 MW and larger. The bill is in committee. 

Vermont

A bill introduced in January by a group of lawmakers in the Vermont General Assembly aims to implement a moratorium on the siting and construction of new data centers until 2030. During that time, the bill requires the state’s Public Utility Commission to report on how data centers impact Vermont’s natural resources and economy. The bill remains in committee. 

Oklahoma

Oklahoma lawmakers are considering a bill from Republican Sen. Kendal Sacchieri to create a moratorium on data center construction until November 2029. Applying to data centers 100 MW and larger, the pause is intended to give the Oklahoma Corporation Commission time to conduct an impact study. The bill is in committee. 

Michigan

Multiple lawmakers in Michigan have introduced bills that would enact a statewide data center moratorium, preventing local governments and the state’s Public Service Commission from approving these facilities to give officials time to evaluate their impact. The moratorium would last until at least April 2027. While these bills remain in committee, Michigan Gov. Gretchen Whitmer, a Democrat, has been supportive of data center development in the state. 

Minnesota

Introduced by Senate Democrats in March, a Minnesota bill would require the state’s Public Utilities Commission to submit a comprehensive report on the impact of data centers by July 2027 and would ban the construction of new data centers larger than 100 MW until a year after the report’s publication. The bill remains in committee. 

South Carolina

A pair of joint resolutions filed by South Carolina lawmakers in April would prevent local and state government agencies from issuing approvals related to data centers until 2028. The bills would also enact a moratorium on applications for new data centers larger than 5 MW until the state government establishes a comprehensive oversight framework. The bills remain in committee. 

Pennsylvania

A bill introduced this month in the Pennsylvania Senate by Democrat Katie Muth would ban the construction of “high impact” data centers 25 MW and larger for three years. The bill, now in committee, also mandates new studies on the impact of these facilities and authorizes local governments to enact their own data center bans. 

Georgia

Georgia lawmakers are considering a bill that would ban data center construction for a year starting in July. Introduced by Democrat Jaha Howard, the bill remains in committee. A similar bill introduced in the Georgia House of Representatives would pause data center construction until 2029 while the state conducts an impact study. 

New Hampshire

Legislation in New Hampshire calling for a one-year moratorium on data center construction was killed in committee in March.

Wisconsin

A bill introduced in Wisconsin would have been among the most restrictive moratoriums under consideration, applying not just to new construction but also to the operation of existing data centers larger than 100 MW. However, the bill was killed in committee in March. 

South Dakota

A House bill in South Dakota would have temporarily banned the construction or expansion of data centers over 50 MW until July 2027. The bill didn’t advance through committee. 

Local Moratoriums

According to datacenterbans.com and local news outlets, more than 100 cities, towns and counties have also proposed or passed data center moratoriums. 

Alabama

California

Colorado

Connecticut

Delaware

Georgia

• DeKalb County
• Camden County
• Pike County
• Lamar County
• Troup County
• LaGrange
• Clayton County
• Athens-Clarke County
• Monroe County
• Lee County

Illinois

Indiana

• Fulton County
• Starke County
• Dearborn County
• White County
• Putnam County
• Pulaski County
• Indianapolis (proposed)

Iowa

• Dubuque County
• Johnson County
• Clarke County
• Adair County
• Shelby County

Kansas

• Sedgwick County
• Miami County (proposed)
• Harvey County

Kentucky

• Oldham County
• Scott County
• Meade County
• Ashland

Louisiana

Maine

• Bangor
• Wiscasset
• Lewiston
• Scarborough (proposed)

Maryland

Massachusetts

Michigan

Michigan is the most active state for data center moratoriums, with close to 50 counties enacting or considering such bans. The total area in which data center construction is at least temporarily prohibited is roughly the size of Rhode Island.

