Data Center Land Option Payments: What Landowners Are Being Paid

⚡ Quick answer

• Option money is not the sale price. It pays for the developer's exclusive right to decide later.
• Reported examples: a $250,000 non-refundable option fee on 275 acres in Richland, WA; a $250,000 escrow in a 2026 Texas lease.
• Option periods often run 3–10 years with annual payments, per Farm Progress.
• Odds matter: many options are never exercised, so the option payment may be the only money you receive.

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Option payment vs. purchase price

Most first offers to landowners are an Option to Purchase or Option to Lease. As Farm Progress explains, these are not true offers: the company pays you during an option period to test, study and permit the land, and it keeps the right to walk away. The large purchase price in the document is paid only if the option is exercised, and that is far from certain.

So evaluate two numbers separately: what you are guaranteed to receive while your land is tied up, and what you would receive if the deal closes.

Real reported examples

Richland, Washington: the city approved an option agreement with Atlas Agro on 275 acres for a data center, with a $250,000 non-refundable fee. If exercised, the purchase price would be just under $24 million.

Hallam, Nebraska: landowners optioned more than 1,500 acres, worth more than $8 million, to a hyperscale developer, according to KOLN 10/11. One farmer said he was offered tens of thousands of dollars per acre and declined.

Maysville, Kentucky: the Wall Street Journal reported purchase offers of $48,000 and $60,000 per acre on 463 and 71 acres of farmland. Those are sale prices, not option fees.

Potter County, Texas: in a 2026 ground lease disclosed by SEC filing, the tenant puts $250,000 in escrow once the lease memorandum is recorded and has a one-year inspection period, extendable by a year.

How option payments are usually structured

Common structures include a single upfront non-refundable fee, annual payments through the option period, and staged payments that rise as diligence milestones clear. Farm Progress notes option periods typically last three to ten years with annual payments. Ask whether payments credit toward the purchase price, which payments are non-refundable, and how many unilateral extensions the buyer can trigger.

Checklist before you sign

Have a real estate or agricultural attorney review it. Confirm the total guaranteed payment, including extensions, against the years your land is off the market. Check what testing and access rights you are granting and who restores the land. Be wary of “only offer” deadlines. And find out whether the buyer is the actual developer or a middleman planning to resell the option.

Frequently Asked Questions

How much do data center option payments pay per acre?

There's no set rate, and many deals are confidential. Public examples include a $250,000 non-refundable option fee on 275 acres in Richland, WA. Reported sale offers are much higher; the WSJ reported $48,000–$60,000 per acre in Kentucky.

Do I keep the option money if the developer walks away?

Only the portions the agreement makes non-refundable. Negotiate for non-refundable payments that compensate you for the time your land is off the market.

How long can an option tie up my land?

Farm Progress reports option periods typically run three to ten years. Count every extension the buyer can trigger, not just the initial term.

Can I get competing interest before signing an option?

Yes. Submitting your site for a confidential review lets more than one buyer see it before you commit to exclusivity.

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Sources

Figures are reported examples from public filings and news coverage, not offers or appraisals. Every deal is negotiated individually. Not legal, tax, or financial advice — consult an attorney before signing.

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