Artificial intelligence (AI) is accelerating demand for data centers at a pace few could have predicted just a few years ago. As hyperscale campuses grow larger and more power-intensive, developers face increasing pressure to bring new capacity online as quickly as possible. In today’s market, speed to power determines speed to market.

But the journey from raw land to reliable operations is becoming increasingly complex. Grid constraints have utilities racing to expand transmission infrastructure and generation capacity, while developers simultaneously navigate site selection, utility planning, permitting, engineering, and a growing number of regulatory approvals and community concerns. Each workstream influences the others, and every delay ripples across the project’s critical path.

More than ever, successfully delivering a data center requires coordinating dozens of parallel efforts into a single, integrated program that maintains momentum from site acquisition to energized operations. As the AI race becomes an infrastructure race, the teams best positioned to succeed will be those that understand how every decision influences the path to reliable power.

Building momentum through due diligence

The developers that consistently move projects forward aren’t necessarily the ones that acquire sites the fastest; they’re the ones that evaluate them thoroughly. Comprehensive due diligence helps uncover everything from easements, utility constraints, and power availability to environmental needs, community sentiment, and long-term expansion opportunities.

The goal is more than simply reducing risk, it’s about gaining momentum and saving time. Every constraint identified before acquisition or design is an opportunity to begin planning sooner and keep the critical path moving forward. By enabling multiple workstreams to advance together, due diligence becomes the foundation for faster, more coordinated project delivery.

Aligning utilities and approvals through early engagement

Finding a viable site is only the beginning. Securing reliable power and obtaining local approvals are two of the biggest drivers of a project’s schedule, and they’re deeply interconnected. Beyond available grid capacity or water supply, developers must navigate an increasingly complex entitlement process before utilities can move projects forward. In many cases, utility providers require key local approvals before executing service agreements or committing to infrastructure investments.

That challenge has only grown as hyperscale data centers become larger and more visible. Projects that once moved through local approvals with relatively little attention now face increased public scrutiny, more extensive review processes, and, in some markets, temporary development moratoriums as local governments evaluate the long-term impacts and community benefits.

That doesn’t mean progress has to wait. Early engagement allows project teams to understand the utility requirements, coordinate infrastructure planning, explore alternative power strategies, and identify constraints while public engagement and entitlements continue.

Bridging the gap to reliable power

AI has fundamentally changed the scale of power required for data center development. Not long ago, 10- to 20-megawatt facilities were common. Today, campuses are increasingly planned for hundreds of megawatts, with some exceeding a gigawatt of demand—roughly the output of a nuclear power plant. To deliver that level of power, connecting to the grid is still the most reliable and scalable solution.

Yet even after selecting a site, navigating permitting and approvals, and advancing utility coordination, it can still take years for permanent grid capacity to become available. Utilities don’t move at the same pace as AI demand, which forces us to think strategically about how to reach operations while long-term transmission and generation projects are completed.

For many developers, this means evaluating alternative power strategies such as on-site natural gas generation, battery storage, or renewable sources like wind and solar. While each of these solutions can also involve long lead times and their own permitting and approval processes, they provide benefits beyond accelerating project schedules. They also strengthen long-term power resilience by providing additional layers of redundancy and operational flexibility.

Hyperscale facilities are engineered around what’s known as “four nines” reliability, meaning 99.99% uptime, or less than one hour of allowable downtime over an entire year. They need to keep running during scheduled maintenance and repairs, and they can’t go offline if an unexpected power disruption occurs. So, in addition to bridging the gap until permanent grid connections, alternative power sources become a critical component of long-term operational reliability in a data center’s power strategy.

As power demands continue to grow, securing reliable and redundant sources is an ongoing consideration throughout the development lifecycle. Every decision, from site selection and due diligence to engineering, permitting, and construction, influences the path to energized operations. Keeping those decisions aligned is what ultimately separates projects that maintain momentum from those that fall behind schedule.

