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00:00:24.640Good afternoon and welcome back.
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00:00:25.679This is U.S.
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00:00:26.480Home Talk.
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00:00:28.800We are your go-to real estate podcast.
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00:00:35.119Whether you're buying, selling, investing, or simply wanting to learn more about real estate, we got your back.
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00:00:47.840We're your hosts, Marcus Walgrave with the South Dakota Home Team, powered by Haig Realtors, Jason Walgrave with the Walgrave Real Estate Group at Remax Advantage Plus, and Mike Overson with Illuminate Bank.
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00:00:54.159In studio with us as well, always is our amazing producer and insurance guru, Evan Little.
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00:00:56.399Anything and everything real estate.
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00:01:12.480Good afternoon, gentlemen.
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00:01:13.280How are we doing today?
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00:01:14.319Great to be here.
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00:01:15.040Doing good.
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00:01:16.879Did I guys did I did I psych you out?
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00:01:17.840Do you think I left the show?
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00:01:18.959I got scared.
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00:01:20.159And then bam.
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00:01:22.560I didn't didn't know what to do.
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00:01:24.239I didn't know what to do.
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00:01:26.879I love it.
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00:01:27.359All right.
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00:01:32.560Well, this is US Home Talk, and we talk anything and everything real estate.
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00:01:34.079Uh, it's our podcast.
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00:01:47.760Uh you can find us on there as well.
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00:01:51.760Uh, we are going to be talking about data centers.
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00:01:54.159Now, this is a hot topic.
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00:01:56.480Um, it doesn't really matter where you look.
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00:02:09.039Uh you're or or you know, if you turn something on the TV, you open up a magazine or a newspaper, um, wherever you're out and about, you're gonna hear somebody talking about data centers.
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00:02:17.919So, today's show we are going to be talking about you know the effects of data centers in real estate.
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00:02:29.199Um first of a kind, we have a report that was published by the National Association of Realtors.
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00:02:34.879It is the two uh the uh 2026 data center impact.
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00:02:38.159Um, and so we're gonna kind of cover that.
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00:02:49.360Um, one of the great uh sources as a real estate agent who is a member of NAR is that we get access to this information.
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00:02:57.599Um and and and it's a free report to members like uh Jason and I uh who are uh NAR members.
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00:03:02.080Um if you're not you know it it costs you$400 to purchase.
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00:03:04.560Uh it's a 55-page report.
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00:03:09.599Um I did read it, uh, I didn't download it and put it through Chat GPT.
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00:03:11.759Um, so I I did read it.
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00:03:18.560And and so I'm gonna kind of cover some of the things that that I I think are you know worth talking about here today.
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00:03:40.080Um have the conversation with Jason, uh, who is a real estate broker up in the Twin Cities area, uh, and also Mike, who is a uh mortgage broker up in the Twin Cities area, and see you know what you guys have been hearing, um whether it's fellow uh colleagues uh in the real estate industry or maybe even clients as well.
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00:03:50.400So um one uh nice little uh visual that that I would shared with you guys earlier this week was just kind of a breakdown of the report.
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00:04:02.240Um, and so I'm gonna kind of you know touch on some of that information, but really what this report found out, and this is the again uh kind of a first of its kind.
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00:04:07.599Everybody's been talking about data centers and the effect that they have in real estate, right?
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00:04:17.360Um it seems like if you are in favor of data centers, it seems like what you're sharing is a lot more attractive, uh information and and and data.
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00:04:21.040And then if you don't like data centers, um it's quite the opposite.
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00:04:23.040It's it's very you know, gloom and doom.
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00:04:27.759So um the the the report that NER put through, it's kind of a two-part.
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00:04:37.839You know, first was doing research uh and and finding out you know where these data centers are being built throughout the nation.
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00:04:59.920I want to say, if I remember right, uh the data center, this report covered more than 3,200 US counties and compared the housing market, employment, household characteristics, electricity costs based on the concentration of data centers in each county.
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00:05:05.519So that's pretty comprehensive if we're talking over 3,200 U.S.
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00:05:06.319counties.
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00:05:19.279Um, and then the other part of the report was to try to get more of a perspective, uh, and that's interviewing realtors who are actively doing real estate business and saying, hey, what are you hearing?
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00:05:20.639What are you hearing from your colleagues?
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00:05:22.399What are you hearing from your clients?