• Meridian Township 
• Northville
• Soringfield
• Pontiac
• Sterling Heights
• Detroit (proposed)
• Ypsilanti Township
• City of Ypsilanti
• East Lansing
• Howell
• Mason 
• Armada
• Dundee
• Grand Blanc
• Green Charter
• Hayes
• Lenox
• Lodi
• Manchester
• Pittsfield
• Saginaw
• Saline
• South Lyon
• Sylvan
• Taylor
• Tyrone
• Ann Arbor
• Erie
• Delta County (proposed)
• Washington

Minnesota

Missouri

• St. Charles
• Jackson County (proposed)
• Columbia

Nevada

New Jersey

• Princeton Township
• Phillipsburg

New York

North Carolina

• Charlotte
• Chatham County
• Orange County
• Canton
• Boone
• Gates County
• Brevard
• Clay County
• Kings Mountain
• Apex
• Swain County
• Rowan County
• Boiling Spring Lakes
• Hillsborough

North Dakota

• Morton County
• Mercer County
• Dunn County

Ohio

• Jerome
• Lordstown
• Muhlenberg
• Massillon
• Plain
• Vienna
• Washington
• Ashville
• South Bloomfield
• Ironton (proposed)
• Yellow Springs (proposed)

Oklahoma

Rhode Island

Tennessee

• Nashville (proposed)
• Washington County

Texas

Utah

Vermont

Virginia

Washington

Wisconsin

• Port Washington
• Madison
• Manitowoc County
• Cassville Township
• Waterloo Township

A Virginia-based developer is aiming to bring a new 400-acre data center to North Carolina in a county southwest of downtown Raleigh.

PointOne Data Centers submitted an application to the Sanford/Lee County/Broadway Technical Review Committee to build a 90-megawatt center at 4079 Lower Moncure Road in Lee County, the Triangle Business Journal reported.

The first phase of the project would entail the build-out of the 300K SF facility. Construction would begin this fall, with completion in 2028, TBJ reported.

The proposed project would be a $900M investment, according to TBJ. Texas-based CyrusOne, a global data center developer, would own and operate the site. CyrusOne has built more than 60 data centers globally, including one near Research Triangle Park in Durham that it acquired in 2017. Since then, the company has sought to expand its presence in North Carolina. The state currently houses at least 93 data centers, according to Data Center Map.

Data centers have been a controversial issue in the Carolinas over the past year, with several counties and cities imposing moratoriums on new development. Earlier this week, the city of Charlotte approved a 150-day pause on new projects following public outcry. Lee County does not have a moratorium, but in April, it amended its Unified Development Ordinance to clarify where data centers can be located and what standards they must adhere to.

Data center opponents argue that data center development requires intensive water and power usage and can cause noise pollution and neighborhood displacement. In Raleigh, many residents say water usage is critical as the area faces extreme drought conditions.

But a PointeOne executive told TBJ its data center would use very little water due to its closed-loop cooling system. The executive said it would need an initial fill of 200K gallons and that other water usage for things like restrooms would utilize 1,100 gallons per day. 

If the review committee approves the plan, the next step would be applying for a building permit.

The Charlotte City Council has approved a 150-day pause on new data center development, the latest locality to implement a moratorium amid rising national pushback against construction of the facilities.

The council late Monday voted unanimously in favor of the temporary moratorium. The aim of the pause is to allow the city to study data centers’ infrastructure and analyze the environmental impacts they might have on the area.

“We’ve got to dig deeper. We’ve got to really understand not only the legal framework but also the technical information, whether it’s the data itself or the scientific basis behind the impacts to our communities,” Council Member Victoria Watlington said before the vote. “When we can agree on the facts, then we can talk about good policy, and I think that’s exactly what this 150-day moratorium will do.”

The moratorium won’t apply to projects that have already been approved. Projects that are exempt from the pause include those with a valid building permit and those that have a complete application for developmental approval, according to City Attorney Andrea Leslie-Fite.

The city’s vote adds to the growing list of data center moratoriums around the country. Last week, a city in Southern California passed the nation’s first permanent citywide data center ban. New York state is poised to put in place a one-year moratorium.

