Thought Leadership

News and Insights

Data center trends in 2026: How AI infrastructure policy impacts development

In recent years, data center development has been driven by land availability, power access, and fiber connectivity. Today, regulations and policy are emerging as a leading factor and often shape project viability even before these fundamentals.

This shift is accelerating with the emergence of “Stargate,” a federal initiative focused on expanding artificial intelligence (AI) infrastructure across the United States. These projects are pushing data center campuses beyond hundreds of megawatts into the gigawatt range and higher, with up to $500 billion in planned investment by 2029. As a result, governments, utilities, and communities are rethinking how they plan for and respond to this scale of growth.

Because of this rapid momentum, data center development regulations are surging as well. In 2025 alone, more than 200 state-level bills were introduced addressing energy use, water consumption, zoning, and other aspects of data center development.

This marks a fundamental shift for developers. Policy is now central to project strategy and must be addressed early to avoid costly permitting delays. At Atwell, we work with clients early in the process to evaluate policy risk alongside data center site selection and infrastructure considerations, helping clients focus on projects with strong viability.

Policy friction 

Projects that are technically feasible from an infrastructure standpoint are increasingly being delayed or stopped due to policy challenges. Multi-phase, gigawatt-scale campuses are prompting policymakers to reconsider:

  • How data centers connect to the grid
  • How infrastructure costs are shared
  • How communities absorb large-scale development

Policy is evolving in real time, increasing data center site selection policy risk for developers evaluating new markets.

Policy and project economics 

Data centers are increasingly classified as “large load” infrastructure, and demand at the scale of Stargate projects is reinforcing that classification. In response, states and utilities are introducing policies that:

  • Require developers to fund grid upgrades and interconnection costs through financial guarantees during the power commitment process
  • Establish new rate structures for high-demand users
  • Mandate participation in demand response or curtailment programs

At the same time, the scale of these projects is reshaping how energy is sourced. Massive campuses that will require lots of power are difficult to support through traditional grid expansion alone. Because of this, policymakers and utilities are exploring:

  • Behind-the-meter generation
  • Co-located energy infrastructure
  • New regulatory pathways for self-supplied power

Energy strategy is no longer just about securing capacity but about navigating AI data center infrastructure policy alongside utility and regulatory requirements. This shift requires earlier evaluation of interconnection risk, more flexible site design, and closer integration of energy infrastructure into land planning.

Emerging local policy 

While federal and state policies set the tone, local governments are playing a larger role in determining project outcomes. Stargate-scale campuses require extensive land, significant resources, and major transmission infrastructure. While these projects require significant resources, it is important to separate facts from uncertainty to support informed decision-making. These factors are drawing increased scrutiny at the local level.

In response, municipalities are:

  • Implementing halts on new data center development
  • Introducing stricter zoning and conditional use requirements
  • Linking approvals to impacts such as water use, noise, and visual scale

Data centers are becoming increasingly scrutinized and require stricter approval requirements. Approval depends on early alignment with local priorities, clear articulation of impacts, and proactive responses to community concerns. Site design is no longer just technical – it is a tool for securing approvals.

Incentive shifts 

Tax incentives have long played a role in data center development, but that model is evolving. States are reevaluating incentive programs and assessing net benefits of data center facilities on local communities.

Larger, campus-scale developments are accelerating this shift toward performance-based incentives, infrastructure-related requirements, and a greater emphasis on long-term community benefit. For developers, this means incentives are no longer assumed but negotiated based on how projects contribute to infrastructure, design, and community outcomes.

The federal-state-local tension triangle 

One of the most important realities in 2026 is that there is no single authority governing data center development. Federal agencies are beginning to treat AI infrastructure as strategically important. States oversee utility regulation and incentives for data center development, while local governments control land use and approvals.

The scale of emerging demand is putting pressure on all three levels at once, leading to policy overlaps, conflicting requirements, and uncertain timelines. As a result, policy due diligence regarding AI data center infrastructure must begin as early as site evaluation.

What happens next? 

Projects are getting larger, impacts are becoming more visible, and policy is evolving in response. Successful projects in this environment are not just well-engineered but well-positioned within the policy landscape from the start.

Developers will need to anticipate policy risk early, translate regulatory requirements into design solutions, and align infrastructure decisions with community and regulatory expectations.
The question is no longer just “Can we build here?” but “Can we build here at this scale, within this policy environment, and how should we design for it?”

Atwell helps clients navigate this by aligning planning and regulatory strategy early, separating facts from conjecture, and positioning projects for compliance and long-term success. Connect with our team to discuss how policy shifts could impact your data center project.

About the Author

Kevin Coughlin

Vice President

Kevin Coughlin serves as a Vice President with approximately 20 years of Mission Critical, Power and Industrial/Commercial experience. He currently leads several Mission Critical strategic growth initiatives and provides subject matter expertise to clients on Atwell’s integrated Land and Power services. His experience from early due diligence through engineering and construction provides the foundation to guide projects from the earliest concept stages through completion. 

News and Insights

The spaces in between: How the right relationships can move complex energy developments forward

 

Large, complex developments, such as data centers or advanced manufacturing facilities, require coordination among many specialists. Developers, utilities, engineers, municipalities, contractors, and investors all work together to move a project forward. Sound market knowledge, technical expertise, and proper execution are all essential, but one of the most valuable drivers of success is often overlooked: the power of connection.

In fast-growing sectors where timelines are tight and infrastructure demands are high, these connections often determine how quickly a project can move from concept to construction.

Atwell excels not only in our technical expertise but also in the spaces in between. We connect people, solve challenges, and help projects move forward even when a clear path does not yet exist. Because we support projects from concept through completion, our team often sees opportunities others may miss. Through our family of companies, we provide resources spanning the full project lifecycle, and we bring the right people together to create solutions and build new possibilities. These connections often happen outside formal project scopes, in conversations or introductions that bring the right expertise together at the right moment.

The “spaces in between”: where projects move forward 

Many projects stall not just because of technical barriers, but also because the right relationships have not yet been formed.

For example, a developer may need power solutions, and a utility may have capacity but lack a partner to execute quickly. Atwell sits at the intersection of these conversations and can introduce teams or partners who can turn a project from an idea to a reality.

