The Tool Desk
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What should approval establish?
Approval should be based on the project as proposed: its location, design, expected load, cooling system, construction plan and related infrastructure. A data center on one site may face different utility constraints, environmental reviews and community effects from a similar facility elsewhere. The approval record should make clear what is supported by completed studies, what remains a forecast, which decisions are still pending and who is responsible for meeting each condition.
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Ask sponsors to distinguish binding commitments from projections. A projected tax contribution, hiring figure or completion date is not the same as an obligation with a defined measure, deadline, reporting method and remedy for noncompliance. Likewise, a statement that utilities or agencies will address an issue later does not establish that the necessary capacity, permits or funding will be available.
The following questions are a practical diligence framework, not a universal statutory checklist. EPA’s site-feasibility and development guidance concerns broader project-development and renewable-energy reuse frameworks; its general considerations are useful, but they do not replace the laws and procedures applicable to a particular data center.
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1. Is the site actually feasible?
Start with the land and everything that must happen before construction. Request a developable-area map, constraints survey, site history, contamination review, access study and utility study. Ask the sponsor to identify areas that cannot be built on, easements, physical constraints, environmental sensitivities and any known cleanup work.
Ask for the evidence behind the site plan
- Which parcels and areas are included, and what is the confirmed developable area?
- What site-history and environmental reviews have been completed? Do they identify contamination, prior uses, cleanup obligations or unresolved liability?
- What access improvements are required for construction traffic, deliveries and emergency vehicles?
- What infrastructure must reach the site, and are there physical or permitting impediments along the route?
- What schedule includes permitting, site preparation, any cleanup and construction dependencies?
EPA’s site-feasibility framework identifies environmental conditions, permitting, utility access, technology and construction costs, local energy prices and available incentives as relevant inputs. It says feasibility work should produce site analysis, a confirmed developable area, infrastructure study, cleanup information and information on available incentives. A formerly used or contaminated property may add cleanup costs, liability and schedule uncertainty; do not treat it as construction-ready until those issues have been investigated and assigned.
When several sites or designs are under consideration, compare them on the same assumptions. Include developable area, access, cleanup exposure, utility routes, construction risk and local costs. A site that appears attractive because of land price or incentives may still be less feasible if major infrastructure or remediation is unresolved.
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Request a load forecast by project phase and supporting evidence from the relevant utility or grid operator. The key question is not simply whether electricity lines are nearby: it is whether the required capacity can be delivered to this project on its proposed schedule, through a defined interconnection path, with identified upgrades and costs.
Require a power and interconnection record
- What is the forecast load for each phase, and when does each phase need service?
- Has the utility or grid operator confirmed the proposed service path and the status of the request? What remains subject to study or approval?
- What substations, distribution facilities, transmission lines or other upgrades are required?
- Who pays for each upgrade, and how are costs allocated if the scope or schedule changes?
- What milestones control the expected in-service date, and what is the contingency if an upgrade is delayed?
- Does the plan depend on new generation or transmission? What happens if that resource is late or unavailable?
EPA’s feasibility guidance notes that proximity to electricity infrastructure—and impediments between a site and the nearest transmission or distribution line—can significantly affect cost and timing. Proximity alone is therefore not proof of deliverable capacity. Seek the underlying utility evidence, upgrade scope, schedule assumptions and cost allocation rather than relying on a general statement that the project is near a line.
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If the proposal includes islanded generation
Ask what generation technology is proposed, what fuel it requires, how fuel will be delivered, what emissions it produces, what backup arrangements exist and which permits apply. Request a clear explanation of how the plant would operate during normal service, grid outages and transitions between operating modes; those configurations can affect both reliability and regulatory review.
On July 27, 2026, EPA announced guidance stating that the Clean Air Act Acid Rain Program does not apply to power-generation facilities that are not connected to the public grid. That statement is limited to the Acid Rain Program and the described off-grid configuration. It does not establish that an islanded facility is exempt from other federal, state or local air, environmental, land-use or safety requirements.