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00:05:28.720Um, what are you seeing in terms of like uh uh pricing and and and cost of living, utility costs?
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00:05:33.759So it it's a super, super uh uh interesting report.
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00:05:35.680Like I said, it's kind of first of its kind.
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00:05:38.399Nobody has really came out with a report like this.
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00:05:44.879So NAR you know has an incredible amount of resources, um, almost 1.5 million members.
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00:05:57.519And when you have you know the nation's largest labor uh association, you're gonna be able to get data and reports out a lot faster than other, you know, other pro uh people can, other other entities can.
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00:06:03.360So um you guys is is data centers a hot topic up in the Twin Cities?
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00:06:05.360Not really.
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00:06:07.680I mean not not in the cities.
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00:06:13.360Um I think the the reason for that is they're just there's there's no space for them.
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00:06:17.360And and so you gotta go outside the metro.
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00:06:27.279I can tell you that driving around Greater Minnesota, whether it's north or I mean really, you know, all of those greater Minnesota areas that are that are not within the metro.
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00:06:29.920I I see I've seen plenty of signs this year.
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00:06:39.360Uh you know, the the no data signs or no data center signs and and so um but it really not much discussion within the metro.
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00:06:43.600You as well, Mike.
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00:06:46.560Pretty pretty quiet from from clients that you're working with.
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00:06:52.959Nobody's you know, kind of venting about their their thoughts or opinions on it or or supporting it.
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00:06:56.959I've pretty much heard zero, to be honest with you, about data centers up here.
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00:07:08.319There just hasn't been much talking, even like like I said, talking to real estate aid, other real estate agents, just you know, being in the the whole sphere, the real estate sphere, real estate agents, insurance agents, title companies, this and that.
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00:07:14.240I mean, I just don't hear a whole lot of people talking anything about data centers, to be honest with you.
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00:07:15.839And that makes sense.
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00:07:26.639Uh, you know, when when I went over this report and and looked at it, um it covered the top ten states uh that have data centers.
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00:07:33.279Number one is Virginia, and and they have the largest percent by a significant amount.
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00:07:36.079They're at almost 20% of all U.S.
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00:07:39.519data centers are in the state of Virginia.
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00:07:41.519So I thought that was pretty interested.
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00:07:42.959Uh interesting, excuse me.
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00:07:45.199Um, second place was Texas.
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00:07:48.319Um, they got 8.6% of the data centers.
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00:07:52.240California, 7.6, Oregon 7.4.
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00:07:56.800Um, and then if we kind of go a little bit further down, Iowa made the list.
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00:07:58.319You know, they're at 4.3.
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00:08:01.519They got 63 uh reported data centers.
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00:08:03.519Illinois also on the list.
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00:08:10.079They're at 50, you know, which makes up 3.4% of the uh data centers that are that are mapped.
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00:08:19.839Um Minnesota not making the list, it makes sense that you guys aren't really having clients or or uh colleagues, you know, um you know having the conversation about them.
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00:08:21.680So what's the draw to Virginia?
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00:08:25.040Why why is there 20% of them are in that state?
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00:08:41.360You know, this report doesn't this report doesn't really dive into it, but if you were to look at Google Maps, and if we're talking Virginia, we could be very uh specific to a county that's Loudoun County in Virginia.
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00:08:50.480Uh and if you look where Loudoun County is in Virginia, it's just west of something that we uh uh know of, and that's Washington, DC.
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00:08:52.320Literally just west of it.
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00:08:56.720So Evan made the comment about government, um, and that's a fair assumption.
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00:09:21.759You know, I I think you when you look at uh data centers and who is really using um or and and wants the expansion of data centers, well, our government definitely finds data to be quite valuable, uh, so it shouldn't be too big of a surprise that um there are 213 data centers in that one county in Virginia, which is just west of Washington, D.C.
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00:09:22.320That's it.
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00:09:23.759So I I Googled it here.
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00:09:27.679Why you know why does Virginia have a high concentration of data centers?
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00:09:30.879Um it's because is it data or data?
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00:09:31.919Yes.
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00:09:33.440Data centers.
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00:09:34.720I say data.
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00:09:36.240Data, okay.
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00:09:36.960Sorry.
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00:09:37.600Yep.
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00:09:40.799Uh duck duck deuce or duck duck gray duck, right?
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00:09:42.080Back to that.