In other cases, a municipality may be seeking economic growth while a developer is searching for the right location for their project. Our in-house teams leverage their industry relationships while prioritizing thoughtful community engagement to make the right introductions. When those priorities align, new opportunities emerge that benefit both the community and the project.

Our national presence with local expertise enables us to build connections at every level needed to bring a project to completion. If we do not have the solution, someone in our network or family of companies will, and we will help to make that connection. We not only advocate for our clients but also connect them with the people and resources they need to get the job done.

Creating connections that unlock opportunities 

Our team excels at thinking beyond traditional solutions. By combining technical expertise with strong industry relationships, we often identify opportunities others might miss.

James Hall, Executive Vice President of Special Projects, recently shared an example from a data center conference.

“I was wrapping up a meeting with a potential client and was running late to meet with an existing client,” Hall said. “Instead of cutting the conversation short, I suggested they join me for the next meeting because I believed their two companies should meet. This was a bit of a risky move that turned out to be the right call. The introduction created a strong connection between their two organizations and opened the door to new opportunities not just for the industry but also for our team. Sometimes thinking on your feet and bringing the right people together can make all the difference.” Moments like these happen in the spaces in between, when the right introduction at the right time brings new partnerships and projects to life.

While the conversation started as a simple introduction, it ultimately led to a new working relationship between two organizations that may not have otherwise connected. In industries as collaborative as data center development, these relationships often become the foundation for future projects.

Why Atwell is positioned to make these connections 

Atwell works across the full project lifecycle, offering solutions from site selection and due diligence to engineering, permitting, construction management, and power delivery solutions.

Our family of companies expands the expertise we can bring to every project. Because we collaborate with developers, utilities, municipalities, and contractors nationwide, we often see opportunities to connect partners who can solve challenges together.

This perspective allows us to identify connections that others may not see—linking ideas, expertise, and resources across organizations to keep projects moving forward.

Connection fuels progress 

Progress on complex projects rarely happens in isolation. It happens through collaboration, shared expertise, and relationships built over time. By working in the spaces in between—connecting the right people, ideas, and resources—opportunities can be transformed into real projects that move industries and communities forward.

 

News and Insights

Building through uncertainty: How developers navigate market cycles

 

Uncertainty is shaping today’s real estate market, but opportunity remains strong for those prepared to move with clarity and discipline.

Elevated interest rates, uneven job growth, persistent inflation, and evolving government regulations have slowed decision-making and tightened capital. Many developers are approaching projects with greater caution. Yet the market is not retreating – it is recalibrating.

Investment sales volume increased by 16% in the first half of 2025, reaching $221 billion. At the same time, buy sentiment for 2026 is the highest it has been in the past 20 years of tracking. Capital is still active, but it is much more selective. Investors are refining strategies, prioritizing fundamentals, and aligning capital with projects positioned for long-term durability.

In this environment, uncertainty is not eliminating opportunity. It is refining it.

Developers are facing three layers of pressure

  1. Financial pressure: Capital is selective but not absent

The price of capital itself has increased and debt is more expensive. Because of this, equity partners are seeking stronger downside protection and lenders are applying higher scrutiny throughout the process. These conditions create additional challenges, especially for smaller developers who may face tighter lending standards and higher costs. More established, well-capitalized groups tend to have more flexibility to move projects forward.

However, capital is not leaking out of the market and opportunities remain across a range of developers and project types. Transaction volume is increasing and investors are actively pursuing opportunities. The key shift is in clarity. In the past, investors prioritized future growth potential but in today’s market, investors want disciplined strategies built for steady performance and long-term durability.

2. Execution pressure: Predictability is a competitive advantage

Pressure also exists in the availability of the workforce, supply chain, utility lead times, and complex regulatory and entitlement processes. This impacts scheduling and budgeting which in turn influences financing terms.

Lenders and equity partners are asking deeper questions:

  • Is utility capacity confirmed?
  • Are off-site improvements defined?
  • Is there a realistic and well-mapped entitlement path?
  • Are contingencies sufficient?

Projects that address these questions early on improve overall clarity, minimize the time it takes to secure approvals, and improve cost reliability, which in turn increases confidence.

3. Market pressure: Demand is concentrated, not declining

Demand hasn’t vanished, it has just become more concentrated. Investors are shifting their priorities towards markets with infrastructure investment, population growth, diversified employment bases, and strong municipal alignment.

Well-positioned assets in strong markets continue to lease and trade. Projects in marginal locations or without clear structure face greater resistance.

Strong fundamentals still win, perhaps more now than ever before.

Risk or opportunity?

Although market pressure clearly exists, real estate leaders have faith in future buying opportunities. Data continues to point towards engagement with rising numbers of transactions and strong buy sentiment. When we have seen capital become more selective in the past, we have also seen shifts in:

  • More realistic land pricing
  • Reduced competition
  • Lower oversupply risk
  • More disciplined project assumptions
  • A shift from short-term flips to long-term holds

During these times of recalibration, stronger projects will be the ones selected to move forward and weaker projects will be filtered out.

Uncertainty isn’t wiping opportunity out; it is sharpening it.

Is development slowing or evolving?

Development is not pausing; it is maturing. During expansion market cycles, projects are rewarded for speed and scale. During more complex cycles like the one we currently face, sequencing and precision are most crucial. Capital projects are being built for longevity.

We are also seeing increased emphasis on partnership-driven development. Public-private collaboration, infrastructure coordination, and community alignment are playing larger roles in project success.

From the outside, activity may appear slower. In reality, it is more deliberate and ultimately more durable.

Where long-term stability is built  

Regardless of the current market cycle, stability is rooted in fundamentals rather than speed.

Markets that sustain performance over time tend to share a few common characteristics:

  • Population growth
  • Diverse employment bases
  • Infrastructure capacity
  • Transportation access
  • Reliable utilities
  • Clear entitlement processes
  • Collaborative policy environments

These factors reduce uncertainty while supporting long-term demand across housing, retail, industrial, and mixed-use development.

Stability is not about chasing the fastest-growing market each year. It is about identifying locations with strong foundations that can adapt and endure over decades.

The developer mindset that wins

Market shifts test both execution and mindset. Developers who perform consistently even through uncertainty tend to share a common mindset: they value patience, clarity, and long-term solutions. Rather than having immediate reactions to market trends, they anchor their decisions over longer periods of time.

