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 Impact

Data center site selection plays a critical role in shaping performance, cost, scalability, and deployment speed, serving as a cornerstone of effective infrastructure development, making it a foundational element of successful infrastructure development. Increasing power demands, regulatory complexity, and sustainability expectations require a coordinated, forward-looking approach to ensure long-term operational success.

List of impacts on data centers:

• Strategic site planning directly influences data center performance, cost, scalability and deployment outcomes, making it a foundational decision that affects both initial design and long-term operations.
• Power availability and grid constraints now shape where and how data centers can be built, requiring early coordination with utilities to ensure project feasibility and timeline certainty.
• The rise of AI and high-density workloads is increasing infrastructure demands, driving the need for larger sites, higher power capacity, and more advanced cooling and resource planning.
• Permitting requirements and timelines significantly impact speed to market, making proactive engagement with authorities essential to reduce risk and avoid delays.
• Environmental and neighborhood considerations are increasingly influencing site viability, requiring developers to integrate sustainability, resource efficiency, and stakeholder engagement into planning decisions.

Author Acknowledgements

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Highlights

1. Prioritize power availability and grid capacity early in site selection, as utility constraints and interconnection timelines are now primary drivers of feasibility and schedule risk.
   
   
2. Align site planning with anticipated workload demands, including AI and high-density computing, to ensure sufficient space, power, and cooling capacity for long-term scalability (see ASHRAE TC 9.9 guidance).
   
   
3. Integrate resource considerations from the outset, including energy efficiency, water use, and renewable energy opportunities, in alignment with updated and emerging ASHRAE environmental guidance.
   
   
4. Engage utilities, regulatory authorities, and local stakeholders early in the process to reduce permitting risk, improve time to market, and support public acceptance.
   
   
5. Design sites for flexibility and phased expansion, enabling adaptation to evolving technologies, regulatory requirements, and operational needs over the facility lifecycle (see Uptime Institute Tier considerations for resilience planning).

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Discussion

Strategic planning and siting for modern data centers refers to the multidisciplinary process of evaluating, selecting, and preparing locations for digital infrastructure based on technical, environmental, economic, and regulatory criteria. Unlike traditional facility siting, data center planning must account for highly specialized requirements, including continuous power availability, thermal management, connectivity, and operational resilience. In this context, early-stage decisions including site location, utility access, and environmental conditions have lasting implications for system design, performance, and total cost of ownership over the facility lifecycle.

As demand for digital infrastructure continues to grow, the site planning process has become more complex and constrained. Historically, proximity to population centers and network hubs was a primary consideration, particularly for latency-sensitive applications. While this remains important, emerging AI and high-performance computing workloads are shifting priorities toward power availability, land scalability, and long-term infrastructure capacity. In many regions, access to reliable, high-capacity power has become the dominant factor influencing where data centers can be developed, often outweighing traditional location drivers, such as workforce availability and proximity to customers. Not all potential sites are suitable for large‑scale AI data centers due to power, regulatory, or community constraints.

Permitting requirements and timelines, and neighborhood considerations are playing an increasingly significant role in site viability and project timelines. Environmental factors, including weather conditions, water availability, noise or visual impacts, as well as addressing local reporting, permitting, and sustainability goals, must also be evaluated early, as they directly influence cooling strategies and energy efficiency. Guidance from organizations such as ASHRAE reinforces the importance of integrating environmental stewardship, energy performance, and responsible resource use into planning decisions. As a result, effective data center siting requires a coordinated, forward-looking approach that aligns technical design, infrastructure availability, regulatory pathways, and stakeholder engagement to support reliable, scalable, and sustainable operations.

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Recommended Practices

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Where to Learn More

ASHRAE Technical Committee 9.9—Thermal Guidelines for Data Processing Environments

Provides recommended and allowable environmental envelopes for IT equipment operation, informing cooling design, site selection, and climate-related planning decisions.  Access to the Thermal Guidelines for Data Processing Environments is via the ASHRAE TC 9.9 Datacom Encyclopedia https://datacom.ashrae.org

ASHRAE Datacom Series (including Liquid Cooling Guidelines and Best Practices)

Offers guidance on cooling technologies, including emerging approaches for high-density and AI workloads, supporting alignment between site conditions and mechanical system design. https://store.accuristech.com/ashrae/subgroups/42755

ASHRAE Environmental Sustainability and Energy Efficiency Guidance such as Standard 100 and the Advanced Energy Design Guides