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00:09:54.240Um because uh so it's especially it's it's especially in northern Virginia's Loudoun County because of a unique mix of historical, governmental, and infrastructural advantages that compounded over decades, and they go a little bit further.
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00:09:56.000Proximity to Washington, D.C.
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00:10:10.480and federal government historical internet roots, early defense and telecommunications experiments in the 1960s, followed by pioneers like AOL building and early commercial internet uh technology and stuff, came out of that region.
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00:10:12.399Wow, I didn't know that.
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00:10:19.600So local government like federal governments right there, Washington, DC, and it sounds like there's just a bunch of ties to basically that, right?
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00:10:22.320The Washington DC and the early internet stuff.
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00:10:49.759And and that that's where this report is super interesting because if you look and you read this report, you know, and and go through all the information, all the the the points that they make, um, what they have found is that what is happening in the real estate market, you know, based on data centers, data centers, uh, um, is that it it is vastly different from one state to the next or one county to the next.
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00:11:01.120Um, you know, the kind of looking here, the the the report breaks it down and says, why does Virginia have 319 facilities, you know, 21.6 of the national total.
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00:11:13.039Um, well, when you look at um uh uh Virginia, like you said, one of the the big reasons is is because of the fiber optic internet capabilities that that area has.
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00:11:15.600Um and then and then you know also the government.
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00:11:19.759Um and and so you know, and then we look over at Texas.
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00:11:32.080Okay, well, Texas is quite a bit different um when you compare what's going on with data centers in Texas and and in um uh Virginia, uh, not as as clustered in Texas.
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00:11:37.440You know, you you have a lot more land, so you can kind of you know pick different places and put it.
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00:11:45.679Um, you know, the the data centers aren't really affecting the housing as much in Texas as they would over in Virginia.
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00:12:01.279Uh and so you know when we kind of dive into this and um look at the information, you you kind of really need to be specific to where these data centers are being put up and and how they're affecting uh the market um in there.
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00:12:16.559Something else that's also kind of interesting is that you know, like I said, when we were talking about um the data behind these data centers, and uh, you know, some people are like, hey, it's driving out driving up the housing market.
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00:12:33.840Um one of the the the points that this market or that this report found was that you know yes, homes are um um the median sale price of homes in these areas where these data centers are being built are higher than when they're where they're not being built.
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00:12:39.360Um but it it's maybe not necessarily a a uh uh correlation.
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00:12:46.480Uh uh yes, it's correlated to the data centers, but it may not be a causation, is is was how they were explaining it.
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00:13:07.759And and the the point that they were trying to make is that these counties, if you look at their demographical makeup, prior to 10 years ago, where these data centers really started to get built, you know, they had higher education per household, they had higher income per household, they were already kind of like a techie hub area, anyways.
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00:13:18.960So that is what you know, some people are like, well, if you look at that one county, those homes are being sold, you know, 50% more than what they were uh in a different county that doesn't have data centers.
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00:13:27.440It's like, well, yes, but that was kind of the case prior to the development of the data centers um uh uh in in that county.
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00:13:30.480So that's kind of an interesting piece too, as well.
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00:13:33.679Um and and or if you look at like go ahead, Jason.
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00:13:36.240It's kind of like but you gotta look at it too.
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00:13:44.720Let let's say let's say a business came into the area, you know, and they're you know, maybe it's an Amazon fulfillment center or or whatever, right?
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00:13:50.480And and that that company or that business brings in, you know, a couple hundred jobs.
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00:14:04.480Or, you know, or I mean if you're if you're if you have a business regardless of what it is that's bringing jobs to an area, obviously that's going to increase uh home values because the demand for homes will be greater because you have more people moving in.
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00:14:13.039You know, so so maybe maybe it's not uh specifically because it's data, but more so that it is a business that's bringing in jobs.
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00:14:22.960Yeah, and that's always kind of the argument with with the data centers is that you know they are very uh expensive structures to build.
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00:14:37.919Um and and and depending on on how the city you know uh uh strikes their deal with the companies that want to build it, um, once the construction is done, it does not hold on to a lot of employment.
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00:14:41.039You know, it it takes hundreds of people to build them.
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00:14:50.080Yeah, they'll bring in a gigantic construction company, but then once it's built, uh a lot of these places have maybe two or three full-time staff.
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00:14:50.720Really?
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00:14:55.519Because all the that's you are no, I mean like of the data center itself.