They do not wait for perfect clarity and they plan for change. They rely on data, experience, and disciplined execution and are comfortable with complexity. They also recognize the value of working with experienced partners who can help navigate regulatory requirements, manage risk, and bring clarity to complex decisions throughout the development process.

The main difference is not optimism or caution but rather preparedness.

Opportunity laced with complexity

Uncertainty will always be part of real estate development. What defines success will not be simplicity but rather the ability to move forward with a structured vision and a strong sense of judgment.

Opportunity exists; it just favors those prepared to build through the complexity, not around it.

If you are evaluating your next project or reassessing strategy in today’s market, our team is ready to help you plan with clarity and confidence. Let’s start the conversation.

About the Author

Dev Sitaram

Senior Director

Dev Sitaram has advised clients on land development projects across the Mid-Atlantic region for more than 40 years. He specializes in serving national and regional homebuilders, bringing deep experience in master-planned communities and a strong understanding of stakeholder priorities from project inception through occupancy. He is recognized for successfully guiding clients through complex permitting and entitlement processes in some of the region’s most demanding regulatory environments.

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Powering what’s next: Why location, timing, and balance will shape the energy transition

 

Electricity demand in the U.S. is no longer a future discussion – it’s here, and it’s accelerating.

After more than a decade of relatively flat growth, forecasts now point to U.S. electricity demand increasing more than 40% by 2050. In some regions, that growth is happening even faster.  The drivers are clear: electrification, reshoring of manufacturing, and the explosive growth of AI and data centers.

Data centers alone could account for 7-12% of total U.S. electricity consumption by the end of the decade, according to the Department of Energy. That’s a structural shift in load – and it’s happening on compressed timelines.

At the same time, renewable energy continues to dominate new capacity additions.  In 2024, roughly 80-90% of new U.S. generation added to the grid came from solar, wind, and battery storage, with solar leading for multiple consecutive years. Today, renewables generate more than 20% of U.S. electricity – and an even larger share of what’s sitting in interconnection queues.

So, the question is no longer if demand is coming. The question is whether the industry can deliver infrastructure fast enough – and in the right places – to meet it.

Geography will determine who wins 

Not all load growth is created equal. In ERCOT, we’re seeing some of the fastest demand growth in the country, with solar and storage scaling to meet peak demand.  In the Midwest and Southeast, growth is being driven by manufacturing, EV supply chains, and population shifts.  In PJM – particularly Northern Virginia – data centers are creating concentrated, high-density load pockets that are stressing existing transmission systems.

This isn’t just about resource quality anymore.  It’s about proximity to load, transmission availability, and the reality of how long it takes to build. The projects that succeed will be the ones aligned with real demand and real grid conditions – not just the best solar irradiance or wind speeds on a map.

Timing is now the biggest risk – and opportunity 

One of the biggest disconnects in the market today is timing. Load is being announced quickly.  Infrastructure is not.

Interconnection queues across the U.S. now total multiple terawatts of generation and storage capacity.  Many projects face years of studies, permitting challenges, and upgrade requirements before they can move forward. At the same time, new load – especially data centers – is moving on aggressive timelines.  If generation shows up too early, projects stall. If it shows up too late, reliability and cost pressures increase.

Execution – not ambition – is becoming the differentiator. 

A balanced energy mix is not optional.

As demand accelerates, the conversation is shifting back toward reliability – and with that, a renewed focus on natural gas and other forms of firm, dispatchable generation. That shift is real, and it’s necessary.

The grid needs dependable capacity that can show up on demand. But that doesn’t reduce the role of renewables – it clarifies it. Renewables, natural gas, and storage are not competing priorities. They are complementary parts of a system that have to deliver power at scale, reliably, and at a reasonable cost.

At the same time, the long-term direction is hard to ignore. Even with policy shifts and changing political priorities, the fundamentals driving cleaner energy remain in place – corporate sustainability commitments, customer expectations, and the simple reality that emissions and environmental impact don’t pause for election cycles. You don’t have to agree on every aspect of climate policy to recognize where this is going. The energy system is getting cleaner over time – not all at once, and not in a straight line – but steadily. The real work is making sure we build a system that is both reliable today and sustainable over the long term.

Turning demand into real progress 
There is a real opportunity in front of us. Renewables and storage are now among the lowest-cost sources of new generation in many markets.  Battery storage capacity alone has grown more than tenfold in the past five years, fundamentally changing how we think about reliability and peak demand. But none of that matters if projects can’t get built.

Delivering on this moment requires alignment – between developers, utilities, regulators, and infrastructure partners. It requires a clear understanding of where load is actually materializing, when it will come online, and what it will take to serve it. Because in today’s market, success isn’t just about developing projects. It’s about developing the right projects – in the right places – at the right time. That’s how we turn load growth into real, buildable progress – and continue moving toward a more resilient and diversified energy future.

About the Author

Jason Utton

Senior Vice President

Senior Vice President of Atwell’s Power Group, Jason Utton has been developing renewable energy projects for more than 17 years, with experience in wind, solar, and battery storage projects across the country. He currently provides large scale investment and development clients with business goal setting, renewable portfolio optimization, and capital deployment strategies.

News and Insights

The U.S. grid’s historic crossroads: Meeting surging electricity demand through transmission expansion

 

The U.S. electric grid stands at a historic crossroads. After two decades of stagnant demand, electricity consumption is surging, driven by AI data centers, semiconductor fabrication, and widespread electrification. The Department of Energy projects a 57 percent expansion in interregional transmission capacity by 2035, signaling a generational shift in how the grid must be planned and built.

In the Midwest, MISO’s (Midcontinent Independent System Operator) $21.8 billion Long-Range Transmission Plan Tranche 2.1 represents the largest grid expansion in decades.  These projects are large, complex, and highly visible.  Experience shows that their success or failure is often determined long before construction begins.

The importance of aligning early to avoid dreaded project delays

Transmission projects rarely fail because of steel, conductor, or substations. They stall because of misalignment early in development when routing decisions, permitting strategies, land access, and stakeholder expectations are still fluid. In today’s environment, delays at this stage are costly, public, and difficult to recover from.

Through Atwell’s work on complex, transmission corridors, we have learned that the most significant risks tend to cluster early. When routing, environmental review, survey access, title clarity, and stakeholder engagement are treated as separate efforts, projects lose momentum precisely when certainty is most needed. Fragmentation creates blind spots, rework, and missed opportunities to address issues before they harden into opposition or regulatory delay.

