Infrastructure
The foundation of smart site selection
In real estate, a property with “good bones” is considered a smart investment. Today, those bones go beyond physical structure to include the infrastructure that enables a property to function, scale and thrive. Power, water, transportation and digital connectivity are not just operational necessities; they are strategic foundations that power performance. Together, these systems form the backbone of modern society, underpinning every aspect of daily life and economic activity. They serve as a steady presence shaping the evolution of cities , communities and the built environment.
Given this critical role, infrastructure must now be a foundational lens for evaluating potential sites—as it directly influences property values, business viability and long-term market stability. Whether planning a suburban manufacturing site or an urban headquarters, location decisions hinge not just on geography, but on the infrastructure’s ability to support sustained performance and growth.
Infrastructure as a business driver
Infrastructure determines a location’s accessibility, operational efficiency and overall feasibility. The most successful developments—whether industrial, commercial or mixed-use—are grounded in reliable systems that can scale with demand. When evaluating potential sites, investors and businesses must assess four key infrastructure pillars: power, water, transportation networks and digital connectivity.
When these pillars are well-maintained, they support growth, enhance accessibility, and ensure that real estate investments remain valuable and viable. If they fail, the consequences can be big. A power outage, a delayed rail line or a downed network can throw entire supply chains into disarray—shipments stall, costs rise and businesses struggle to meet demand. At the same time, increasing competition for infrastructure capacity—particularly from high-growth sectors such as data centers and advanced manufacturing—has made availability a top concern. In many markets, demand is outpacing supply, especially for development-ready sites with sufficient utilities and available power. The stakes are clear: Infrastructure is no longer just a backdrop—it is a fundamental business driver.
Power: Reliability drives business continuity
Modern commercial spaces increasingly demand high-capacity power infrastructure to support a high density of electronic devices, advanced technologies and automation systems. Data centers, for example, depend on redundant power sources to ensure continuous operation, while manufacturing plants require scalable power solutions to accommodate automation and high-intensity production demands. Large-scale projects such as battery cell plants can demand more than 200MW of power, a level that can challenge even the most robust power grids. Reliable energy infrastructure is non-negotiable: If the grid cannot handle your energy needs, the site simply is not viable.
As demand for power surges, many companies, particularly in energy-intensive industries, are exploring alternative strategies like on-site power generation or co-location with emerging energy infrastructure to ensure reliability. This is particularly significant as power constraints create energy bottlenecks in several markets. Data centers, fueled by AI and other data-intensive technologies, now require unprecedented power levels, with large deployments demanding upward of 400MW. Utility providers in many regions face multi-year delays in delivering sufficient power for new developments. A “Bring Your Own Power” approach is becoming more common, especially among large-scale data center operators and advanced manufacturing projects. To meet their massive energy needs, large data center operators are increasingly exploring on-site generation solutions through solar, small modular nuclear reactors (SMRs), hydrogen fuel cells, and natural gas. In addition, many are adopting 24/7 clean power purchase agreements (PPAs) to run their facilities continuously on clean, carbon-free energy.
As organizations strive to balance energy needs with their ambitious carbon reduction goals, access to 100% renewable electricity—whether through on-site or off-site sources—has become a critical decision factor. With the increasing frequency of extreme climate-related weather events, our existing power infrastructure is being tested. Beyond reliability, resilience—both at the asset and utility levels—is essential to maintaining business operations.
Water: Sustainability matters
Access to clean, reliable water is a fundamental factor for many site selection projects. A consistent water supply is essential for industries such as manufacturing, agriculture and technology, where water-intensive processes are common. Water infrastructure must support both supply and efficient wastewater management to meet environmental regulations and sustainability goals. As climate concerns grow, energy efficient systems, including smart water management are becoming essential to maintaining resilient operations.
In an era of increasing climate volatility, water resilience is also a matter of risk management. Rising global temperatures, drought conditions, and extreme weather events have already disrupted water availability in some regions—shifting the calculus for long-term investments. Today’s site selection strategies must account for water stress and climate exposure to safeguard future operations. Smart systems that monitor usage, recycle resources, and reduce waste are becoming standard for resilient portfolios. Sustainable water infrastructure not only supports businesses today but protects it against tomorrow’s disruptions.
