Data Center Firm Acquires Farmland for $586 Million
Data center company QTS has purchased thousands of acres from farmers in Pennsylvania, including an 89-acre farm previously used for hog farming, for a combined $586 million. The transaction is part of a significant build-out in the data center sector.
QTS, a data center provider owned by Blackstone, has acquired approximately 1,700 acres of land from 96 families in Salem Township, Pennsylvania, for a total of $586 million. Among the sellers, Marilee and David Kiliti received a $22 million offer for their 89-acre farm, which they had operated for decades raising hogs.
The land's value increased due to its proximity to existing transmission lines and power sources, including natural gas and nuclear facilities. This energy infrastructure is crucial for supporting the substantial power demands of artificial intelligence companies.
Neighboring landowners are now considering a second deal potentially worth $1.3 billion. This development occurs even as some municipalities express concerns and reject new data center constructions due to energy consumption.
The substantial offer for the farmland, previously struggling with debt, illustrates how the AI boom is creating significant financial opportunities beyond the technology sector, impacting traditional industries as well.