Charlotte has been considering a moratorium for months. In May, citizens packed a city council meeting for a public hearing where most speakers pushed for the moratorium, citing negative impacts and increased energy costs stemming from what they called excessive water and power usage. Last week, local activists, politicians and an environmental lawyer held a press conference calling on the city council to approve the moratorium, The Charlotte Observer reported. 

American Tower Corp.’s proposed data center in east Charlotte is one controversial project that many have rallied against. The 40K SF project would be off of Hood Road, near a nature preserve. A public hearing on the developer’s zoning request is scheduled for June 15. 

Moratoriums have become common in recent months across the Carolinas, with Durham passing a 60-day moratorium in May and Apex passing a one-year moratorium in April.  

There are more than 90 data centers in North Carolina, according to Data Center Map, and 40 in Charlotte, according to WCNC. 

Council Member Joi Mayo said before the vote that the conversation around data centers “is not about being for or against innovation.”

“Rather, it’s about taking the time to understand the potential impact of a rapidly growing industry and ensuring our policies keep pace with that growth.”

Charlotte residents packed a city council meeting this week to rally in support of a pause on data center development.

The Charlotte City Council held a public hearing during a meeting on Tuesday to discuss a proposed 150-day moratorium. The public hearing was a prerequisite to a planned council vote on June 8. 

The hearing comes after several weeks of growing public pushback against proposed data center projects in the city. Dozens of people were protesting outside, many part of activist groups, according to The Charlotte Ledger. Out of the 36 people who spoke up at the hearing, only five did not support a moratorium, the Ledger reported.

Citizens detailed their anxieties about the presence of data centers in the metro area, with some suggesting the centers be completely banned. They cited negative environmental impacts and increased energy costs stemming from what they called excessive water and power requirements.

Charlotte is facing drought conditions and water restrictions. But large data centers can use up to 5 million gallons of water each day, according to The Brookings Institution. 

“We are concerned that the growth of local data centers may overallocate our limited resources and decreases our ability to respond to drought,” resident and Catawba Riverkeeper Brandon Jones said. “Sustainable water management requires careful planning and robust coordination between all users, including data centers.”

Some spoke directly against American Tower Corp.’s proposed data center in east Charlotte, which has seen opposition at every stage. The project would span 40K SF on a site planned off of Hood Road, near Reedy Creek Nature Preserve. The developer delayed its zoning request until June 15.

“The question for me is, how do we build a footprint that makes Charlotte a national leader in distributed, resilient, redundant infrastructure without devouring our land, our water and our power?” said citizen Craig Reynolds, a business executive, whose question was met with applause.

He asked council members to consider the sheer scale of data center projects, which he said can command “eight to 14 times the combined residential power” of a city.

Another local, Tina Shull, a professor at the University of North Carolina at Charlotte, said she is “deeply concerned” about the impacts of the American Tower data center in her neighborhood, as well as the two already approved hyperscale centers in the city.

“This is a request to stop and make a new plan for data centers entirely,” Shull said. “A 150-day moratorium and an environmental impact assessment are the first steps.”

Resident Larry Shaheen, a commercial real estate lawyer at The McIntosh Law Firm, spoke in favor of data centers, saying they provide “a significant amount of tax revenue that is going to go toward funding important needs of the city of Charlotte.” 

He also said the council doesn’t have the authority to cease construction on an already started project or to change certain zoning classifications. His comments drew audible “boos” from the room.

There has been notable backlash against data centers in communities across the U.S. over the last year, including across the Carolinas. Moratoriums in the region are becoming increasingly common, with Durham passing a 60-day moratorium earlier this month, Apex passing a one-year moratorium in April, and Chatham County imposing a one-year moratorium in February. 

Still, there are more than 90 data centers in North Carolina, according to Data Center Map, and 40 in Charlotte, according to WCNC. More are expected as the rapid artificial intelligence boom continues. 

