Warehousing Woes and Data Centres

Lately, I’ve come across several articles talking about the challenges around warehousing, zoning, and how we are using land—especially with urbanization picking up pace. It's a complicated issue with so many moving parts, but here are some of my thoughts.

Zoning: Are We Maximizing Value?

One thing I have noticed is how zoning often limits the potential of warehouse spaces. Warehouses in poorly planned zones aren’t able to command the rentals they deserve. It’s sad to see high-value industrial land not getting the right attention while warehousing often spills over into agricultural areas.

And let’s face it, with a growing population, we can’t afford to keep encroaching on fertile land. That’s food security we are messing with! Why aren’t we thinking about vertical warehousing in urban zones or using barren land better?

Data Centres: The Land Value Game-Changer

Here’s an interesting twist. While warehousing struggles with zoning and undervaluation, data centres are changing the game. They boost land value wherever they are set up—but do they really need to be near cities?

Think about it. Data centres don’t need prime land. They can sit in remote, barren areas and still function perfectly. The catch? Infrastructure. Roads, power, internet connectivity—it all needs to reach those far-off locations. It’s an opportunity to rethink how we approach land use.

Urbanization and Density: The Balancing Act

As cities grow denser, land values near urban areas shoot up. That’s great for investors, but it pushes warehouses and similar facilities to the outskirts. It’s a delicate balance. On one hand, we need efficient logistics close to consumption hubs. On the other, we can’t keep losing agricultural land or open spaces to industrial sprawl.

So, What Needs to Change?

Here’s what I think could help us move in the right direction:

• Better Zoning Policies: Let’s keep warehouses out of fertile areas and make the most of underused land.

• Infrastructure Investment: If we want data centres on barren land, we need to connect those areas—roads, power, and digital networks aren’t optional.

• Vertical Warehousing: Why not build up instead of out? It’s efficient, especially in high-density areas.

• Clear Land Usage Guidelines: We need stricter policies to protect agricultural land.

• Technology: Automation and robotics in warehouses can reduce the need for sprawling setups, making vertical warehousing a practical reality. Even for data centres, tech-driven innovations in energy efficiency and cooling systems can make remote operations far more feasible, reducing dependency on urban proximity.

My Take

We are at a point where warehousing and data centres are vital for economic growth, but they need to work with our land resources, not against them. It’s about rethinking how we view and use land in a rapidly urbanizing world.

Are we ready to prioritize sustainability without sacrificing growth? Are we prepared to leverage technology to push the boundaries of innovation? I believe the answer is yes—because it’s no longer a choice; it’s a necessity. Would love to hear your thoughts on this.