The artificial intelligence (AI) boom is reshaping U.S. industrial real estate. Closed power plants and smelters are attracting attention as data center sites because their existing power infrastructure can be used. Investment is also flowing into outdoor storage yards for construction materials and equipment. Analysts say the expansion of AI infrastructure is prompting a reassessment of the value of previously overlooked industrial land.
Former industrial facilities with power infrastructure
According to the global real estate industry on November 2, existing industrial sites, including outdoor storage yards and former power plants, are attracting attention as new investment opportunities arising from AI infrastructure expansion. According to real estate consultancy CBRE, rents for industrial outdoor storage (IOS) facilities across the United States have risen 32% since 2021. According to real estate services firm Colliers' 2026 Data Center Market Report, data center sites with access to power and suitable development permitting conditions in some U.S. regions traded at prices 2 to 4 times those of ordinary industrial land.
Power plants and smelters that have ceased operating are prominent examples. Data center developer Allegheny DC Properties purchased a former coal-fired power plant site of approximately 190,000 square meters in November 2025 for $14.3 million, approximately 19.1 billion won. The site is the Cheswick power plant in Springdale, Pennsylvania, which closed in 2022. The developer plans to build a data center with up to 240 megawatts (MW) of information technology (IT) power capacity.
An aluminum smelter in Hawesville, Kentucky, which stopped production in 2022, is expected to become a data center for AI company Anthropic. AI data center developer TeraWulf acquired the site and infrastructure in February 2026 for $200 million in cash and a 6.8% stake in the development entity. The total acquisition cost, including the equity valuation and transaction expenses, was approximately $301.9 million. In July 2026, TeraWulf signed a 20-year lease with Anthropic for 401 MW of IT load.
Analysts say the existing power infrastructure at closed power plants and smelters has been reassessed as an advantage for data center development. Real estate data analytics firm Altus Group found that discussions with utilities about grid connections for data center development take 18 to 36 months, even in regions with relatively fewer power supply constraints. Power plants and smelters that have ceased operating previously produced or consumed large amounts of electricity, potentially giving them an advantage in accessing existing transmission networks and other power infrastructure.
Their appeal is greater given that grid permitting delays are disrupting data center construction in the United States. According to a report released by the U.S. Energy Systems Integration Group (ESIG) in July 2026, transmission planning, permitting and construction typically take 5 to 10 years. The U.S. Department of Energy has also stated that federal permitting for new transmission lines takes an average of approximately 4 years.
Outdoor storage yards emerge as an investment opportunity
Major investors are also moving into outdoor yards used to store construction equipment and materials. According to The Wall Street Journal (WSJ), global investment firm Brookfield acquired Peakstone Realty Trust, which invests in industrial outdoor storage properties and other assets, for approximately $1.2 billion in May 2026. As of April 2026, J.P. Morgan Asset Management and Zenith IOS had built a portfolio of approximately 100 outdoor storage yards across 33 U.S. markets.
In Chesterfield, Virginia, an outdoor storage yard supporting data center construction was sold to an institutional investor. Real estate developer Lingerfelt developed a yard of approximately 40,000 square meters in late 2025 for A&A Transfer, a company that transports and stores industrial equipment related to data centers. In May 2026, Lingerfelt sold the existing warehouse and outdoor storage yard to Manulife Investment Management.
However, industry assessments point to a severe shortage of outdoor storage yards. According to industry sources, obtaining approval to use new land for IOS is nearly impossible in most parts of the United States. Local governments and residents do not favor these facilities because they generate noise and are considered unattractive. CBRE also identified zoning restrictions as a key constraint on new supply.
There are also concerns that the availability of outdoor storage yards for data center construction could shrink further, as some yards are being converted into data center sites. According to the WSJ, approximately 810,000 square meters of outdoor storage space in Manassas, Virginia, is expected to become a data center site. That represents more than 20% of the area's outdoor storage space.
Original Korean article: Korea Economic Daily
English brief by Korea Wind Intelligence, koreawindintel.com
