land economics
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overview
farmland costs $2,000-$10,000 per acre. industrial land costs $50,000-$200,000 per acre. for a 500-acre hyperscale campus, this difference represents $25-100m in land costs alone—before considering power, remediation, or timeline factors.
key data center states - farmland prices
| state | cropland $/acre | farm re $/acre | notes |
|---|---|---|---|
| texas | $2,710 | $2,970 | lowest tier-1 market |
| arizona | $8,150 | $4,180 | irrigated cropland premium |
| ohio | $9,750 | $9,350 | midwest corn belt |
| virginia | $6,170 | $6,100 | data center alley adjacent |
| north carolina | $5,360 | $5,470 | emerging market |
| georgia | $4,520 | $4,720 | southeast hub |
| nevada | $3,030 | $1,200 | desert/pasture mix |
| iowa | $10,300 | $9,790 | highest productive value |
source: usda nass land values 2025 summary
farmland to urban price ratios
| market | metro home value | cropland $/acre | ratio |
|---|---|---|---|
| las vegas | $451,000 | $3,030 | 376x |
| seattle | $743,000 | $3,480 | 200x |
| portland | $584,800 | $4,440 | 155x |
| dallas-fort worth | $389,500 | $2,710 | 131x |
| phoenix | $470,600 | $8,150 | 112x |
| northern virginia | $604,800 | $6,170 | 99x |
| atlanta | $402,100 | $4,520 | 85x |
| columbus | $334,800 | $9,750 | 36x |
note: home values serve as proxy for developed land costs. actual industrial land prices are typically 5-10x these residential values.
regional price ranges
lowest-cost farmland states
- new mexico: $725/acre (farm), $2,020/acre (cropland)
- wyoming: $1,000/acre (farm), $2,000/acre (cropland)
- montana: $1,230/acre (farm), $1,320/acre (cropland)
- nevada: $1,200/acre (farm), $3,030/acre (cropland)
highest-cost farmland states
- rhode island: $22,500/acre (farm), $32,900/acre (cropland)
- massachusetts: $14,900/acre (farm), $26,000/acre (cropland)
- new jersey: $16,600/acre (farm), $16,400/acre (cropland)
- california: $13,700/acre (farm), $17,940/acre (cropland)
midwest corn belt
- iowa: $9,790/acre (farm), $10,300/acre (cropland)
- illinois: $8,930/acre (farm), $9,850/acre (cropland)
- indiana: $8,850/acre (farm), $8,250/acre (cropland)
- ohio: $9,350/acre (farm), $9,750/acre (cropland)
industrial land comparison
| region | industrial land $/acre | farmland $/acre | multiple |
|---|---|---|---|
| midwest/ohio | $52,000-$60,000 | $9,750 | 5-6x |
| national average | $66,000-$118,000 | varies | 10-20x |
| northern virginia | $500,000-1,000,000+ | $6,170 | 80-160x |
| phoenix metro | $200,000-400,000 | $8,150 | 25-50x |
land assembly economics
greenfield advantage
- 500-acre campus: 2-3 farm family negotiations
- clear title, no encumbrances
- straightforward surveying and closing
- timeline: 3-6 months
urban brownfield challenge
- 500 acres in urban area: potentially hundreds of parcels
- multiple owners, competing interests
- title complexity, liens, environmental history
- timeline: 12-36 months for assembly alone
the “rounding error” calculation
for a 100mw data center with $1.15b total development cost:
- farmland (500 acres @ $10k/acre): $5m (0.4% of project)
- industrial land (500 acres @ $200k/acre): $100m (8.7% of project)
- difference: $95m
this $95m land cost difference is a “rounding error” compared to:
- 2-3 year timeline difference (lost revenue: $200-400m)
- remediation risk ($12-30m+)
- interconnection delays (financing cost: $50-100m)
data sources
- usda nass land values 2025 summary
- u.s. census bureau acs 2024 (median home values)
- costar commercial repeat sale index
- county assessor records