Natural disasters—including tornadoes, hurricanes and earthquakes—pose significant risks that can disrupt critical processes or disable water infrastructure, including water supply systems or wastewater management facilities. Locations with lower exposure to these hazards are increasingly prioritized, as are locations with incentives like tax breaks for green building initiatives. Government policies—such as zoning laws, building codes and environmental regulations—have a direct impact on infrastructure, and in turn, play a critical role in site selection strategies.
Conducting thorough environmental risk evaluations is necessary to ensure uninterrupted operations . Cushman & Wakefield recently completed physical climate risk assessments for over 8,500 logistics and industrial sites across the United States, evaluating eight types of climate hazards. Our findings highlight the importance of understanding both current and future site-specific hazard exposure to enact effective mitigation solutions. For example, while temperatures are expected to increase across all locations, flood risk varies significantly even within the same market.
Transportation: Connectivity defines market reach
Access to robust transportation networks—roads, rail, air, and ports—directly affects a site’s market reach, efficiency, and cost profile. Proximity to key hubs reduces supply chain complexity, improves delivery timelines, and expands talent pools by easing employee commutes. For logistics and industrial users especially, an ideal facility in a poor location quickly becomes a liability if it adds friction to distribution. With transportation costs accounting for up to 70% of operating costs, companies cannot afford to make a mistake with this.
In today’s fast-paced economy, seamless multimodal connectivity has become a competitive advantage. Locations that integrate road, rail and port access into a single, streamlined logistics framework are emerging as preferred hubs for manufacturing and distribution. Proximity to major e-commerce markets and last-mile delivery networks also plays a pivotal role in site selection for retail and logistics firms.
Digital infrastructure: the backbone of modern business
In today’s economy, digital infrastructure is as essential as physical infrastructure. High-speed internet, fiberoptic networks, and resilient telecommunications systems support everything from day-to-day communications to data-intensive operations and cloud-based automation. Commercial properties increasingly depend on connectivity to enable smart building technologies, support remote and hybrid work models, and deliver seamless user experiences. Without strong digital infrastructure, even top-tier assets risk underperformance.
When selecting a site, fiber connectivity is a key focus. Developers—particularly data center operators—evaluate not only the number and density of fiber networks, but also their connection quality and resilience. Sites with diverse fiber networks are highly sought after, as greater fiber diversity improves performance by reducing latency and supporting bandwidth-heavy activities like videoconferencing and cloud computing. By choosing sites with advanced digital infrastructure, properties can meet the demands of a connected workforce and evolving technologies. Whether enabling smart systems or supporting data-driven operations, robust connectivity is now indispensable for long-term success.
The foundation of smart site selection
Resilient, adaptable infrastructure does more than support daily operations—it also shapes how buildings function, consume resources, and contributes to long-term sustainability. It is the foundation that determines whether a site can sustain business operations, adapt to future demands, and drive long-term value. From energy and water access to digital connectivity and transportation networks, every element plays a role in shaping how a property functions and remains competitive.
In a world shaped by disruption and transformation, infrastructure remains one of the most dependable predictors of resilience. And for organizations focused on long-term growth, it is one of the most strategic investments they can make—for their businesses to grow and for communities to thrive.
One thing is certain: Adopting a data-driven approach is essential. By harnessing analytics and insights, companies can transform uncertainty into a competitive advantage and create strategies that drive long-term success.
To support our experts in this space, we created Athena External Link, our proprietary site selection tool.
Athena External Link is an interactive mapping platform that combines infrastructure, environmental and Cushman & Wakefield proprietary research data to help our clients make informed decisions about data centers and industrial sites. It streamlines the site selection process by providing a comprehensive view of U.S. locations, allowing users to analyze sites and visualize key infrastructure, such as fiber networks, petroleum pipelines, and natural gas pipelines, on a centralized, accessible platform.
