How do data center developers secure power before buying land?

By Razvan Toma · Founder & CEO, Ampervia · Last checked 2026-10-12 · Sources linked below

Quick answer

They tie up the land without buying it, usually with an option or a purchase conditional on the grid answer, then file the connection request. Only once capacity is confirmed do they complete the purchase. This keeps the early spend to studies, fees and option premiums.

Key facts

In Spain, a demand access permit must now name the activity code it will serve, so the request has to be filed for a data center from the start (BOE, RDL 7/2026).
Italy’s DL 21/2026 lets a project be authorised with a temporary medium-voltage connection while the definitive one is built (art. 8).

The usual sequence

Screen nodes with published capacity.
Option the land (or sign a conditional purchase).
File the access and connection request.
Receive the connection offer; pay any reservation guarantee.
Exercise the option and seek planning.

Why banks rarely fund this stage

Lenders secure loans on land value. Studies, grid fees and permit work have no collateral until the connection is granted, so this stage is funded with equity, seller options or staged payments from a buyer.

Questions

What if the grid answer is no?

With an option, the developer walks away having lost the premium and study costs, not the land price.

Sources

Terms on this page: Land option · Access and connection permit · Connection offer · Capacity reservation guarantee

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