Fisk University unveiled “Quantum Leap,” the most robust campus master plan in its 160-year history,

Quantum Leap brings an estimated $1 billion project to North Nashville over the next decade. A core element of Quantum Leap is the new $400 million Innovation Center, a data and technology center touted as eco-friendly and non-intrusive, and housed on five undeveloped acres on Fisk’s campus. The center will encompass a 30,000-square-foot academic space and a 70,000-square-foot technology center. The state-of-the-art technology center will power new and existing curriculum and tech-forward interdisciplinary study.

Part of the plan also includes renovated residence halls, a Fisk Arena, a state-of-the-art Student Center, additional parking and modernized learning spaces.

Construction will begin immediately. Construction will be led by the Don Hardin Group and the architecture firm will be Moody Nolan.

Fisk University is a historic and civic cornerstone for the greater Nashville area. 

The Charlotte City Council is prepping to vote on hitting pause on new data center development. 

The council on Monday agreed to hold a public hearing on a data center moratorium on May 26, a prerequisite before it can vote on the moratorium on June 8, according to The Charlotte Observer. 

The debate will center on a possible 150-day moratorium to allow city officials to review the impacts and risks of data centers and to craft regulations around their development. 

At the meeting, some expressed concern that further data center development would drive up electricity costs. Others worried about how such development may be affecting the quality of life in the city because of noise and pollution. 

“This is about our children, this is about our health, and this is about whether families can peacefully live in their homes,” said Dimple Ajmera, an at-large council member, according to a Queen City Nerve report. 

North Carolina currently has more than 90 data centers, according to Data Center Map. The Charlotte metro area has over 30 data centers, with more proposed. 

AREP has plans for a 1.5M SF campus in University City, and Digital Realty is plotting a potentially 3M SF one on Moores Chapel Road. American Tower Corp. is proposing to build a 40K SF facility near Reedy Creek Nature Preserve.

Data centers are currently permitted by right in eight zoning districts in Charlotte without city approval. These districts include residential areas, the Observer reported. 

Any potential moratorium will not affect already permitted plans.

The council’s moves come as local backlash against data centers rises in communities across the Carolinas. Durham passed a 60-day moratorium last week, Apex passed a one-year moratorium last month, and Chatham County passed a one-year moratorium in February. The county was sued in April by a developer after the moratorium was imposed.

Digital Realty has closed its inaugural U.S. hyperscale development fund, an effort that represents a new approach to securing development capital for the world’s largest data center provider.

At the same time, the public REIT signaled a renewed commitment to pursuing private capital strategies to fund new data center build-out, announcing the hire of two executives to help lead its dedicated fund team. 

A Digital Realty data center in Ontario, Canada

The closure of Digital Realty’s first private development fund comes almost exactly a year after it was launched. The fund received $3.25B from a range of institutional investors — including public pensions, sovereign wealth funds, endowments and foundations, corporate pensions, insurance and asset managers, and family offices — to support more than $10B of new hyperscale investment. 

The fund owns 80% of a portfolio of Digital Realty’s stabilized data centers and preleased development sites, including properties in Northern Virginia, Dallas, Atlanta, Charlotte, New York and Northern California. Digital Realty maintains a 20% ownership stake and manages the fund. 

Creating a private development fund was a novel approach to leveraging existing data centers to raise the capital needed to build new ones — a major challenge for developers across the digital infrastructure space. The arrangement allows institutional investors to receive a steady stream of income from the fully leased data centers, while Digital Realty uses the invested capital to cover predevelopment and development costs without relying on project-specific debt. 

Digital Realty told investors the fund is part of a $15B liquidity pool from private capital it calls “dry powder” to bank land and power ahead of demand to be able to deliver capacity on short timelines when Big Tech tenants need it.

“We remain focused on sourcing and delivering hyperscale data center capacity to support our customers’ accelerating requirements, and private capital is playing an increasingly important role in how we prudently and efficiently scale PlatformDIGITAL,” Digital Realty Chief Investment Officer Greg Wright said Monday in a written statement.