The projects that move forward most smoothly share a common trait: early integration across disciplines, with decisions made using a shared understanding of constraints, risks, and downstream impacts.

Our experience extends across the complete sequence of activities that determine project success, and based on extensive history, integration of the key efforts plays a vital role:

  • Routing and GIS analysis – Evaluating alternative corridors using environmental, cultural, and land-use constraints to identify viable paths
  • CPCN strategy – Managing the complete Certificate of Public Convenience and Necessity process, from stakeholder engagement through testimony and compliance
  • Survey services – Multi-crew capacity delivering defensible boundary mapping, topographic surveys, and GIS-integrated parcel exhibits
  • Environmental studies – Wetland delineations, species surveys, cultural assessments, and agency coordination ensuring regulatory compliance
  • Title services – Comprehensive title reviews identifying and resolving encumbrances that could derail ROW acquisition
  • Land acquisition – Experienced agents securing permissions, negotiating easements, and managing landowner outreach across multi-state corridors

What experience has taught us about what really drives success

Across completed and ongoing transmission efforts, several patterns have emerged.

First, routing decisions improve dramatically when GIS analysis, environmental constraints, and land-use realities are evaluated together, not sequentially. Early comparison of alternative corridors using real data rather than assumptions reduces later re-routing, strengthens CPCN filings, and improves defensibility with regulators and stakeholders.

Second, survey and environmental work are not just technical steps; they are risk-management tools. Accurate, defensible base mapping and timely field studies reduce uncertainty for engineers, regulators, and landowners alike. Projects that invest early in these foundations experience fewer surprises and smoother transitions into permitting and ROW acquisition.

Third, title clarity is often underestimated until it becomes a problem. Unresolved encumbrances, access gaps, or ownership issues can derail schedules late in development. Experience has shown that identifying and addressing title risk early materially improves acquisition timelines and financing confidence.

Finally, stakeholder engagement works best when it is proactive and informed by data. Communities and landowners respond more constructively when they see that alternatives were evaluated, impacts were considered, and concerns were anticipated, not after decisions are locked in. Early transparency builds trust and reduces the likelihood of opposition escalating during formal proceedings.

Perspective and partnership

From a client perspective, early-phase transmission work is not about checking boxes, it is about protecting schedule, budget, and credibility. Competitive RFPs, CPCN processes, and regulatory reviews increasingly reward teams that can demonstrate readiness, coordination, and foresight. The ability to show that routing alternatives were explored, environmental risks were understood, land access was planned, and stakeholder concerns were addressed early is now a differentiator, not a luxury.

For utilities and developers operating in MISO’s footprint, this is especially important. Tranche 2.1 projects will be scrutinized not only for cost and engineering, but for how well risk is managed across land, environment, and public interface. Early decisions compound quickly, for better or worse.

A Perspective Built on Integration

Atwell’s role in these projects has reinforced a simple conclusion: the early phase determines everything that follows. Integration is not about efficiency for its own sake; it is about creating clarity in a process that is inherently complex and high-stakes.

Our experience across Michigan, Wisconsin, Minnesota, Illinois, Indiana, and Missouri has shaped a delivery approach centered on integration, transparency, and anticipation of risk. That perspective—earned through real projects, real constraints, and real stakeholder environments—is what we bring to each new corridor.

As Tranche 2.1 advances and additional portfolios emerge, Atwell knows that the need for thoughtful, early-phase coordination will only grow. The projects that succeed will be those that treat early development not as a preliminary step, but as the foundation for long-term success.

 

About the Author

Courtney Schmidt

Vice President

Courtney has managed and provided technical expertise to programmatic efforts across the country for over 22 years. She has passion and experience in building teams across geographies and disciplines, siting facilities, and managing development and operations activities for clients.

News and Insights

Seven megatrends shaping Power & Energy in 2026

 

The power and energy market has never lacked capital, technology, or ambition. What it has lacked, and continues to lack heading into 2026, is time. Electric load is growing faster than the grid can respond. Policy is moving slower than markets. Interconnection queues are overwhelmed. Communities are more engaged, more skeptical, and more willing to stop projects outright. And capital, while abundant, is becoming far more selective.

This year, success will hinge less on bold forecasts and more on execution discipline. The next cycle will reward projects that are well-sited, grid-aware, and realistically deliverable – and punish those built on outdated assumptions.

From Atwell’s vantage point, working across generation, storage, transmission, and large-load infrastructure nationwide, seven megatrends are already reshaping where capital flows and which projects get built.

1. Load growth is real – but geography & timing matter more than headlines

There is no longer serious debate about electricity demand growth. Data centers, AI workloads, electrification, reshoring, and population growth are pushing the system harder than it has been pushed in decades. The Department of Energy (DOE) estimates that data centers alone could increase national electricity consumption by 7-12% by the end of the decade, with the vast majority of that growth concentrated in a limited number of regions rather than spread evenly across the country.

What remains misunderstood is where and when that load actually materializes.

Load growth is highly concentrated, often delayed relative to announcements, and dependent on transmission availability, permitting, water access, and local political alignment. Some regions are pulling ahead quickly. Others, despite strong demand signals, are constrained by grid and siting realities.

For developers, chasing theoretical demand is no longer sufficient. Projects must be aligned with real, executable load pathways, not just macro forecasts.

2. Interconnection has become the primary value driver

Interconnection is no longer a back-office engineering exercise. It is the single biggest determinant of whether a project moves forward and whether it makes money. Small changes in interconnection cost or timing can shift project breakevens materially. Upgrade uncertainty has become one of the top reasons projects stall or die after site control.

In several organized markets, interconnection timelines that once measured in months are now stretching to five to seven years for new generation, fundamentally altering development sequencing and project economics.

In many markets, developers are forced to make go/no-go decisions before definitive interconnection outcomes are known. That elevates the importance of queue-congestion analysis, upgrade sensitivity modeling, and understanding where storage or hybrid configurations can mitigate grid impacts.

Good land without grid advantage is increasingly stranded. Projects that integrate grid realities early are pulling ahead.

3. Solar cannibalization and storage saturation are structural, not cyclical

Merchant assumptions that worked five years ago are breaking down. In high-penetration solar markets, cannibalization is no longer theoretical, it is structural. In the Electric Reliability Council of Texas (ERCOT) North load zone, rapid solar buildout has materially compressed midday pricing, eroding merchant revenues even as total generation capacity continues to grow.

