Data Center Power Verification

Most powered-land offerings are marketed on a number nobody has documented. A site advertised at 100MW frequently has 20MW of confirmed capacity behind it. The gap is rarely dishonest; it usually comes from how power conversations happen. A landowner hears from a utility representative that a large load could be served. A broker hears the landowner's version. By the time the site reaches a buyer, an informal conversation has become a headline figure.

Other common sources of the gap: capacity that depends on transmission upgrades that are not yet funded or scheduled; a study that covers a first phase but is marketed as the full build-out; a queue position that has not yet passed through the studies that determine whether it survives; and capacity that exists at a substation but is already allocated to other customers.

None of these make a site worthless. They make its value different from its marketing. Our job is to find the real number before anyone commits capital or a customer to it.

Power evidence comes in several forms, each carrying a different level of certainty. Below is a plain-language summary of the most common documents we review. Exact names and processes vary by utility and by regional grid operator, so treat these as general descriptions rather than legal definitions.

Will-serve letter

A letter from a utility stating that it is willing and able to serve a specified load at a site, often with conditions. It is an important early signal, but its strength depends on the wording — the amount, the timing, the conditions and whether it commits the utility to anything specific.

Capacity or facilities study

An engineering study, usually paid for by the customer, in which the utility or transmission owner analyses what it would take to serve the load: which upgrades are needed, what they cost and how long they take. A completed study is far more informative than a letter.

Interconnection service agreement (ISA)

A contractual agreement governing how a facility connects to and takes service from the grid. Terminology differs across markets, but an executed agreement represents a much firmer commitment than a study or letter.

Large generator interconnection agreement (LGIA)

The agreement under which a large generating facility connects to the transmission system. It is relevant where a site pairs load with on-site or adjacent generation, or where the power position comes from an existing generation interconnection.

Interconnection queue position

A place in a grid operator's or utility's queue of projects requesting connection. A queue position shows that a request is in process; it does not by itself confirm that capacity will be available, on what timeline, or at what upgrade cost.

We hold one rule above all others: a megawatt is only real when a utility says so. In practice, that means every megawatt we underwrite is traced to a will-serve letter, capacity study, ISA or LGIA, and confirmed by a named source at the utility.

We also separate capacity into clear categories so that nobody — internally or externally — confuses one with another. Claimed capacity is what a seller or broker says is available. Documented capacity is what a utility document supports. Approved capacity has passed the utility's process. Energized capacity is live today. Expansion capacity is a credible future increment. Only the documented, approved and energized categories count as evidenced, and each of those must be backed by an actual document in our file.

Sponsor-reported figures are recorded, but they never promote a site's confidence level on their own. Only power documents do.

Verification is not paperwork for its own sake. It is what lets us commit to offtakers on schedule and lets capital partners underwrite with confidence. An end user signing up for capacity needs to know it will be there when their equipment arrives; that is the foundation of our offtake placement work. A capital partner needs to know the land basis is supported by a defensible power position; that is the foundation of our capital structuring.

Equally, verification protects sellers. A site with a clean, well-documented power position moves faster through review and is easier to price, because there is less uncertainty to discount.

For a document-by-document comparison, read Will-Serve Letter vs. Capacity Study: What Actually Proves a Data Center Site Has Power.

If you are bringing us a site, send whatever power evidence you have, even if it is incomplete. We would rather see a draft study or a conditional letter than a headline number. Tell us when power is energized or expected to energize and what gates that date. Our powered land acquisition page explains the rest of our screen, and our FAQ covers the questions we are asked most often.