Summary:
- Venture capitalist Chamath Palihapitiya is investing in a large Arizona land deal for potential data center development.
- The 2,100-acre site west of Phoenix could be worth $25 billion once developed for data centers.
- The goal is to secure a deal with the local utility and resell the land for data center construction.
Article:
Chamath Palihapitiya Makes Strategic Investment in Arizona Land Deal for Data Centers
Venture capitalist Chamath Palihapitiya has recently made a significant investment in an Arizona land deal, highlighting the potential for data center development in the area. Teaming up with Anita Verma-Lallian, CEO of Arizona Land Consulting, and other investors, Palihapitiya has acquired a sprawling 2,100-acre site known as Hassayampa Ranch, located to the west of Phoenix.
The land, which was purchased for $51 million, has the potential to become a lucrative venture, with projections suggesting a value of $25 billion once it is fully developed for data center purposes. Verma-Lallian, who is overseeing the project, is currently selling stakes in the endeavor, aiming to capitalize on the soaring demand for data centers driven by advancements in artificial intelligence and cloud storage.
To move the project forward, the next step involves securing an agreement with the local utility, Arizona Public Service, to ensure access to the necessary power infrastructure. The ultimate plan for Hassayampa Ranch is to sell the entitled and power-accessible land to a data-center builder or technology company, with the goal of generating a high return on investment.
Palihapitiya, emphasizing the importance of investing in AI infrastructure for economic growth and national security, expressed his enthusiasm for the partnership with Verma-Lallian and the potential for future collaborations. While the exact size of Palihapitiya’s stake remains undisclosed, qualified investors have the opportunity to participate in the project by purchasing stakes for a minimum of $250,000.
As a former Facebook executive, Palihapitiya brings a wealth of experience and expertise to the table through his venture-capital firm, Social Capital. With the demand for data centers continuing to rise, driven by the need for robust computing power by tech giants like Amazon and Microsoft, the Arizona land deal represents a promising opportunity for growth and innovation in the industry.