Program management as a competitive advantage

Connecting to reliable power is a thread that runs through every phase of development. Decisions made during due diligence influence utility strategy. Utility timelines shape engineering and permitting. Public approvals affect service agreements. Every discipline influences the path to energized operations, making coordination just as critical as technical expertise.

Few developers have the internal bandwidth to coordinate every consultant, utility, permitting agency, and stakeholder across multiple campuses. As data centers continue to expand in scale and complexity, success is increasingly determined by the ability to coordinate all disciplines effectively to maintain momentum across the development program.

Just as importantly, experienced teams understand the local landscape—from permitting timelines and utility requirements to labor markets and community dynamics. Sometimes the most valuable insight comes from knowing who to call or recognizing where a planned transmission upgrade could reshape the project schedule.

That’s where program management creates the greatest value. It combines technical expertise, local knowledge, and disciplined coordination to identify issues early, maintain momentum, and give developers the confidence to focus on delivering the next generation of AI infrastructure.

The path forward

Developing the infrastructure to support the new generation of data centers has become one of the defining challenges of the AI era. As power demands continue to grow and project timelines become increasingly compressed, the path from raw land to energized operations will require closer coordination than ever before.

Developers that embrace an integrated, programmatic approach won’t just be better positioned to overcome today’s challenges, they’ll be better prepared for what comes next. As the AI race continues to reshape infrastructure development, demand for power will continue to grow and regulatory environments will continue to evolve. The ability to efficiently move projects from raw land to reliable power will remain a defining competitive advantage for developers that can maintain momentum and coordinate every phase of the development lifecycle.

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Related Digital is advancing a $16 billion hyperscale data center campus in Saline Township, Michigan, developed for Oracle and marking the largest capital investment in the state’s history. The more than 1,000-megawatt campus will help expand advanced artificial intelligence and cloud computing capabilities for Oracle and Open AI.

Atwell is supporting the project with concept planning, due diligence, land surveying, civil engineering, wetland permitting, landscape architecture, and construction management services. Our team is helping move this large-scale development from early planning through execution while supporting the infrastructure needed for long-term growth and innovation.

“Projects of this scale require strong collaboration and thoughtful planning from day one,” said Eric Lord, Vice President at Atwell. “We’re excited to help deliver the infrastructure needed to support long-term innovation and growth in Michigan.”

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The data center development boom is unlike anything the infrastructure industry has seen in decades. AI adoption has dramatically accelerated demand for power, and developers are racing to secure land, permits, and utility capacity at a pace the grid and broader utility ecosystem were never designed to support. The result is a complex challenge that is forcing developers to rethink not just where they build, but how they power their facilities from the moment they break ground.

The tension is straightforward: developers want power now, and the grid can’t deliver it fast enough. Understanding why and what options exist in the interim is essential for any developer.

The grid constraint is reshaping development strategy

Connecting to the utility grid remains the most cost-effective long-term power solution for data centers. Grid power, purchased at commercial or industrial rates, is significantly cheaper than building and maintaining on-site generation. The problem is the timeline. Depending on the market, a meaningful grid connection can take several years when you factor in land acquisition, infrastructure planning, permitting, and construction. For a developer who wants to be operational “tomorrow,” that timeline is untenable.

Compounding the delay is a significant community relations challenge for utilities and developers. In many states and municipalities, data centers have become a flashpoint for community opposition, not necessarily because of the facilities themselves, but because of misperceptions around electricity rates and environmental impact. Many residents fear that data centers will drive up their electricity bills, even though developers typically purchase power at separate commercial rates and do not burden the residential rate base. Utilities are caught between pursuing large commercial load growth opportunities and navigating public utility commission scrutiny, ratepayer concerns, and political pressure around infrastructure expansion. Water consumption has also become a growing point of public scrutiny, particularly in water-stressed regions, even as newer facilities increasingly rely on closed-loop and more efficient cooling technologies. The perception gap between environmental impact and community concern remains wide, adding another layer of complexity to development projects.

