In the world of data center investment, power and land usually steal the spotlight. But there’s another asset—less visible, but just as critical—that can quietly make or break your property’s value: fiber access.
Whether you’re evaluating land for development or assessing the resale value of a stabilized facility, connectivity is now a key driver of tenant demand, rental rates, and long-term ROI. Here’s why fiber should be front and center in your investment strategy.
Fiber is the Gateway to Tenant Utility
Data centers are only as valuable as the workloads they can support—and workloads depend on bandwidth. AI models, cloud applications, gaming, fintech, and streaming services all require fast, low-latency, redundant fiber networks to operate.
Tenants aren’t just asking if fiber is available—they’re asking:
- How many carriers?
- Is dark fiber accessible?
- Is there diverse route availability?
- How close is the nearest interconnection hub?
If you can’t answer these confidently, you’re competing at a disadvantage.
Connectivity Influences Rental Rates and Tenant Mix
Data center operators and hyperscalers assign real monetary value to fiber access. Properties with rich, carrier-neutral connectivity often command:
- Higher lease rates per kW
- Longer lease terms
- Stronger tenant covenants (creditworthiness)
On the flip side, fiber-poor locations may only attract niche or cost-sensitive tenants—or none at all. In a sector driven by reliability and uptime, limited or single-path fiber access can be a deal-breaker.
Fiber Access Impacts Appraisal and Cap Rate Compression
For stabilized assets, fiber infrastructure plays into appraisal value and exit cap rates. Sophisticated buyers now factor in fiber metrics when evaluating:
- Facility redundancy and resiliency
- Competitive positioning in the region
- Expansion capacity for AI or edge workloads
A facility with diverse, high-capacity fiber is viewed as lower risk—and lower risk leads to better cap rates and higher resale value.
The Hidden Cost of “Last Mile” Problems
If your property isn’t fiber-ready, retrofitting can be expensive and time-consuming:
- Construction costs (trenching, permits, etc.)
- Carrier negotiations
- Delays in go-live timelines
These factors can erode margins, delay revenue, or require incentives to lure tenants. Worse, they can be avoided entirely by conducting a fiber assessment early in the development cycle.
Emerging Regions Are Winning with Fiber-Forward Planning
Markets like Columbus (OH), Salt Lake City (UT), and Des Moines (IA) are gaining traction not just because of power and land—but because they’ve invested in fiber networks to attract data center development.
If your land is in a secondary or edge market, proactive fiber investment could be the differentiator that boosts property value and makes your asset irresistible to top-tier operators.
The Investor’s Checklist for Maximizing Fiber-Driven Value
Before acquiring, developing, or repositioning a data center property, ask:
- Does the site have multiple fiber providers?
- Is dark fiber available?
- How close is the nearest carrier hotel or internet exchange?
- Is route diversity possible?
- Have we performed a professional fiber assessment?
If the answer to any of these is “I’m not sure,” your next step is clear.
Conclusion: Fiber = Function = Value
Data centers are built to move data. Without robust fiber connectivity, they can’t fulfill their core function—and the market knows it. For commercial real estate investors, fiber isn’t just a technical detail—it’s a value multiplier.
The right fiber access can mean higher rents, better tenants, and stronger resale potential. The wrong fiber plan can cost millions.
Want to understand your property’s fiber potential?
Edgeology provides fiber availability assessments and connectivity planning designed for real estate investors and developers. Start your next project with a clear path to value.
