When looking for a data center site, power availability often leads the way. The process starts by investigating where high-voltage transmission lines run or are planned, and where excess power may be available or can be added relatively easily. While power is a first consideration, it must also combine with other factors as shown in the graphic below:  robust internet connectivity,  access to domestic water at a minimum,  a jurisdictional partner with workable zoning regulations, and available land (a viable site and trade area). Other considerations include, but are not limited to, climate, risk of natural disasters, state incentives, and regulatory environment. The Midwest is an attractive region for data centers because of its cold weather months, where cooling systems are not always necessary and less energy is required for mechanically-assisted cooling systems.

Different data center uses also guide their placement. Edge data centers for quick cloud storage and computing are best located close to population densities, whereas AI and AI training centers can be in more remote locations.

Steps to implementation when a specific community or site is chosen:

Once a potential site is identified, due diligence is conducted. Due diligence builds off of the core factors used in initially identifying the site (availability of fiber, water, and power;   a jurisdictional partner with workable zoning regulations; a viable site and trade area), but goes deeper into those topics and more, like environmental conditions, site plan sketches, and others. Thorough due diligence can take months or even up to a year.

Alongside the due diligence and following the results, there are continued conversations between the proposer and local, regional, and state jurisdictions to discuss the viability of the project from both the developer and the jurisdiction’s point of view.  If both are satisfied, the site moves into preliminary design to get a more defined picture of how things will fit and interact with the surrounding community. The entitlements process also begins at this time, which includes discretionary approvals at the local level, like zoning code or other ordinance changes. This is also where public engagement often occurs, providing an opportunity for the public to ask questions and voice their opinions.

Once entitlements are discussed and secured, the site moves into more detailed design and permitting. Permits can be local, state, and/or federal based on the needs of the site, and some may also have public comment periods. Once permits are secured, construction can begin and must adhere to the conditions of those permits.