Bridge power: A growing menu of options

Given the grid access timeline, a wide range of “behind-the-meter” and temporary power solutions have emerged. These are not new concepts, but the scale and urgency of data center demand have elevated them into mainstream planning conversations. Here is where the market currently stands:

Fuel cells. Natural gas-powered fuel cells have become one of the more prominent bridge solutions. Companies have established a meaningful foothold in the data center market. Fuel cells offer a relatively clean, scalable power source, and while they come at a cost premium over grid power, they are increasingly viewed as a viable interim or supplementary solution.

Gas turbines. Gas-fired turbines have historically been a go-to for on-site power generation, but the market is currently constrained. Turbine manufacturers are facing significant backlogs driven by simultaneous demand from data centers, power generation facilities, and natural gas compressor stations. Developers who want turbines need to place orders and commit capital well in advance, with delivery timelines that rival the grid itself.

Battery storage. Battery energy storage systems are an increasingly common component of the bridge power toolkit, often deployed in combination with other generation sources. They provide flexibility and resiliency, though they are not often a standalone solution for the sustained power loads that large-scale data centers require.

Diesel and dual-fuel generators. Diesel and propane generators remain in the mix as backup and supplementary sources. Their capacity limitations, however, make them better suited to redundancy roles than primary power for hyperscale or large regional facilities.

Wind and solar. Renewable generation is viable in the right circumstances, but the land footprint required to generate meaningful megawatts can be substantial. Developers who can integrate a solar or wind component into a larger site plan may find these options increasingly attractive, particularly as permitting for smaller distributed sites becomes more common.

The decision framework: Cost, speed, and long-term fit

For most developers, the conversation around bridge power comes down to a tradeoff: is the cost of a temporary or permanent behind-the-meter solution worth it compared to waiting for grid access? Well-capitalized developers like large hyperscalers and institutional players often have the balance sheet to pursue either path. The decision becomes more nuanced for mid-market developers working with tighter margins.

The key variables are rarely just financial. Speed to market, site-specific constraints, local regulatory dynamics, and the developer’s long-term operational strategy all factor in. A developer with a site near an existing substation faces fundamentally different considerations than one in a greenfield location with no nearby infrastructure. Getting the analysis right from the outset before land is committed or capital is deployed is where strategic planning makes the biggest difference.

Looking ahead at a market in transition

The current pace of data center development is extraordinary, but it will likely moderate somewhat. The land-acquisition frenzy of the past 18 to 24 months is beginning to encounter the natural limits of grid capacity, equipment supply chains, and public acceptance. The market is not stopping as AI adoption has created a demand curve that is not going to reverse but it is maturing.

One meaningful shift on the horizon is a move toward smaller, more efficient facilities. As chip technology advances, data centers will be able to do more with less space and less power. A portfolio of five 20-acre facilities may ultimately replace the need for a single 100-acre hyperscale campus. That model is both easier to permit and more resilient from an infrastructure standpoint. The underlying demand for power will continue to grow; the physical footprint required to meet it may not grow at the same rate.

The importance of creating a strategy to meet the needs of today

Navigating the intersection of land, power, permitting, and infrastructure planning requires an integrated strategy from the outset.

The most effective engagements begin early, well before a site is selected, before a power strategy is committed, and before regulatory exposure is locked in. Our role as a strategic partner is to help developers understand the full landscape of options, stress-test their assumptions, and build a plan that is grounded in what is actually achievable in a given market and timeline.

The challenges shaping data center development today are not going away. But for developers who approach them with the right team and the right plan, they are navigable.

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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.

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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.

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The rapid growth of cloud computing, AI, and digital services has made data centers some of the most complex and time-sensitive projects in the built environment. Yet many projects do not slow down because of a single technical challenge. They stall because critical infrastructure elements move on different timelines and fail to align early.

Land, power, water, and connectivity each carry their own constraints, regulatory paths, and approval cycles. A site may appear viable on paper, but if even one of these systems lags, the entire project can be delayed or reshaped at significant cost. In today’s competitive data center market, success depends less on any single solution and more on how well these infrastructure systems are coordinated from the start.

Developers who focus on early alignment are better positioned to secure sites, manage risk, and deliver facilities that can scale with long-term demand.

