Data center auction sites, What should you look for before bidding?
You cannot select a good site based solely on the number of failed bids and the appraised value. Before bidding, you must first verify whether the site is actually suitable for data center development by checking the power supply, road access, permits and licenses, property rights, and total development costs.
1 / 10 · AI-DC KOREA Webtoon Episode 5: Checklist Before Bidding on Data Center Auction Sites2 / 10 · It is important to verify additional development costs rather than focusing on a low winning bid price.3 / 10 · We review the possible scale of construction based on land use zones, building coverage ratio, and floor area ratio.4 / 10 · Check the width of the access road and the accessibility for large construction vehicles.5 / 10 · Check the available power capacity, actual feed-in routes, and supply schedules.6 / 10 · Check for flooding, slope, environmental regulations, and water supply conditions.7 / 10 · We analyze registered titles, actual possession, statutory easements, and liens.8 / 10 · Add electricity, road, licensing, and financing costs to the winning bid price.9 / 10 · We analyze the sites based on their addresses prior to the auction bidding.10 / 10 · A successful bid involves selecting a site suitable for the project.Key Points
We focus on the project’s feasibility and total development costs rather than the winning bid price.
Before bidding, you must verify the zoning designation, maximum allowable building size, access roads and accessibility for construction vehicles, as well as available power capacity, power supply routes, and the start date of power supply. Flooding, slope conditions, environmental regulations, and water supply conditions directly affect construction costs and operational stability.
Risks related to title, such as registration status, on-site occupancy, statutory easements, and liens, may persist even after the bid is awarded. The final assessment should be based on the total development cost, which includes the winning bid price plus costs for power, roads, civil engineering, permits, financing, and the project duration.