Storage faces a similar reality. Early battery projects captured outsized arbitrage returns, but saturation is already reducing those returns in mature markets.  In the California Independent System Operator (CAISO), increasing battery penetration has driven arbitrage revenues down as competition for the same price spreads intensifies.

This doesn’t mean solar, or storage, are poor investments. It means:

  • Location matters more than ever
  • Revenue stacking must be realistic
  • Modeling must explicitly account for saturation

Projects that ignore these dynamics will underperform. Projects designed around them will continue to attract capital.

4. Storage is the backbone of new power markets – and it comes with new risks

Battery storage is no longer optional. In many regions, it is the economic and operational backbone of new power development.

In 2025 alone, more than 40 giggawatt-hours (GWh) of battery storage was installed in the U.S., with most of that capacity concentrated in CAISO and ERCOT – accelerating both grid flexibility and market saturation.

Storage supports interconnection, manages congestion, smooths intermittency, and enables hybrid configurations. It is also increasingly central to how utilities and large loads think about reliability.

But storage introduces new risks that must be addressed early:

  • Availability and outage risk directly impact revenue
  • Fire codes, setbacks, and safety concerns can halt projects
  • Foreign Entity of Concern (FEOC) compliance and supply-chain uncertainty affect cost and timing
  • Community opposition to Battery Energy Storage Systems (BESS) is increasing

Treating storage as a simple add-on to solar is no longer viable. BESS siting, permitting, and community engagement are now distinct disciplines, and failures in any one of them can derail otherwise strong projects.

5. Data centers are no longer just offtakers — they’re infrastructure partners

One of the most significant shifts underway is how data centers engage with power markets. These customers are creditworthy, often price-insensitive relative to reliability needs, and increasingly willing to co-locate or sponsor generation. Power is no longer an ESG checkbox – it is mission-critical infrastructure.

This shift is most visible in markets such as Northern Virginia, Texas, and parts of the Midwest, where data center demand is reshaping interconnection strategy, site valuation, and development timelines.

Value is moving toward powered land, load-adjacent generation, hybrid front-of-meter and behind-the-meter configurations, and partial islanding models. Developers who understand this shift can unlock new offtake pathways. Those who don’t will struggle to place projects that no longer fit buyer needs.

6. Policy uncertainty isn’t killing projects — it’s killing schedules

Federal policy uncertainty around tax credits, FEOC guidance, permitting, and tariffs is real. But it is not causing widespread project cancellations. What it is doing is elongating timelines and increasing execution risk.

State-level divergence adds another layer of complexity. Some jurisdictions are accelerating capacity additions. Others are increasing scrutiny, particularly around affordability and community impact.

The practical effect is a widening gap between projects that can start construction in 2026 and those that slip into later years, where both pricing and capital availability become far less certain.

The result is a market where speed matters more than ever.

7. The next cycle favors execution discipline over scale

Capital is abundant  but it’s impatient. The market is bifurcating between projects that are executable in the near term and those that are not. Scale alone is no longer enough.

Hybridization is emerging as the default delivery model – combining solar, wind, storage, and, in some cases, natural gas. New greenfield gas faces timing and permitting challenges, while nuclear and Small Modular Reactors (SMRs) remain part of the long-term solution set but face economic and schedule hurdles that limit near-term deployment.

The projects that succeed in 2026 will be those designed around what can be built, not just what looks good on paper.

Where Atwell fits in a market that punishes uncertainty

As these megatrends converge, one thing is clear: the power market is no longer forgiving of late-stage surprises.

Projects no longer fail because the technology doesn’t work. They fail because risk shows up too late – in interconnection, permitting, community response, or execution timing. By the time those issues surface, capital has already moved on.

This is where Atwell’s role has evolved.

We are not just helping clients determine whether a site is technically developable. We are helping them answer whether it is financeable, executable, and aligned with where the market is moving – before significant capital is committed.

That means integrating disciplines that have historically been treated separately:

  • Siting and land strategy, informed by grid and market realities
  • Interconnection intelligence, including upgrade sensitivity and timing risk
  • Policy and permitting risk, evaluated alongside engineering feasibility
  • Community and stakeholder dynamics, addressed early rather than reactively
  • Execution planning, with speed-to-construction treated as a core value driver

In today’s market, those elements cannot be sequenced – they must be designed together.

Speed and certainty are the new competitive advantages

Capital is still available. What’s scarce is confidence. Investors, utilities, and large loads are prioritizing projects that can move quickly with fewer unknowns. The difference between a project that is “possible” and one that is “ready” has never been more valuable.

Atwell’s advantage is helping clients reduce that gap.

Because we work across power generation, storage, transmission, and large-load infrastructure nationwide, we see friction points early – interconnection constraints, permitting triggers, community risk, or schedule killers – and help clients design around them before they become fatal.

In practical terms, that means:

  • Avoiding sites that look good on paper but are unlikely to clear grid or permitting hurdles
  • Prioritizing jurisdictions and configurations where timelines are predictable
  • Structuring projects to be resilient to policy uncertainty rather than dependent on it
  • Supporting hybrid and load-adjacent strategies that reflect how power is being procured today

This approach doesn’t eliminate risk. But it moves risk forward, where it can be managed – instead of discovered after time and capital are already sunk.

A market that rewards realism

In 2026, the power and energy market is entering a phase where realism matters more than optimism.

Projects will continue to be built. Capital will continue to deploy. But the winners will be those who align early with grid reality, policy constraints, and end-user demand – and who can execute with speed and discipline.

That’s the work we are focused on at Atwell: helping clients navigate what’s next, not by chasing headlines, but by building projects that can get across the finish line.

About the Author

Jason Utton

Senior Vice President

Senior Vice President of Atwell’s Power Group, Jason Utton has been developing renewable energy projects for more than 17 years, with experience in wind, solar, and battery storage projects across the country. He currently provides large scale investment and development clients with business goal setting, renewable portfolio optimization, and capital deployment strategies.

News and Insights

Atwell leader insights of 2025: Thoughtfully guiding, collaborating, and delivering impact

 

Throughout 2025, Atwell leaders shared perspectives shaped by their experiences, collaborations, and a deep understanding of the markets we serve. From emerging data center strategies to renewable energy growth, program management, and community engagement, these insights reflect how our teams continue to lead with purpose while helping clients navigate change.