Coordinating infrastructure from site selection through delivery

Atwell partners with data center developers nationwide to help align infrastructure systems from site selection through commissioning. Our teams understand that speed in today’s market is driven by early clarity and coordinated decision-making, not last-minute acceleration.

By integrating land development, environmental services, power engineering, water planning, and connectivity support, we reduce handoffs between disciplines and identify constraints earlier in the project lifecycle. This coordinated approach supports faster decisions, more predictable permitting, and smoother execution as projects move from concept to operation.

Atwell’s integrated delivery model is built around four core infrastructure systems: land, power, water, and connectivity. Aligning these systems early helps developers move forward with confidence while reducing uncertainty as projects scale.

Land readiness as the foundation for alignment

Land is often the first system assessed and one of the most underestimated. Zoning, entitlements, environmental conditions, and geotechnical factors all influence whether infrastructure can be delivered on schedule. Misalignment at this stage can ripple through power, water, and connectivity planning later.

Atwell supports confident site selection through integrated land development services. Our teams conduct feasibility studies and geographic information system (GIS) analysis, manage zoning and entitlement processes, and coordinate permitting with local and state agencies. Environmental and geotechnical evaluations are incorporated early to identify constraints before they affect downstream infrastructure decisions.

This proactive approach to land readiness helps establish a realistic development timeline and reduces the risk of costly surprises as projects advance.

Power planning on the utility clock

Power availability is often the longest and least flexible timeline in data center development. Utility capacity, interconnection requirements, and regulatory approvals must align with development schedules, yet these processes frequently extend beyond typical real estate timelines.

Atwell helps developers coordinate power planning early by integrating utility engagement, interconnection studies, and electrical infrastructure design. Our in-house power engineering teams, working alongside Strategic Construction Solutions, support engineering, procurement, and construction for substations and high-voltage systems.

By addressing power strategy early, including renewable energy integration, microgrids, and backup systems, developers gain clearer visibility into capacity, cost, and long-term resilience. This alignment helps prevent late-stage redesigns and supports continuous operations as demand grows.

Water and cooling strategies aligned with local realities

Water use and cooling strategies are increasingly central to data center planning, particularly in regions facing resource constraints or heightened public scrutiny. Availability, permitting, and sustainability expectations all influence how water systems must be designed and documented.

Atwell works with developers to align water and cooling solutions with local conditions and regulatory frameworks. Our teams support water rights and permitting, design cooling approaches such as closed-loop, immersion, and reclaimed water systems, and assist with environmental, social, and governance reporting, including water usage effectiveness metrics.

By addressing water strategy early, especially in water-constrained regions, developers can balance performance, sustainability goals, and community expectations while reducing approval risk.

Connectivity planned as core infrastructure, not an afterthought

Fiber connectivity shapes how a data center performs from the moment it comes online. Latency, redundancy, and carrier diversity are difficult and expensive to correct if not addressed during site planning.

Atwell integrates fiber planning directly into site development to support reliable connectivity from the outset. Using geographic information system analysis and outside plant design, our teams evaluate routes, map existing infrastructure, and manage permitting. From carrier diversity planning to edge market connectivity, we help developers plan network infrastructure that aligns with both immediate needs and long-term growth.

Early coordination of connectivity helps avoid constraints that can limit scalability and operational flexibility later.

Aligning infrastructure to support what’s next

With more than 2,100 professionals across 77 offices nationwide, Atwell brings national reach paired with local understanding of regulatory environments and regional infrastructure challenges. Our teams prioritize safety, quality, and schedule while working collaboratively with clients, utilities, and public agencies.

As demand for digital infrastructure continues to grow, the ability to align land, power, water, and connectivity early will continue to separate projects that move forward from those that stall. Atwell remains focused on helping data center developers solve the infrastructure alignment problem and deliver resilient systems that support the digital economy for decades to come.

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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.

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.

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.

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The demand for digital infrastructure is accelerating at a pace few could have predicted even a decade ago, and data centers sit at the heart of this growth. The success of data center projects depends on how developers anticipate and address two challenges from the very start: access to reliable power and the complexities of regulatory requirements.