Provides direction on energy performance, environmental impact, and responsible resource use, supporting integration of sustainability considerations into site planning and design.
https://www.ashrae.org/technical-resources/bookstore/standard-100
https://www.ashrae.org/technical-resources/aedgs

Uptime Institute Tier Standard: Topology

Defines levels of redundancy and fault tolerance for data center infrastructure, informing resilience planning and long-term operational reliability.
https://uptimeinstitute.com/tiers

ISO/IEC 27001—Information Security Management Systems

Establishes requirements for managing information security risks, relevant to site selection considerations such as physical security and risk exposure.
https://www.iso.org/isoiec-27001-information-security.html

ISO 22301—Business Continuity Management Systems

Provides a framework for ensuring operational continuity and resilience, supporting site selection decisions related to risk mitigation and disaster recovery.
https://www.iso.org/standard/75106.html 

U.S. Department of Energy (DOE)—Data Center Energy Practitioner (DCEP) Program

Offers resources and training related to energy efficiency in data centers, supporting performance optimization and operational best practices.
https://datacenters.lbl.gov/dcep

Federal Permitting Dashboard (FAST-41)

Provides visibility into federal permitting timelines and coordination for large infrastructure projects, including those with significant energy or environmental impact.
https://www.permits.performance.gov

Virginia Economic Development Partnership (VEDP) and Nevada Governor’s Office of Economic Development (GOED)

State-level resources for understanding data center tax incentives, economic development programs, and regulatory requirements relevant to site planning.
https://www.vedp.org/incentive/data-center-retail-sales-use-tax-exemption
https://goed.nv.gov/incentives/

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Case Studies

Case Study 1: Northern Virginia (Loudoun County)—Mature Market Under Constraint

Context: Northern Virginia represents one of the most established hyperscale data center markets globally, with development historically driven by proximity to major network interconnection hubs and population centers. Typical deployments in this region have evolved from 20–50 MW facilities to multi-building campuses exceeding 100 MW.

Application: Recent projects in Loudoun County have required more rigorous site planning because of increasing power constraints, zoning changes, and community opposition. Developers must coordinate closely with utilities to assess available capacity and plan for interconnection timelines that can extend 3–5 years or longer in constrained areas. In parallel, updated zoning regulations have removed many “by-right” development pathways, requiring discretionary approvals and more detailed site planning submissions early in the process.

Key Takeaways:

• Power availability and interconnection timelines are now primary determinants of feasibility.
• Mature markets may present significant schedule risk despite strong connectivity advantages.
• Regulatory and community factors can materially influence project approval and delivery timelines.

Case Study 2: Texas Emerging Markets—Power-Driven Site Selection

Context: Several regions in Texas have experienced rapid data center growth due to relative power availability, large land parcels, and favorable economic incentives. Projects increasingly target campus-scale developments ranging from 100 MW to 500+ MW, particularly for AI and high-performance computing workloads.

Application: Developers in these markets are prioritizing access to high-capacity power over proximity to major population centers, reflecting a shift in siting strategy driven by AI workloads. Early engagement with utilities is required to secure capacity and define infrastructure upgrades, with interconnection timelines typically ranging from 2–4 years depending on location and load size. Site plans often incorporate phased development approaches to align infrastructure buildout with demand growth.

Key Takeaways:

• Power availability is increasingly the primary driver of site selection.
• Large-scale campus planning enables phased expansion and capital efficiency.
• Early coordination with utilities is essential to align project timelines with grid capacity.

Case Study 3: Nevada—Incentive-Driven Development with Integrated Planning

Context: Nevada has positioned itself as an attractive location for data center development through state-level tax abatements and coordinated economic development programs, supporting projects that typically range from 50 MW to 200+ MW, with potential for larger campus expansion.

Application: Projects in Nevada often integrate renewable energy strategies and long-term infrastructure planning to meet eligibility requirements and align with sustainability goals. Coordination with the Governor’s Office of Economic Development (GOED) and utilities supports more predictable approval pathways, with permitting and infrastructure coordination timelines generally ranging from 2 to 3 years, depending on project scale and utility readiness. Site planning emphasizes land availability, energy access, and alignment with regional economic priorities.

Key Takeaways:

• Incentive programs can support development but require alignment with investment and operational criteria.
• Coordinated state-level engagement improves predictability in permitting and approvals.
• Integration of energy strategy and site planning supports both economic and sustainability objectives.

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