“Strengthening our private capital capabilities enhances our customer focus, expands our ability to fund growth, and positions Digital Realty for durable long-term value creation.”

Digital Realty plans to continue using this new private capital strategy to augment the on-balance-sheet financing strategies it has traditionally used to fund new development, announcing Monday that it is adding a pair of experienced executives with private capital and fund management backgrounds to its leadership team. 

Former CBRE Senior Managing Director Michael Yang will join Digital Realty as the firm’s executive director for fund management. Yang previously held various investment management roles at Goldman Sachs, NEPC, GID and AEW Capital Management.

The company also brought on Bradley Petersen to serve as managing director for private capital fundraising. Prior to Digital Realty, Peterson held a similar position at Jamestown LP following stints at Garrison Investment Group and Aetos Capital Real Estate.

Georgia has issued significant tax breaks for data centers since 2018. The tax breaks enabled the state to become a hotspot for data center development. The Atlanta Business Chronicle reports that, as a result of the tax breaks, Georgia has forgone approximately $2.5 billion in revenue in the current fiscal year. Now, some the Georgia legislature want to rein in some of the tax breaks.

Data centers can generate substantial tax revenue for local communities. However, they tend to create few permanent jobs and can consume large amounts of land, water, and electricity.

Besides the tax break issue, the legislature is hoping to ensure that the costs incurred to provide electricity service to data centers are not passed on to residential and retail customers. It would require contracts between electric utilities and data centers to include terms and conditions designed with that goal in mind.

In December, the PSC approved Georgia Power’s plan to build 10,000 megawatts of power primarily to serve data centers.

A California investment firm picked up a data center built in 1992 near Atlanta Hartsfield-Jackson International Airport.

The 760 Doug Davis Drive data center purchased by Menlo Equities.

An affiliate of Menlo Park, California-based Menlo Equities purchased 760 Doug Davis Drive in Hapeville for $65.5M from Digital Doug Davis LLC, an entity registered to the Dallas address of Digital Realty Trust, according to Fulton County records.

The 383K SF facility is off Virginia Avenue and just outside the airport. Digital Realty purchased the facility from Delta Air Lines in 2011 for $63M, according to the Reonomy real estate database.

Neither firm responded to a request for comment as of press time. 

Menlo bought the 33-year-old data center for $171 per SF, a relative bargain compared to the $300 per SF average for data center sales in Georgia over the past year, according to data from Avison Young. The average data center sold for  $465 per SF nationally. 

Buying older data centers and spending to upgrade their power capacity makes sense considering Georgia Power is fielding 8 gigawatts of pent-up demand from potential data center users in Georgia, Avison Young associate Nick Steen said. 

“For an existing data center, upsizing the power is a great opportunity,” Steen said.

Atlanta is the fastest-growing and second-largest data center market in the country after developers tripled capacity by more than 1,200 megawatts over the past year, according to CBRE. The metro area led all major data center markets in 2024 with 700 MW of absorption.

Menlo has been an active investor in the metro area market. In 2020, the firm purchased 30 Ivan Allen Blvd., the 15-story, 281K SF office building in Downtown Atlanta overlooking the Interstate 75-85 interchange. Menlo also purchased the empty office portion of Lincoln Properties’ Echo Street West development in December for around $60M.

Digital Realty owns three other data centers in Metro Atlanta, including the 10-story 56 Marietta St. colocation tower in Downtown Atlanta. Digital Realty also filed an application in May to develop a 1.9M SF data center campus on 97 acres within the former U.S. Army base Fort Gillem in Forest Park. 

The REIT plans to create a mix of hyperscale and colocation facilities at the Fort Gillem project, citing the site’s proximity to Downtown Atlanta, vacancy rates of less than 1% and competitive-costing power as lures for the project, Digital Realty Chief Investment Officer Greg Wright said during an April earnings call. 

The firm also announced a new data center campus in Charlotte earlier this year.

“We think those are both critical markets for us, as we’re really excited to have between those two projects over 600 MW of developable capacity,” Wright said.