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3. What are the water, wastewater and stormwater consequences?
Ask for a project-specific water balance, not a generic claim that water needs will be small or manageable. The analysis should describe expected demand under ordinary and peak conditions, the assumed cooling design, the water source and legal availability, and how the project’s demand changes across phases or operating conditions.
Questions for the water plan
- What are projected water withdrawals or purchases during normal and peak operations, and what assumptions produce those estimates?
- Which cooling system is assumed? How would a different design change water demand, discharge or energy use?
- Where will water come from, and what evidence establishes that the source can legally and reliably serve the project?
- How will wastewater be handled, treated and discharged, and which approvals or capacity agreements are required?
- What stormwater controls are proposed for construction and operation, and how will performance be monitored?
- What restrictions or operating changes apply during drought or other supply constraints?
- How could withdrawals or discharges affect other users, sensitive watersheds or nearby water resources?
The official sources reviewed do not establish a defensible universal data-center water-use figure or approval threshold. A number without the project’s cooling assumptions, operating conditions, source and measurement basis can mislead. Require project-specific estimates and, where scarcity or sensitive watersheds make it relevant, monitoring, public reporting and a contingency plan. Pennsylvania’s GRID standards are one state-specific example of additional collaboration and mitigation commitments for some projects in sensitive watersheds; they do not establish a rule for other states.
4. Which approvals apply, and what is on the critical path?
Ask for a location-specific permit matrix. For every anticipated approval, it should identify the responsible agency, application evidence, decision point, dependencies, schedule assumption and available appeal path. Require the sponsor to distinguish approvals already obtained from applications in progress and approvals that have not yet been filed.
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Depending on the site and design, reviews may involve local zoning and land use, construction, air, water, stormwater, species, historic preservation or other environmental matters. EPA notes that local land-use and zoning reviews are common and that state or county reviews may also be needed depending on the jurisdiction. The exact list cannot be inferred from the words “data center”: it depends on the location, design, infrastructure and applicable rules.
Test schedule dependencies, not just dates
Ask which permits or utility milestones must occur before site work, construction, energization or operation can proceed. A schedule should show dependencies and identify what could delay a later step. If an approval is contingent on another agency decision, utility upgrade or cleanup, ask what happens if that prerequisite changes or arrives late.
A federal environmental impact statement (EIS) is not automatic for every data center. The Department of Energy describes an EIS as required when the agency determines a proposed action will have a reasonably foreseeable significant effect on the human environment. Ask which federal actions are actually proposed and whether the responsible agency has made a significance determination; do not infer an EIS requirement solely from the project type.
If associated transmission is proposed
Ask whether any related transmission project qualifies for the Department of Energy’s Coordinated Interagency Transmission Authorizations and Permits Program, or CITAP. DOE describes pre-application documentation, coordinated federal review, project-specific schedules and a public participation plan for qualifying transmission projects. CITAP has a defined scope: its schedule and requirements should not be treated as governing every data center or every power connection.
5. What burdens and benefits fall on nearby communities?
Ask for quantified construction and operating effects, including noise, traffic, emissions, land and habitat disturbance, water demand and emergency-response needs. The analysis should identify who is affected, when impacts are expected and how they will be measured. Where estimates depend on assumptions, the sponsor should state those assumptions rather than present a single figure as certain.
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Make mitigation specific and accountable
For each significant impact, ask what mitigation is promised, when it will be in place, who will monitor it, how results will be reported and who is responsible for remediation if performance falls short. A useful commitment names the responsible party and sets a measurable standard or milestone; phrases such as “as needed” or “where feasible” are difficult to evaluate unless the approval also explains how they will be applied.