These issues are not always the most visible during early planning, but they are almost always the ones that determine whether a project advances smoothly or stalls. Atwell’s integrated approach of combining utility relationships, environmental expertise, and regulatory navigation under one roof gives developers the strategic advantage they need to stay ahead of the data center surge.

Power: Why planning for power and energy comes first

A data center is only as strong as the energy source that supports it. Power is the lifeline of these facilities, and without a robust energy plan, even the most promising sites can quickly fall short.

What makes this challenging is that every region has its own limitations. Some areas face tight transmission capacity, while others may offer ample power today but little room for future expansion. Pricing structures and long-term availability also vary widely. For organizations planning a data center, the question isn’t just, “Is there power now?” but rather, “Will there still be enough 10 years from now?”

The best outcomes I’ve seen come from approaching energy planning as part of the earliest feasibility studies. That means working with utilities, engineers, and planners to understand not just current supply but also the trajectory of regional growth. Because Atwell has relationships with some of the top utility companies both nationally and regionally, we are able to properly plan for energy as soon as possible when it comes to data center development. When clients take this type of long view, they’re far less likely to face surprises down the road. Our early involvement doesn’t just reduce risk; it compresses project timelines by identifying solutions before they become problems or delays.

Policy: Navigating the regulatory maze with an early strategy

If power is the lifeline of a data center, then regulatory approvals are the gatekeepers. Zoning, permitting, environmental reviews, and utility coordination all need to line up before construction can begin. Each of these steps is governed by a mix of local, state, and federal rules, and none of them can be skipped.

This process is rarely simple. Timelines are often longer than expected, and requirements can shift with new policy priorities. Sustainability goals, for instance, are shaping regulations in ways that were not on the radar a few years ago. Communities are also asking tougher questions about how data centers fit into their long-term vision for growth.  Community opposition has and can reroute projects, and this opposition can extend across neighborhoods and state lines quickly. Navigating regulations in the future will involve community engagement as well as regulatory.

The lesson here is that regulatory planning is not something to leave until after a site is chosen; it has to be part of the initial strategy. Understanding the regulatory climate early, from who the decision-makers are to what the community values to where the pressure points lie, helps reduce risk and build momentum.

Place and partnership: Where local knowledge and relationships become a competitive advantage

Both power and regulatory issues are deeply tied to place, but they’re also tied to people. That’s where partnership becomes the fourth critical element—and where Atwell’s approach creates real differentiation.

Communities have their own networks of decision-makers. A permitting path that looks straightforward on paper may be complicated in practice due to conflicts, infrastructure constraints, or environmental sensitivities. On the flip side, opportunities sometimes exist that aren’t obvious to those unfamiliar with the area, such as planned utility upgrades or community initiatives that align with data center investment.

What I’ve found consistently is that our existing relationships, whether with utility executives, regulatory officials, or community leaders, often determine project velocity more than technical specifications. When we’re already a trusted voice in those conversations, our clients benefit from shortened timelines, proactive problem-solving, and access to information that isn’t always publicly available.

This is about being seen as a strategic partner rather than another consultant, not just having contacts. Our clients benefit from relationships we’ve built over decades, local knowledge that can’t be Googled, and the kind of credibility that comes from a track record of successful projects in the region.

The data center industry moves too quickly to build relationships from scratch on every project. When we can leverage existing trust and local knowledge, we extend our client’s reach into communities where they need to succeed.

Staying ahead of the curve in data center development

The data center industry is exploding. The challenges of site selection, power availability, and regulatory approval are becoming more complex as demand increases. That makes it more important than ever to focus on the fundamentals: securing reliable power, navigating regulations with foresight, and understanding the local context. These are not just technical details—they are the foundation on which every successful data center rests. I foresee the following as necessary factors to have in place to keep up with the pace of the industry:

1. Hyper-scalers will need speed and scale.
2. Enterprise clients will need reliability and compliance.
3. Edge operators will need local knowledge and rapid deployment.
4. Land developers will need the flexibility to position themselves for any of the above.

