Datacenter Land: Why Grid Connection Changes Everything

Land without power is no longer an asset: it's a liability. For data centers, available power has become the first selection criterion for a site, ahead of location or price per square meter.

Land Alone is No Longer Enough

For a long time, the value of industrial land was measured by its size, accessibility and buildability. For a data center project, these criteria are still necessary, but no longer sufficient. The central question is now grid connection: without available or reservable power, a plot cannot host a project, however good it may otherwise be.

This shift changes how landowners should think about their assets. In France, land that has already started a connection process with RTE or Enedis carries a decisive advantage over comparable land that hasn't taken any steps in that direction.

Feasibility Study and PTF: Two Steps, Two Different Values

The process of connecting to the public electricity transmission or distribution network involves several steps, two of which are particularly important for how land is valued.

The feasibility study

An optional step with RTE. It provides, typically within about six weeks, an initial estimate of the feasibility, cost and timeline for connection. It is not binding on the grid operator: it's a useful indicator to guide a project, but not a contractual commitment.

The PTF (Technical and Financial Proposal)

Comes at a later stage, following a formal connection request. It sets out the technical and financial terms of connection and commits the grid operator on that basis. Land that already holds a PTF has cleared a stage many others haven't reached yet.

This distinction explains why two plots of land, otherwise comparable in size and location, can have very different values depending on how far their connection file has progressed.

Demand Driven by Growing Computing Needs

The rapid growth of AI and cloud-related projects has increased pressure on available grid connection capacity. Connection delays and complexity are pushing many investors to prioritize land where this work has already begun, rather than starting from a site with no electrical groundwork at all.

Key point: This dynamic directly benefits landowners who have started a feasibility study or obtained a PTF, even when the original project behind that step didn't go ahead. Land from an abandoned renewable energy project, for instance, can retain a valuable PTF for a data center project.

How Datalok Supports these Transactions

Beyond its colocation marketplace, Datalok runs a dedicated real estate advisory activity covering data center land acquisitions, including sites with grid connection potential. We currently support several investors with Letters of Intent for the rapid acquisition of this type of asset.

Do you own land with a feasibility study or a PTF? Or are you an investor looking for this kind of opportunity? Our team can help you qualify the opportunity and find the right match.

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