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00:15:06.159There there'll be support staff, things like security and so on, but uh the the ongoing employment of uh a data center is actually relatively low.
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00:15:17.120Um I I I'm looking through this, Marcus, and I think it's really interesting that um Santa Clara County comes up a lot when they're talking about like the high density areas.
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00:15:27.600I think that the the conversations that people are having about this are around very rural data centers in communities that don't have an existing one at all.
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00:15:39.600And there's a lot of really interesting case studies in this, but they they are mostly of places, even their rural example, which I'm looking at, um, is in an area that already had 39 data centers.
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00:15:59.759Uh and so it's it's a it's a a really tough thing to study in the sense of finding the example of a place that had no data center, and then a data center was built, and now let's look at the impact of that versus you know, like in Santa Clara County, these are not sprawling outdoor facilities.
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00:16:12.240They're probably within like there are data centers here in Minneapolis that no one knows about because they're essentially just taking up a couple of floors of office space rather than a you know a big outdoor build-out.
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00:16:16.480So it's it's it's tough to actually nail down this stuff.
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00:16:18.159Exactly.
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00:16:23.360And and that that's kind of the the point of the report is that you know this is this is a new topic.
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00:16:37.279This is a kind of a uh a new uh uh boom that's happening with these these buildings of the and and as time goes by, as NAR said, they're gonna re uh uh update this report probably every six months.
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00:16:40.399And then in six months it's gonna kind of come off as a little bit different.
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00:16:50.159But to your point, Jason, um, when you're talking about when we do build these facilities, yes, the data center itself isn't gonna hold on to long-term employment.
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00:16:56.879However, the companies that need to use data centers, uh, they are gonna start building around there.
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00:17:15.039So when you look at like the real estate residential side, um, you know, with the exception of it being in your backyard, there really isn't any concrete information saying yes, this is helping the residential improving the the values or is decreasing the values.
00:17:15.279 -->
00:17:21.519Um, I don't think anybody's gonna argue that if one got built in your backyard, it's gonna decrease the value of your home.
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00:17:29.519Nobody's gonna want to look at that big old you know, honk and building that that uh depending on on how it was built and the equipment that was installed.
00:17:29.599 -->
00:17:46.240Um but on the other side, on the commercial side, you know, if you're a company that needs access to data centers and you know that there's land available to be purchased around one that is just being built, you're going to buy land and you're gonna start building businesses there.
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00:18:02.480So that is where on like the commercial side, it seems to be a little bit clearer that in on the commercial real estate real estate, that when a data center gets built, the land prices go up and the value of the commercial real estate goes up as well because companies want to take advantage of that.
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00:18:10.880These data centers, you know, prior to AI, uh really the the demand for them was for cloud, cloud services.
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00:18:21.440Uh I mean, I think you know when you look at Microsoft, Amazon, uh Meta, you know, that was you know, they're offering cloud service services to all sorts of companies.
00:18:21.599 -->
00:18:26.240You know, that's one of their high revenue generating uh uh parts of their business.
00:18:26.319 -->
00:18:30.000Uh but now it it it's it's cloud and AI.
00:18:30.160 -->
00:18:34.160And really everybody wants to dip their toes in AI and have that be a part of it.
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00:18:37.839Um, you know, so that's kind of the other driving part as well.
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00:18:56.079Uh one interesting thing is, and I'm I'm sure you guys have heard anybody who's talked about uh data centers and they don't uh data centers, data centers, and they don't want them is they talk about the cost, the utility costs, how it's driving up um uh uh um like electricity costs.
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00:19:18.880I think that that that's something that we've always heard, and and what I thought was interesting was uh you know, looking through the the this report, and you know what they showed was like, okay, here are the the cost of electricity in a county that has what is considered to be high density, you know, 20 or or 10 or more data centers within that county.
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00:19:26.000Um and and the percent that the electricity has gone up as in the last 10 years is 22 percent.
00:19:27.119 -->
00:19:32.799That's how much the cost of electricity has gone up in a county that has 10 plus more data centers.
00:19:33.039 -->
00:19:48.799However, when you compare it to a county that has zero data centers constructed in that county in the last 10 years, they have zero, electricity costs have gone up on average 15.7 percent.
00:19:49.519 -->
00:19:54.319So the cost of electricity has gone up with or without data centers being built in it.
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00:20:04.160Yes, they have gone up more in counties that have 10 plus, you know, to to a to the uh uh uh percent of of about seven percent more.
