Farmland Data Centers

Kevin discusses the emerging trend of converting agricultural land in the Midwest into data centers, comparing it to how Cushing, Oklahoma became a major oil storage hub. The idea leverages the central location and available land in the Midwest to create data storage infrastructure.

Key Points:

• Strategic Location:

  • Central US location makes Midwest ideal for data storage
  • Similar model to Cushing, Oklahoma's role in oil storage
  • Companies actively seeking Midwest locations for massive data centers

• Land Conversion:

  • Agricultural land being purchased for data center development
  • Seeing increased bidding from tech companies for farmland
  • Part of larger trend of new utilities and uses for traditional farmland

• Market Drivers:

  • Data becoming "the new oil" - needs central storage location
  • Companies want to store data within US borders
  • Growing demand for data center infrastructure

• Land Competition:

  • Multiple bidders for farmland:
    • Traditional farmers wanting to expand
    • Data center developers
    • Pension funds and institutional investors
  • Creating new value opportunities for agricultural land

This represents a significant shift in land use patterns in the Midwest, with technology infrastructure competing with traditional agricultural uses.