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Across North America, , and 83% of new capacity is already pre-leased, underscoring fierce demand. As a result, operators are targeting new markets and rethinking location strategies – driven primarily by access to reliable power. With AI-driven technology and cloud computing set to , data centers have become one of the most valuable real estate assets in the world.

At the same time, shifting workplace trends have left many commercial buildings vacant, presenting an opportunity to reimagine these spaces for the digital era.

Is your property a candidate for data center conversion? With the right infrastructure, adaptive reuse can turn underutilized buildings into high-performance data centers supporting AI and cloud computing.

Here’s a five-point checklist to determine feasibility and unlock the potential of adaptive reuse for data center conversion.

1. Confirm Power Availability

Power is the lifeblood of any data center. With the right power infrastructure, any building has the potential to become a mission-critical data center. Ensuring adequate megawatt capacity unlocks operational success and long-term scalability. However, many existing commercial buildings aren’t designed for the high electrical demands of today’s computing infrastructure, meaning a power availability assessment is critical.

Key considerations:

• Can the existing utility infrastructure support at least four megawatts in urban locations or 10-15 MW in larger facilities?
• Are backup generators, solar panels, or renewable energy sources viable options to ensure redundancy?
• Does the site allow for dual power feeds to safeguard continuous uptime?

Evaluating power availability early helps shape the overall feasibility and direction of potential conversion projects.

2. Unlock Funding and Incentives

Financing an adaptive reuse data center can be capital-intensive, but incentives like tax credits, Opportunity Zones, and public-private partnerships make conversions more viable. Some states now classify data centers as critical infrastructure, unlocking new funding streams for real estate conversions that drive economic growth and promote energy efficiency.

Potential funding sources:

• Tax credits: Incentives for energy-efficient infrastructure investments.
• Public-private partnerships: Government-owned properties may offer unique leasing or funding options.
• Opportunity zones: Tax advantages for developing data centers in designated areas.

Tapping into these financial tools early enhances ROI and long-term operational sustainability.

3. Assess Structural Capacity

Data centers require specialized structural integrity beyond typical office or warehouse spaces. Reinforcing your building’s infrastructure today ensures it thrives as a future-ready data center.

Key structural considerations:

• Load capacity: Can the existing structure support densely packed server racks?
• Ceiling height: 15 feet is ideal, with 12 feet as a minimum; water-cooled racks may allow for lower ceilings.
• Open floor plans: Column-free layouts improve equipment arrangement and airflow efficiency.

Legacy industrial buildings – like former coal facilities or manufacturing plants – are increasingly being repurposed for data center use thanks to their load capacity and existing energy infrastructure. A structural engineer’s assessment ensures the space can handle the operational intensity of a data center.

4. Plan for Cooling

AI workloads and high-density computing generate significant heat, requiring advanced cooling solutions beyond traditional HVAC systems.

Cooling strategies to consider:

• Liquid cooling: A high-efficiency method that reduces space demands and improves heat dissipation.
• Air-cooled systems: Require hot/cold aisle containment and optimized airflow.
• Waste heat reuse: Some facilities integrate (excess) heat exchange systems to power adjacent buildings, improving sustainability.

Investing in liquid cooling, free cooling, or waste heat reuse enhances sustainability while reducing power usage effectiveness (PUE) – a key metric for data center efficiency.

5. Ensure Compliance

Data center conversions demand precision. Unlike standard commercial renovations, these projects require strict compliance with electrical, mechanical, and fire protection codes while maintaining operational redundancy.

Key compliance factors:

• Fire suppression Systems: Gas-based suppression minimizes damage to sensitive electronics.
• Security & access control: Meeting Tier certification standards for uptime and resilience.
• Zoning & land use regulations: Compliance with local building codes and seismic requirements.

Engaging an experienced team of architects, engineers, and technology specialists ensures regulatory compliance and smooth project execution.

Future-Proofing Existing Spaces

The next generation of data centers will power the AI and digital infrastructure revolution – and adaptive reuse offers a compelling, sustainable approach to meeting this demand. By leveraging high-performance design, structural enhancements, and energy-efficient infrastructure, developers can transform vacant properties into that evolve with AI and cloud growth.

Interested in exploring a data center conversion for your building? Contact Haider Himairi to discuss feasibility and learn more.

Learn more about our approach to adaptive reuse.