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00:20:06.480But and and I think that that's one of the deals, right?
00:20:06.559 -->
00:20:07.200We always hear that.
00:20:07.359 -->
00:20:19.200It's like you know, data centers have raised uh uh you know the the cost of electricity has gone up twenty two percent in our county since since the last ten years, and that's you know, has the causation is because of the data centers.
00:20:19.279 -->
00:20:25.039It's like well, you know, the cost of electricity has gone up regardless of where you live in the last 10 years.
00:20:25.519 -->
00:20:27.039I thought that was interesting too.
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00:20:28.880So that is interesting.
00:20:29.039 -->
00:20:34.400I feel like my my energy costs go up two or three percent a year, regardless.
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00:20:38.960You know, and so you know, 22% over ten years doesn't seem like a big number to me.
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00:21:12.079Um I there there was something that was recently passed uh and I I I'll pull it up for maybe the next show, but um that Congress passed specifically about data centers and them being responsible for all of their own energy, or or I'll have to look it up because it was an interesting bill that had passed, and um basically how I read it or how I remember it anyway, is that um those centers were not going to be able to you know get subsidized uh energy, um, which should help in the in the cost for the consumer for for power.
00:21:13.839 -->
00:21:15.039I actually just googled here.
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00:21:18.000I said, why does Virginia have a high concentration of data centers?
00:21:18.319 -->
00:21:24.960And one of the things that pulled up was um there's like I just went to images so I could see like what the these data centers look like and stuff like that.
00:21:25.279 -->
00:21:33.680One of the the headlines says Virginia County with 37 data centers asked teachers to turn off classroom lights due to surging electricity cost.
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00:21:36.079Yeah.
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00:21:47.039I I was gonna I just gonna point out when when we're talking about these differences in in increases, so your your two numbers markets were fifteen percent and twenty two percent, correct?
00:21:47.759 -->
00:21:55.519Roughly if we're gonna rock uh yeah, sixteen percent counties without data centers to counties with ten or more is twenty one percent.
00:21:55.680 -->
00:21:56.240Ten or more.
00:21:56.480 -->
00:21:58.640So it's the two the two sides of it.
00:21:59.039 -->
00:22:06.240The other way we could Put this is in areas with 10 or more data centers, energy costs rose 30% faster.
00:22:07.200 -->
00:22:15.759Because if we're going from 16 to 22%, that is like that is a 30% increase in the speed at which your rates increase.
00:22:15.920 -->
00:22:19.200Because I agree with Jason that nothing ever gets cheaper.
00:22:19.359 -->
00:22:25.119I mean, that's got to be the most common email that I'm sending out people is why are my rates going up?
00:22:25.279 -->
00:22:26.880You know, when it comes to insurance.
00:22:27.039 -->
00:22:29.279And the answer is because things just never get cheaper.
00:22:29.359 -->
00:22:30.880They're always getting more expensive.
00:22:31.119 -->
00:22:39.359The question is, did they get 2% more expensive this year, or did they get 3% more expensive this year, or 5%, or 10%?
00:22:40.079 -->
00:22:47.519So 15%, sorry, 16% versus 22% over a period of time.
00:22:48.640 -->
00:22:52.799Essentially, we are talking about they're going up a third faster in those areas.
00:22:52.960 -->
00:22:53.680That's a lot.
00:22:54.240 -->
00:23:03.039You know, Evan, I love that example because anytime a client asks me to reduce my compensation from 3% to 2%, they're like, that's just 1% less.
00:23:03.279 -->
00:23:03.440Right.
00:23:03.839 -->
00:23:07.599But actually, we're talking about 33 and a third percent less income for me.
00:23:07.680 -->
00:23:10.480So great example there, uh, Evan.
00:23:10.640 -->
00:23:20.319And um, you know, when we kind of look at like the top concern, top client concerns from this report, they're saying 60%, 61% their concern is uh energy costs.
00:23:20.559 -->
00:23:26.240The other one is uh 50%, 56% of their concern is based on water use.
00:23:26.799 -->
00:23:31.680And lastly, it's you know the 43% uh is environmental contamination.
00:23:31.839 -->
00:23:36.720So those were kind of what the clients have been telling realtors saying, hey, these are our concerns.
00:23:36.880 -->
00:23:46.640Um and and but it pretty much unanimously you unanimously came back and said, you know, almost everybody said that they just didn't want it in their backyard.