Identify affected neighborhoods, Tribal Nations, local governments and other stakeholders early enough for their input to matter. Ask how comments can change the project design, operating conditions or mitigation plan. DOE’s CITAP guidance requires a participation plan for qualifying transmission applicants and encourages early engagement, but that program-specific guidance is not a general participation rule for all data centers. Pennsylvania’s GRID program is another state-specific example: it links permit evaluation to local approval and environmental, community, economic and transparency commitments.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.6. Do the economic claims account for all costs?
Request a full project cost model that shows who pays for generation, substations, transmission, water and sewer upgrades, road work, incentives and long-term operations. Separate private costs from public expenditures and distinguish costs the project sponsor has accepted from costs that may fall on ratepayers, taxpayers or other customers.
Examine claimed public revenues alongside the type, duration and quality of employment. Ask the sponsor to separate temporary construction employment from durable operating jobs, describe workforce-development commitments and identify how any local benefits will be measured. If tax incentives or other public support are proposed, ask what conditions attach to them and what happens if promised outcomes are not achieved.
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7. Is the proposal mature enough to approve?
Before a decision, request a single, organized evidence package. It should let decision-makers trace major claims to supporting studies, identify unresolved conditions and see who owns each next step. The package should include:
- Site plan, developable-area analysis, constraints survey and site-history or contamination information.
- Phased load forecast, utility or grid-operator evidence, interconnection path, upgrade plan, schedule and cost allocation.
- Project water balance, cooling assumptions, source and wastewater arrangements, stormwater design and relevant contingency measures.
- Location-specific permit matrix, including agency, dependencies, decision points and schedule assumptions.
- Impact analyses, alternatives considered and proposed mitigation with monitoring and reporting arrangements.
- Cost model covering infrastructure, public support and long-term obligations, alongside measurable economic commitments.
- Public-engagement record and a list of unresolved questions, each with a named owner and decision milestone.
Separate what can be decided now from what depends on later permits, utility milestones or completed studies. If approval is conditional, write each condition as an obligation with a responsible party, deadline or milestone, verification method and remedy where appropriate. These steps synthesize general feasibility and permitting principles; they are not a universal statutory checklist.
How to compare alternative sites or designs
Use a common set of assumptions for every alternative. A comparison is meaningful only if each option is evaluated against the same project scale, schedule and operating expectations. Label estimates and distinguish a binding commitment from a forecast.
| Comparison area | What to compare | Evidence to request |
|---|---|---|
| Power | Deliverable capacity, upgrade scope, cost and timing | Phased load forecast, utility or grid-operator evidence, interconnection path and cost allocation |
| Water | Source, demand, drought resilience and discharge | Project water balance, cooling assumptions, legal availability and wastewater arrangements |
| Permitting and schedule | Required approvals, dependencies and critical milestones | Site-specific permit matrix and schedule with assumptions |
| Environmental and community effects | Noise, traffic, emissions, habitat, water and emergency needs | Impact analyses, stakeholder record and specific mitigation commitments |
| Site and construction risk | Cleanup, access, developable area and construction constraints | Site-history review, constraints survey, access and infrastructure studies |
| Lifecycle costs and local benefits | Infrastructure costs, incentives, public exposure and durable benefits | Cost model and measurable, time-bound commitments with reporting |
What not to assume from a headline figure or label
There is no defensible cross-project statistic in the official sources reviewed for typical water use, net local economic benefit or data-center approval duration. Do not use a single number as a substitute for project-specific evidence, and do not treat a proposed schedule as a generally expected approval timeline.
Executive Order 14318 defines a “Data Center Project,” for purposes of that order, as a facility requiring greater than 100 megawatts (MW) of new load dedicated to specified AI activities. That is an order-specific definition, not a general threshold for data-center approval. A project’s permitting obligations, feasibility or impacts cannot be determined from that figure alone.
Finally, a transmission process, state program or federal review applies only within its stated scope. DOE’s CITAP applies to qualifying transmission projects; Pennsylvania’s GRID standards are a state-specific framework; an EIS depends on the responsible agency’s significant-effect determination. Confirm the rules for the actual location, utility, proposed power and cooling systems, and current agency requirements.
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