Below is a look back at Atwell leader insights from 2025, highlighting the ideas that helped define our year.

In January, Senior Vice President Jason Utton and Vice President Courtney Schmidt shared insights on the evolving data center market and the critical factors that influence successful site selection. Drawing on experience supporting complex developments nationwide, the discussion emphasized that identifying the right location requires more than available land. Power access, infrastructure capacity, permitting certainty, and long-term scalability all play a defining role.

In February, we honored National Engineers Week by highlighting Atwell engineers Rachel Sutherland, Lindsay Galarza, and Ray Holliday. They reflected on the deeper purpose behind their work and what it means to be an engineer in today’s built environment. They emphasized that engineering at Atwell is rooted in solving real-world problems that improve lives.

In March, during National Surveyors Week, we spotlighted the growing impact of women surveyors across the profession. The conversation highlighted Atwell’s Project Surveyor Tori Aper, Surveying Technician Verena Lake, and Project Surveyor Julie Reincke and focused on how diverse perspectives strengthen project outcomes, foster innovation, and build more resilient teams.

In April, Robert Mitchell, Construction Manager, shared insights on the value an owner’s representative brings to construction projects. Acting as an extension of the owner’s team, our professionals help align stakeholders, manage risk, and maintain momentum throughout the project lifecycle. This perspective reinforced the importance of proactive communication, accountability, and strategic oversight in delivering projects on time and on budget. Also in April, Danielle Peoples, Project Director for Communications and Stakeholder Engagement, explored why renewable energy feels right at home in rural America. Her insights focused on how solar and wind projects can coexist with agricultural land uses while delivering economic benefits to local communities. Success, Peoples noted, depends on early engagement, transparency, and long-term partnership with landowners and stakeholders, areas where Atwell’s local knowledge and national reach intersect.

In May, Courtney Schmidt and Tracey Dubuque, Vice President, addressed the differences and opportunities between project management and program management. As development portfolios expand, clients increasingly need a coordinated approach that aligns multiple projects under a unified strategy. The discussion highlighted how standardized processes, data-driven decision-making, and clear governance help organizations scale efficiently while maintaining consistency and control.

In August, Atwell leaders shared three complementary perspectives that underscored how policy, market forces, and disciplined execution are converging in today’s energy landscape. In one insight, Tracey Dubuque shared how recent federal legislation, often referred to as the One Big Beautiful Bill, is igniting new opportunities in renewable energy while raising the stakes for thorough due diligence. Also in August, Courtney Schmidt and Chase Pelletier, Senior Director, shared how aligning schedules, budgets, stakeholders, and data across portfolios helps organizations respond more effectively to regulatory shifts, supply chain pressures, and evolving client expectations. The August insights concluded with a piece by Tracey Dubuque and Jason Minock, Senior Development Manager, Renewables. They explored the forces driving new demands in energy, including electrification, data center growth, manufacturing expansion, and grid modernization.

In September, Bourke Thomas, Vice President at Atwell, provided updates on federal environmental policy and the strategic considerations developers must account for when planning projects. He identified early environmental review, regulatory awareness, and proactive coordination as key drivers of schedule certainty. Also in September, Danielle Peoples participated as a featured panelist in the Resilient Communities webinar series, offering an inside look at solar development and local community benefits. September also featured insights from James Hall, Executive Vice President of Special Projects at Atwell. In his piece, Hall expanded on the 4 Ps of data center development: power, policy, place, and partnership. Further exploring the data center topic, Courtney Schmidt examined how access to power and connectivity influences decisions about data center locations.

In October, Atwell Project Manager Michael Keith turned his focus to the foundations of exceptional client service. He identified trust, transparency, and teamwork as essential elements in building lasting relationships and delivering consistent value. By fostering collaboration across disciplines and maintaining open communication, Atwell teams are able to anticipate challenges and respond with solutions tailored to client goals.

In November, Atwell Vice Presidents Jim Lowe and Eric Lord examined the onshoring effect and its role in driving rural manufacturing growth. They focused on how access to land, infrastructure investment, and strong partnerships are enabling the expansion of domestic manufacturing. Also in November, Don Manhard shared his perspectives following the addition of Manhard Consulting to the Atwell team, marking a milestone that strengthened our capabilities while reinforcing a shared commitment to client success.

In December, Danielle Peoples explored the intersection of data centers and community engagement. Bringing communities into conversations about data centers and emerging technologies is crucial for building trust and fostering long-term alignment. We wrapped up the year with reflections from Atwell CEO Matthew C. Bissett, who shared Atwell’s 2025 achievements and outlined a forward-looking vision for 2026 grounded in innovation, collaboration, and service.

As we look ahead, these insights reflect who we are as a firm and how we lead. Through continuous innovation, thoughtful partnership, and a commitment to building better outcomes, Atwell remains focused on helping our clients and communities succeed from concept to completion.

News and Insights

CEO Matthew C. Bissett reflects on Atwell’s 2025 achievements and shares the firm’s vision for 2026

 

Matthew C. Bissett is our Chief Executive Officer and President of Atwell. He has been with the firm for 27 years, starting his career as an Atwell intern. During that time, he has distinguished himself as someone who is deeply committed to growth, business diversification, and driving the strategic goals of our company, while supporting our colleagues and clients.

In this interview, Matt reflects on Atwell’s growth in 2025 and the firm’s vision for 2026.

Reflecting on 2025, what moments do you feel best captured the evolution of Atwell’s business this year?

It’s been an exciting year for the Atwell Family of Companies. We’ve experienced significant growth, around a 20 to 30 percent increase in net revenue over the prior year, continuing our steady 15-year trend of double-digit growth. When we set our 2025 business plan, our focus was clear: invest in our people and strengthen our ability to grow alongside our clients. Every major decision we make ties back to two guiding principles: solving client problems and creating opportunities for our team.

One of the most transformative steps we took this year was our integration with Manhard Consulting. From the start, we saw strong alignment in culture, expertise, and client relationships. That partnership has already expanded our data center mission-critical work, deepened our relationships with clients, and enhanced our capabilities in renewable energy design.

We have also continued to prioritize organic growth while expanding our team through strategic hiring and professional development. Personally, having been with Atwell since 1998, it’s fulfilling to see so many of our people grow their careers here.