00:23:46.880 -->
00:23:55.200You know, it didn't matter whether you're for it or against it, you know, just as long as it's not in my backyard, you know, that seemed to be uh uh across the board.
00:23:55.359 -->
00:23:58.160Everybody had that had that thought and opinion on it.
00:23:58.400 -->
00:24:04.000So um this this report is gonna get updated every uh uh six months.
00:24:04.160 -->
00:24:08.720So it'll be interesting to see kind of what NER comes back, you know, and and says about that.
00:24:08.880 -->
00:24:18.079So um before we finish up with today's show talking about data centers and the impact report that NER put out, let's go ahead and jump into our legal minute of the day.
00:24:18.319 -->
00:24:21.119This is Jeff O'Brien, attorney with Hush Blackwell with the U.S.
00:24:21.200 -->
00:24:22.240Home Talk legal minute.
00:24:22.400 -->
00:24:28.160The statute of frauds requires a written agreement signed by the parties which states the purchase price and properly describes the property.
00:24:28.240 -->
00:24:42.079However, even if there is no written agreement, but the parties have partially performed the terms of the agreement, such as payment of the purchase price and possession by the purchaser, or if either party acts to their detriment in reliance on the agreement, it may then be enforceable even if it does not satisfy the statute of frauds.
00:24:42.160 -->
00:24:51.599In addition to the partial performance doctrine, it is possible that an agreement to sell property may be enforceable even if it does not comply with the statute of frauds as a result of the doctrine of equitable estoppel.
00:24:51.759 -->
00:24:58.160There is no case in Minnesota applying the doctrine to a real estate purchase agreement, however, it is possible that it may be applied in an appropriate case.
00:24:58.319 -->
00:25:01.200This is Jeff O'Brien, attorney with Hush Blackwell with a U.S.
00:25:01.279 -->
00:25:02.319Home Talk Legal Med.
00:25:04.480 -->
00:25:07.039Thank you, Jeff O'Brien, for your legal advice.
00:25:07.200 -->
00:25:09.119As always, super appreciative.
00:25:09.279 -->
00:25:19.279If you guys are looking to get a hold of us or any of our amazing uh sponsors of our show, um you check us out on our website ushome.ushometalk.com.
00:25:19.599 -->
00:25:28.000Um you can always give us a holler two on our uh hotline, and uh we can get a hold of you that way as well.
00:25:28.160 -->
00:25:33.440Uh today's show we're talking about data centers and how their impact on real estate.
00:25:33.599 -->
00:25:44.960Um the National Association of Realtors put out a great report, first of the kind, um, and and they pulled data from over 3,200 counties, see how that's affecting real estate.
00:25:45.119 -->
00:25:51.359Spoke with the real estate professionals that have boots on the ground and seeing what they're kind of talking about.
00:25:51.519 -->
00:25:58.720And um, you know, it really just seems like uh uh you know residential, we just don't really know yet.
00:25:58.799 -->
00:26:00.640It's just too early in the game.
00:26:00.880 -->
00:26:17.839Um, you know, where it would suggest that you know residential is increasing, where data centers probably isn't because of data centers, more makeup, uh it's more of the makeup of the demographical household, um, higher educations, um, higher paying jobs, higher income.
00:26:17.920 -->
00:26:25.119Uh, you you guys know that if if you have those, you know, housing is going to be higher regardless of what's going on.
00:26:25.359 -->
00:26:48.400And so, and then on the commercial side, uh, maybe a little bit clearer there, you know, when we do have data centers being built, um, there is a demand for commercial, you know, companies who are uh needing to expand their AI resources and tools, well, they're gonna want to be close to those facilities and and be able to take advantage of those data centers.
00:26:48.640 -->
00:27:03.440Um you know, when we Jason, you talked about dirt before break about maybe some uh uh legislative bills going into place, you know, laws being set forth about hey, how do we manage these data centers?
00:27:03.599 -->
00:27:14.799You know, kind of setting the the benchmark of what needs to happen for one to come in here and and here as in like your your city or your county or your state.
00:27:15.039 -->
00:27:17.759Um it's a hot topic in South Dakota.
00:27:17.920 -->
00:27:22.319Uh, you know, there were some you know bills that were on the table that were trying to address it.
00:27:22.640 -->
00:27:28.880Uh and and you know, Mark Cuban, he posted on X about two weeks ago.