As the industry evolves, so will the strategies required to deliver these resilient and future-ready facilities. But no matter what changes lie ahead, the three cornerstones—power, regulation, and local knowledge—will continue to shape the path forward.

Learn more about Atwell’s capabilities nationally and locally in mission critical land development consulting here.

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By Courtney Schmidt

The data center boom is well underway, but all expectations point to an even greater need for new facilities and significant growth in capacity in the coming years and beyond. According to research by McKinsey & Company, global demand for data center capacity is expected to grow at an annual rate of 19% to 22% through 2030. Even at that pace, their analysis suggests the supply of power may fall significantly short of demand.

One of the primary challenges that could limit the acceleration needed to support demand is the availability of appropriate land for data center development within proximity to available power load. The process of land identification and qualification is not as simple as finding open acreage. Many factors play a critical role in selecting and acquiring the right location.

Key considerations in land acquisition

“Every developer will want to identify a location that has available power and fiber. Those are the two biggest things that are universally desired,” said Courney Schmidt, Vice President at Atwell. “Other considerations include a stable climate with lower natural disaster risk, scalability, and a positive regulatory environment in a region helps.”

Developers should think through the following when considering a location for a data center:

• Defining requirements and infrastructure: What is needed in terms of capacity, connectivity, and footprint
• Location, location, location: Zoning requirements and regulatory requirements play a key role in the consideration process
• Environmental impact considerations: Are there advantages or risks in the terrain of the particular location? What will be needed for any environmental impact studies or permits?
• Title or survey issues: Are there any barriers or concerns that can be identified early in the process? Are there title issues that could present challenges?
• Evaluation of the surrounding area: Is there talent available to support the project? Are there any risks that pose a threat to the success of the project? (ex. hazardous materials nearby, surrounding traffic issues, flooding/severe weather potential, etc.)

Regional differences play a role as well. Markets that have seen strong interest and growth from a data center perspective include Michigan, Ohio, Georgia, and Texas. Some states in the U.S. have been more aggressive in terms of seeking development and offering incentives or regulation that makes land use for data centers more appealing to developers.

Shift toward land banking and speculative acquisition

To get ahead of accelerating demand, many developers are engaging in land banking by purchasing and holding sites for future use well before development is imminent. This approach allows for strategic positioning in high-demand regions where infrastructure expansion is anticipated. In some cases, land is being acquired speculatively before zoning approvals, utility access, or entitlements are secured. While this introduces a greater degree of risk, it also offers a significant first-mover advantage in emerging or underserved markets.

The Atwell advantage

Atwell can work effectively in multiple ways to assess and connect the pieces in a data center development puzzle.

A developer may come to the company with an expressed need and a goal of looking at viable sites within a particular region. They have a reason they want to be there which might be because of the availability of power or positive interest in adding development projects there. Atwell’s land acquisition teams serve as strategic partners in identifying and evaluating land opportunities, leveraging our nationwide presence and local market expertise. We provide critical analyses throughout the acquisition process, including environmental assessments, power availability, and risk mitigation to help clients select the optimal site for their project.

In some cases, our client is the landowner, often a residential or commercial developer with a portfolio of properties acquired over time. They’re seeking to unlock the highest value from their holdings but may be uncertain if data center development is a viable or optimal path.

Atwell brings strategic insight to help assess current market conditions, infrastructure alignment, and risk factors to determine whether data center deployment is a compelling and competitive use for their land. “Our advantage at Atwell is that we have our three business lines, traditional land development, power and energy, plus oil and gas, and those are the major strains for the data center industry today. We have the ability to not just be an advisor on land, but also to analyze the viability of developing on that land from a power perspective. It’s a uniqueness that we can bring to the table for clients in this market,” said Schmidt. “We also have a bigger picture view and set of experiences that can support clients through their entire journey. We lead with power design and engineering, electrical or natural gas, with a focus on speed, reliability, and integration. From concept through execution, we manage the critical power elements that keep data center projects moving.”

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