Atwell has had a monumental year in terms of growth. The Manhard Consulting acquisition was Atwell’s largest ever. What has been the biggest impact of this integration, both culturally and strategically?

The success of the Manhard integration comes down to alignment and cultural belief. Both firms share the same philosophy of supporting people, providing strong leadership, and creating opportunities for growth. That cultural connection made the partnership feel natural from day one.

Don Manhard Jr.’s approach mirrors ours: building lasting client relationships, solving complex challenges, and helping people advance. Together, our teams are expanding into new markets, strengthening technical expertise, and deepening relationships with national clients.

This integration has broadened opportunities for everyone and is a great example of what happens when two like-minded organizations come together. The result is one stronger, unified team with the ability to deliver more, grow faster, and make a greater impact.

As we look to 2026, how do you see Atwell continuing to balance organic growth and strategic acquisitions?

For me, organic growth is where I put most of my energy. It’s the part of the business I’m the most passionate about. I love bringing new talented professionals into the Atwell family. Helping people see how they can grow their careers here while being part of a supportive and innovative culture is incredibly rewarding.

Organic growth will continue to be a key focus for us. It’s simply the best way to grow: by developing people, deepening client relationships, and expanding our technical expertise. We now have more than 2,100 team members, and sustaining that momentum means staying aligned with our clients’ goals. Each year during business planning, we look closely at our clients’ growth strategies to make sure we’re adding resources and capabilities that help them succeed.

With new and expanded offices in Raleigh, Nashville, Reno, Chicago, and Southern California, what lessons have we learned about successful geographic growth?

Everything starts with our people. Our priority is to support the talented staff we already have by giving them the resources, leadership, and tools they need to succeed. We want every team member to have a clear roadmap for growth and the confidence to pursue bigger opportunities. Our focus this year has been on ensuring our teams have the proper leadership backing, technology, and operational support. When our people feel equipped and empowered, they start to think bigger about their clients, the projects they can take on, and the impact they can make. That confidence allows us to pursue larger and more complex projects than ever before.

How has Atwell’s diversification across areas like data centers, industrial onshoring, and energy helped strengthen our position in a changing market?

Major investments today are centered on technology. Companies like OpenAI, Amazon, Meta, and Google are driving data infrastructure and creating opportunities for firms like Atwell.

We’re deeply engaged in mission-critical industries that combine complexity, innovation, and scale. Projects like data centers leverage our full expertise, from land development and utilities to energy infrastructure. Our utility partnerships give us an edge in site selection, grid analysis, and power planning. Our teams also model energy solutions, from natural gas to renewables, optimizing performance and sustainability. What’s most rewarding is seeing our multidisciplinary teams collaborate seamlessly to solve client challenges. That unity and shared purpose define who we are at Atwell.

How does innovation, through tools like Power BI, Chat GPT, or digital project management, support Atwell’s growth and ability to stay ahead of client needs?

We’re using AI tools like Power BI, ChatGPT, and digital project management systems to improve how we manage projects and make real-time decisions about staffing, resources, and budgets. Strong financial management allows us to reinvest in our people and continue growing the firm. Our goal is to give every project manager the insight and tools to operate like the president of their own business, understanding costs, value, and performance at every stage.

Looking ahead, AI will play an even bigger role in bridging workforce gaps and streamlining complex work. By leveraging innovation, we can empower our teams and deliver smarter solutions for clients.

The launch of The Atwell Gives Foundation was a major milestone. What inspired its creation, and what impact do you hope it will have?

The Atwell Gives Foundation was created from our belief that success is about more than growth. It’s about giving back and creating opportunities for others.

Launched this year, the Foundation supports 501(c)(3) organizations focused on STEM education and youth development. Our partnership with Science Olympiad, where we serve as the first title sponsor of its Urban Schools Initiative, is helping expand STEM access for underrepresented students.

By inspiring young people to explore science, technology, engineering, and math, we’re helping shape the next generation of innovators, and perhaps future Atwell team members. It’s a reflection of who we are: driven by purpose, grounded in relationships, and committed to building a brighter future.

What excites you most about where Atwell is headed in 2026?

As we finalize business planning, we’ll target investments where they’ll have the greatest impact, whether that is through hiring, internships, or expanding in key markets.

We expect strong growth in data centers and energy, continued momentum in renewables, and new opportunities in high-growth regions, such as Texas. While residential markets may face some challenges, demand remains steady in the Sunbelt states.

Opportunities aren’t slowing; they’re shifting. We’re focused on deepening relationships with current clients and building relationships with emerging clients and industries that are driving investment in the years to come.

Atwell’s strength has always been in adapting and growing alongside our clients. When we build those relationships and help our partners succeed, we create new opportunities for our teams as well, and that’s what keeps this work meaningful.

News and Insights

Bridging Data and Dirt: Bringing Communities into the AI and Data Center Conversations

The disconnect between digital demand and local impact

I spend a lot of time at the intersection of development and communities. In my role leading communications and stakeholder engagement at Atwell, and as a member of my city’s planning and zoning board, I see how tension around new projects begins long before construction starts. It begins when rumors start circulating, plans are filed, and communities are left to interpret what those potential changes might mean for them.

That tension is becoming increasingly visible when it comes to data centers. These facilities are becoming the backbone of our digital lives. They make it possible to work remotely, stream entertainment, connect across the world and leverage the benefits of artificial intelligence. While their purpose is virtual, their presence is very real. A data center could change the physical landscape, the traffic pattern, and land use in communities. That disconnect between the digital world we rely on and the real-world infrastructure that powers it sits at the heart of many community conversations.

Breaking ground on trust—early, on-site work helps align design with community needs before permitting begins.

Atwell’s role in connecting data and dirt

Atwell is uniquely positioned to help bridge that gap between data and dirt. Our teams align land development, power, permitting, and infrastructure expertise so projects can succeed both technically and socially.

That alignment becomes even more critical when the first public notice is filed and questions start to emerge: Who is building this? How much power will it use? What will it look like? Why here?

The key to answering those questions is early, authentic engagement. When developers take time to listen before they explain, they earn something that cannot be engineered: trust. Communities want to understand, not be persuaded. They want to know how projects fit within their broader vision for growth and how developers are considering the local environment, infrastructure, and quality of life.

