Only 0.5% of Land Is Viable for Large-Scale Data Centres — Here's Why That Matters
Bisnow · 14 April 2026
TL;DR
Graham Williams, president of US-based data centre developer Tract, says just 0.5% of American land is genuinely suitable for large-scale data centre development once power access, water availability, and skilled labour proximity are factored in. Speaking on Bisnow's First Draft Live, Williams explained that a national shortage of roughly 300 000 electricians compounds site scarcity, making remote locations impractical regardless of land cost. The US data centre market — currently valued at around $270 billion — is projected to reach $700 billion by 2034, driven largely by artificial intelligence and cloud demand. Despite this growth, community opposition (NIMBYism) and strained power grids are increasingly constraining where new facilities can be built.
Our take
South Africa's data centre sector is still maturing, but the constraints Williams describes — power reliability, water access, and skilled trades — resonate sharply here. Eskom instability and municipal water pressures already limit viable sites to a handful of nodes, primarily in Gauteng, the Western Cape, and increasingly KwaZulu-Natal. For commercial property investors and developers eyeing data centre conversions or greenfield builds, this global scarcity dynamic is actually good news: well-located, power-stable industrial land near fibre corridors is likely to appreciate as hyperscalers and colocation operators compete for limited options. Landlords holding large-format industrial assets near substations should be reviewing their lease structures now. For buyers and tenants in surrounding residential areas, the NIMBYism trend is worth watching — data centre neighbours can affect rezoning outcomes and municipal infrastructure planning. Local agents active in industrial nodes around Midrand, Samrand, and the Cape Winelands tech corridor should be tracking these conversations closely, as demand signals from this sector increasingly influence land valuations.