00:27:29.279 -->
00:27:35.119It was like a seven, it was like a seven uh um um talking points.
00:27:35.359 -->
00:27:38.240And it was his his what he called as like a playbook.
00:27:38.640 -->
00:27:52.160Like he he pretty much said that, hey, if you're a city out there and a company is coming to you asking to build a data center in your county or in your city limits, here are the seven things that you need to understand.
00:27:52.400 -->
00:27:57.440And and and you know, one of it pretty much was just like, hey, they're gonna build them.
00:27:57.759 -->
00:28:08.720And if they're reaching out to you and they want to build them in your city or in your county, you hold all the cards and make sure that you're negotiating and demanding certain things.
00:28:08.799 -->
00:28:15.759Like Mike, you said you you can't pull from you can't pull power from our from our uh uh electrical grid.
00:28:16.079 -->
00:28:33.039You know, if you want to build your data center, you know, you're gonna have to you know build up the the the infrastructure so then you're not putting any pressure on the teachers telling them to turn the light switches off because you know the Pentagon needs to uh run a quick search on on the data.
00:28:34.880 -->
00:28:35.200Yeah.
00:28:35.440 -->
00:28:37.839I mean, how crazy is that that what that would happen?
00:28:38.000 -->
00:28:47.440And it looks like, I mean, are you seeing that these data centers are kind of almost self-sufficient with that, where they have their own power sources, they have their own water sources, things like that?
00:28:48.720 -->
00:29:04.960From what I've been reading and what I've been researching, it really comes down to the city and and and when they approve these building permits and approve the plans, and they do a good job and they do their due diligence and and they are like, hey, listen here, company.
00:29:05.359 -->
00:29:12.000We're we're we're interested in this, however, this is what you need to do for us to green light it.
00:29:13.759 -->
00:29:27.599If they just kind of get, you know, they get excited and they're like, holy buckets, it's a two billion dollar you know building that they're gonna build, and and and and the tax revenue that they're gonna collect on this real estate property moving forward is just so awesome.
00:29:27.759 -->
00:29:29.680You know, you guys just build whatever you want.
00:29:29.839 -->
00:29:34.319You know, it it really is is is uh uh uh two different two different stories.
00:29:34.480 -->
00:29:38.880I mean, you'll see uh data centers that get built and they're gorgeous.
00:29:39.039 -->
00:29:44.640I mean, they have landscaping all around, they brought in landscaping to block the whole building.
00:29:44.799 -->
00:29:51.200They have a super attractive, techie looking uh front, you know, uh um uh uh curb appeal.
00:29:51.440 -->
00:30:08.480You know, that was obviously a city who said, you can build it, but you better make it look nice, it better be quiet, you better get your own power, and it better be like a closed, you know, uh water source, so you're not always just draining our streams, you know, and if you do all that, we'll let you build it.
00:30:08.559 -->
00:30:11.839And if the other ones are just like, oh great, this is awesome, go ahead and build it.
00:30:12.000 -->
00:30:23.920Well, they're putting ones up and without any trees and you know, pulling, you know, taking the water sources and tying into the electric grid, and they're kind of getting, you know, in a sense, you know, beat up a little bit with with how that's going.
00:30:24.000 -->
00:30:25.519So it really depends.
00:30:25.599 -->
00:30:29.440It really depends on on um on each specific one.
00:30:29.680 -->
00:30:39.279You know, some are being built great and some maybe a little bit cheaper and more attractive for the company that's uh you know that that owns the data center.
00:30:40.400 -->
00:30:46.000So um this isn't gonna be uh a topic that that it's gonna be a one-and-done.
00:30:46.079 -->
00:30:48.000We're gonna be bringing this up, you know, again.
00:30:48.240 -->
00:30:51.359I'm sure we'll probably talk about it a couple times in 2027.
00:30:51.519 -->
00:30:59.599So uh, but as always, you know, as our show comes to an end, um, we we really appreciate you guys tuning in and listening to our show.
00:30:59.759 -->
00:31:01.839Um, you know, thank you to all the sponsors.
00:31:01.920 -->
00:31:06.960Uh if you guys want to try to get a hold of us, check out our website, it's ushometalk.com.
00:31:07.119 -->
00:31:10.400Uh, this is Marcus Walgrave, Jason Walgrave, Mike Overson.
00:31:10.559 -->
00:31:12.400Have yourself a blessed week.