A community meeting in action, where open conversations help uncover simple solutions—improving both project design and partnerships with residents.

The value of listening before permitting

From my perspective on a planning board, I have seen how early conversations can change outcomes. When developers engage before submitting permits, they gain valuable insight that can shape design, streamline the review process, and build goodwill.

A single community meeting or open house can reveal simple solutions to potential conflicts, whether it is a question about screening, stormwater, or road access. Those are not just engagement wins but design wins that result in better partnerships with residents.

For data center developers, early engagement also supports larger project goals. These facilities require significant coordination with utilities, municipalities, and landowners. Transparent communication about how energy will be sourced, how water will be managed, and how local benefits will be shared helps establish credibility and predictability. That predictability is a competitive advantage in a market where permitting timelines and public perception can directly affect project viability.

Engagement as infrastructure

At Atwell, we help clients integrate engagement into the same planning and permitting processes that drive engineering and design. We understand that a successful project requires both technical precision and social awareness. When developers think about community engagement as part of their infrastructure, not as an afterthought, they build stronger, more resilient relationships with the people who live and work near their projects.

Data centers will continue to expand as society becomes more digitally dependent. They are not just buildings but a reflection of how our habits and industries have evolved. For that evolution to be sustainable, developers must bridge the gap between data and dirt. That means engaging early, communicating clearly, and respecting the communities that make this transformation possible.

 

About the Author

Danielle Peoples

Project Director for Communications and Stakeholder Engagement

Danielle Peoples is the Project Director for Communications and Stakeholder Engagement. She has more than 13 years of industry experience in strategic engagement, change management, communications, and crisis responses. She is passionate about community engagement and giving back to her community.

News and Insights

Don Manhard shares perspective on the industry, keys to success, and the addition of Manhard to the Atwell team

 

As we welcome the outstanding staff from Manhard Consulting to the Atwell team, we sat down with Don Manhard to learn more about his experiences and vision for the future.

What inspired you to pursue a career in AEC industry?

Two things, really. First, my father was a civil engineer who started his own firm when I was 12 years old, and I grew up working alongside him. That experience gave me an early appreciation for what engineers do and the impact they have on communities.

Second, I discovered I had a natural aptitude for math, and let’s just say English wasn’t my strong suit!  Engineering quickly became my calling, and it was a path that felt both natural and rewarding.

You’ve experienced significant success in this industry, and from your perspective, what skills are critical to being successful?

I’ve always considered myself very competitive whether in sports or in business. Talent helps, but hard work and consistency always win out in the long run. In our industry, success often comes down to going above and beyond for clients and being someone they can count on. Dependability builds trust.

Equally important is thinking ahead, which means finding the right people (people you enjoy working with), anticipating client needs, understanding where the market is headed, and continually improving how services are delivered.

What were the factors that made Atwell a logical fit in bringing the companies together?

It really started with the leadership at Atwell. From the beginning, I could see that these were individuals that my colleagues and I would genuinely enjoy working with. The Atwell team shares our values, work ethic, and commitment to doing things the right way.

Beyond that, the opportunity to join a larger network of professionals with access to new markets, bigger clients, and more complex projects made perfect sense. It wasn’t just about growth; it was about aligning with a company that could elevate what we already do well while offering greater opportunities for our team and clients alike.

What additional opportunities open up now with the Atwell/Manhard integration?

The integration has already opened exciting opportunities. In speaking with many of our clients about the merger, it’s been gratifying to see their enthusiasm, not just for us, but for what this means for them. We can now offer more services in-house, expand our geographic reach, and deliver a broader range of solutions across their markets.

The combination gives our clients a trusted name and familiar faces, now with the added benefit of a larger platform and greater resources. We’re strengthening relationships while creating new avenues for growth and collaboration.

What do you see on the horizon as important industry trends that will drive continued innovation and growth?

While I’ve always been focused on growth, I’ve also learned the importance of growing wisely and making sure we don’t move so fast that we stumble. In this industry, success comes from paying close attention to where market sectors and geographic markets are expanding and where they’re starting to cool.

As an example, a few years ago, distribution centers were booming, but rising interest rates, increased construction costs, and oversaturation caused that market to slow almost overnight. We made the decision to pivot to mission critical and data center work, which continues to show strong, sustained demand. Combined with the addition of Atwell’s land, power, and electrical groups, we are building a platform that’s positioned for long-term success.

To borrow a hockey analogy: don’t skate where the puck is, skate to where it’s going. That mindset is what will continue to drive innovation and opportunity for our firm.

What is a career goal that you’ve set for yourself and what are you most proud of thus far in your journey?

Having built one business, I am now focused on using that expertise and the lessons learned to help Atwell achieve industry dominance, not through reckless expansion, but by instilling the right processes for reasonable, sustained growth that positions us as a market leader. I enjoy the intellectual challenge of the deal-making process, and I hope to spend the final phase of my career guiding and executing the strategic transactions that are vital for Atwell’s future growth.

Working with extremely supportive and talented associates, I am enormously proud to have built a company from a local, 15-person operation into a robust, national firm employing almost 400 people across 14 U.S. locations. This decades-long expansion proved that significant professional success and achieving geographic scale and market presence, is possible without sacrificing personal priorities, as I successfully navigated this growth alongside the growth (and happiness) of my own family.

Where do you look for inspiration?

I’ve been fortunate to have close friends who’ve found success in a wide range of fields –  finance, law, sports, medicine, and private equity to name a few. I often talk with them about what challenges they’re facing, what’s keeping them up at night, where their industries are headed, and what trends they see on the horizon. Those conversations give me fresh perspectives and often spark ideas that help me think differently about our own business and how we can adapt or innovate.

On a more personal level, my wife and two sons keep me inspired and grounded. They each have unique interests outside of AEC, and they’re constantly introducing me to new ideas, technologies, and ways of thinking. They remind me that creativity and curiosity don’t stop at the boundaries of our industry.

As you look forward to 2026, what excites you?

I’m excited about the opportunities that come with full integration. Together we will be able to seamlessly offer clients the complete range of our combined services and deliver even greater value to them. I’m looking forward to identifying and adding key talent, both within our existing markets and in new areas where we see strong potential for growth.

I’m also energized with the prospect of mentoring the next generation of leaders on my team by helping them step into new responsibilities which will drive our continued success into the future.