By James Hall, Executive Vice President of Special Projects, Atwell, LLC
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:
- Hyper-scalers will need speed and scale.
- Enterprise clients will need reliability and compliance.
- Edge operators will need local knowledge and rapid deployment.
- 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.
