Hyperscalers Move In: Big Players, Big Energy, Big Deals
- Octavian Vasilovici
- Sep 9
- 4 min read
The headlines about Amazon, Google, and Microsoft striking massive power deals might feel distant from the day-to-day concerns of most building owners. But these developments are more than Silicon Valley posturing. They point to a structural shift: in the age of AI, real estate value is no longer tied only to land and buildings. It is tied to energy.
That is why Canada’s federal government is considering a $15 billion incentive to steer pension funds toward green, AI-ready data centres. And it is why hyperscalers are no longer satisfied with annual renewable claims—they are locking in power 24 hours a day, seven days a week, through long-term contracts and direct partnerships with utilities and energy developers.
For anyone responsible for owning, managing, or financing buildings, this matters. The ability to package real estate with reliable, low-carbon energy access is fast becoming the marker of whether an asset can compete in tomorrow’s market.
Hyperscalers Are Redefining Energy Strategy
The largest tech players are no longer treating sustainability as a marketing exercise. They are redesigning their energy strategies around reliability, carbon reduction, and grid integration.
Google’s $3 billion agreement with Brookfield Hydro, securing 670 MW of firm clean power for two decades with options up to 3 GW, is now the largest corporate hydroelectric deal ever signed. Equinix is exploring advanced nuclear technologies and pre-ordering microreactors, a sign that the search for resilient power sources is pushing well beyond wind and solar. And across the board, “24/7 clean PPAs”—contracts that match demand with renewable generation every hour of the day—are emerging as the gold standard.
This is more than corporate responsibility. It is risk management at global scale, ensuring that AI-driven facilities never lose power and that growth does not come at the cost of sustainability targets.
Canada’s $15 Billion Bet on Green AI
In Ottawa, policymakers are considering a C$15 billion incentive designed to mobilize pension fund capital into green, AI-focused data centres. The intent is clear: build the infrastructure backbone of the digital economy while aligning with Canada’s climate goals.
If enacted, this measure would tilt the playing field. Hyperscalers looking to expand would see Canada not only as a place with land but as a jurisdiction where stable, low-carbon power is bankable. The strategy signals that governments recognize data centres as energy infrastructure first and real estate second—a perspective building owners should take seriously.
When Power Becomes the Gatekeeper
Owning land is no longer enough. In today’s market, the ability to secure and deliver reliable energy determines whether a site has value.
The problem is that power timelines do not always align with construction timelines. Data centres can be built in two years, while interconnection agreements often take longer. That is why tech firms are negotiating power purchase agreements years in advance, and why utilities are increasingly selective, prioritizing well-capitalized projects that arrive with credible energy plans in place.
For owners and developers, this creates a new requirement: land must be paired with a power strategy. Without one, the door to hyperscaler tenancy and institutional backing remains closed.
Private Capital Steps In
The scale of investment required is staggering. Global spending on data-centre infrastructure is forecast to reach $3 trillion by 2029. Even the largest tech companies cannot fund this alone. Private equity and infrastructure investors—Apollo, KKR, Blackstone, Carlyle—are now deeply embedded in the sector, backing both facilities and the power plants that keep them running.
In some cases, energy firms are securing contracts with hyperscalers by offering gas-fired “firm power” when renewables fall short. In others, investors are financing renewable portfolios that guarantee steady output. Either way, data centres have become financial vehicles for long-term energy contracts, blurring the line between property and power plant.
The Takeaway for Owners and Investors
For building owners and institutional investors, two lessons stand out. First, value comes from packaging land with energy. Without access to firm, low-carbon power, assets will struggle to attract next-generation tenants. Second, success in this market is not a solo act. It requires partnerships with utilities, investors, and technology firms who share the capital load and operational expertise.
Canada’s proposed $15 billion incentive may help attract those partnerships, but the winners will be the ones who master the details—structuring long-term PPAs, aligning interconnection schedules, and proving that their sites are more than empty land.
The AI era is not just about bigger buildings or faster networks. It is about energy strategy at unprecedented scale. Hyperscalers understand this, which is why they are rewriting the rulebook for how real estate and power interact. For building owners, the message is clear: think of your assets not just as properties, but as infrastructure nodes. Pair them with energy, and you create opportunity. Leave them as bare land, and you risk being left behind.
At OptiBuild, we help owners and investors navigate this new landscape, where the lines between energy and real estate are converging. Our Smart Building Owner’s Roadmap is designed to help you evaluate your portfolio and identify opportunities to align property with power.
