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World desk8 min

What to Ask Before Choosing a Data Center Location for Your Business

A data center site must work on the ground, on the grid and on the project’s schedule. Use these questions to screen parcels and compare viable locations.
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Before choosing a data center site, confirm that the exact parcel can receive the power, connectivity, water, approvals and infrastructure your project needs on your schedule. Ask for written, site-specific evidence—not just proximity to a substation or a provider’s service area—then screen out sites that fail essential requirements before comparing cost, resilience and expansion potential.

What should you define before assessing sites?

Start with the facility the business actually needs. ASHRAE’s AI Data Center Energy Performance Framework recommends aligning site selection with workload and density requirements and planning for phased expansion. Those requirements determine whether a site is viable; a location that works for one workload may not suit another.

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  • What workloads will run there, and what power capacity, rack density, latency, security and availability do they require?
  • How much capacity must be ready at opening, and how will demand grow by phase?
  • What are the required energization and occupancy dates, and how much schedule contingency is acceptable?
  • What resilience objectives must the site meet for power, cooling and network systems?
  • Which cooling approaches are being considered, and how do they trade off energy, water, land and equipment?

Record these as minimum requirements, not preferences. They will guide utility requests, engineering studies and the criteria used to compare candidates.

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Can the exact parcel get enough power, on time?

Power is often a feasibility and schedule gate. Ask the utility or other prospective provider to assess the specific parcel and planned load in writing. A nearby substation does not prove that capacity is available, that it can be delivered to the parcel, or that it will be ready by the project date. ASHRAE recommends evaluating utility infrastructure and interconnection feasibility early, including grid constraints and critical equipment lead times.

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  • Who would serve this parcel, and has that provider confirmed the requested load?
  • How much capacity can be delivered, at what voltage, and by what date? What assumptions, queue position or studies does that estimate depend on?
  • Are transmission, substation, transformer, switchgear or other upgrades required? Who must deliver them, who pays, and what are the estimated costs and lead times?
  • Can service scale with each planned phase? What happens if the project load or construction schedule changes?
  • What tariff, demand, minimum-use, collateral or other commercial terms apply?
  • Are backup generation, storage, renewable supply or other alternatives practical and permitted at this location?

Keep preliminary estimates distinct from commitments. The 2022 report Matching Data Center Delivery to Demand: Final Report also recommends checking whether existing infrastructure can support the build and whether upgrades, a new substation or alternative sources may be needed. Its historical supplier lead-time figures should not be treated as current benchmarks.

Will connectivity meet the workload’s needs?

Network requirements depend on what the facility serves. A latency-sensitive service may need to be near users or network hubs; some AI and high-performance-computing workloads may place more weight on power and land capacity. ASHRAE identifies both considerations, so test the candidate against the business’s actual endpoints rather than assuming that a major metro or fiber route is sufficient.

  • Which fiber providers can serve the parcel now, and which have committed construction plans?
  • Are the available routes physically diverse, or do they share ducts, poles, bridges or other failure points?
  • What new construction, easements or rights-of-way are needed, and what is the delivery schedule?
  • What latency to required users, cloud regions, exchanges or other endpoints is measured or contractually supported?
  • Does the workload require proximity to population centers or network hubs?

The 2022 delivery report’s site checklist similarly asks which providers are present, how fiber can be routed and what latency is expected. Validate route diversity and timing rather than relying on a coverage map alone.

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Can the site support the cooling approach and its resource needs?

Cooling, water and energy are linked. Evaluate them together for each candidate and cooling design. ASHRAE recommends accounting for regional energy and water constraints, particularly in water-stressed areas; the 2022 delivery report calls for checking water supply, quality, wastewater and stormwater capacity.

  • Where would water come from, and what legal rights and dependable capacity can the project secure during peak demand and drought conditions?
  • What is the source water’s quality, and is it suitable for the proposed cooling system?
  • For each cooling option, what are the expected water use, energy use, emissions and operating costs?
  • Can local wastewater and stormwater systems handle the project? Will treatment, pumping, storage or discharge approvals be needed?
  • Could recycled water, closed-loop cooling or another lower-impact approach work?
  • What limits apply to freshwater withdrawals, wastewater discharge, noise, emissions or backup-generator use?

For a Canadian project, Innovation, Science and Economic Development Canada’s Responsible Data Centre Development Principles call for minimizing freshwater use and protecting local supplies, with attention to local conditions and environmental performance. They also support considering efficient or closed-loop technologies, waste-heat recovery and impact measurement. These are Canadian government principles, not a statement of universally binding law.

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Is the land physically suitable and resilient?

Check whether the parcel can accommodate the whole site, including infrastructure beyond the data hall. ASHRAE recommends assessing hazards such as temperature, humidity, flooding, seismic activity and wildfire, and allowing space for future buildings, substations and mechanical systems. The delivery report also highlights zoning, soil, contamination, access, easements, security and nearby infrastructure.

  • Is the land large and contiguous enough for buildings, setbacks, substations, cooling equipment, access, construction staging and future phases?
  • What do title records, easements, rights-of-way, existing infrastructure and prior land uses reveal?
  • Could soil conditions, topography, wetlands, protected habitat or contamination affect buildability, cost or schedule?
  • What local flood, wildfire, seismic, extreme-temperature, humidity or storm risks could affect the facility or supporting infrastructure?
  • Can roads support construction traffic and ongoing operations? Could nearby hazards or land uses affect access, security or resilience?
  • Can the facility expand without depending on land or utility capacity that may not remain available?

Assess hazards as a whole-site issue: an exposure can affect the building, utility supply, roads or other infrastructure needed to keep operations running.

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Is there a realistic path through approvals?

Confirm the approval path before buying land or making a major commitment. Determine whether data center use is allowed on the parcel and identify every authority with jurisdiction. ASHRAE recommends early coordination with regulators and stakeholders about zoning, environmental requirements, permitting timelines and concerns including noise, water, energy and land use.

  • Is the proposed use allowed? If not, what rezoning, variance or other entitlement would be required?
  • Which local, regional, state or provincial, and national authorities must review the project?
  • What environmental, building, public or other reviews apply, and what is the critical path?
  • Which approvals could delay construction or energization?
  • What concerns do neighbors and local officials raise about electricity, water, noise, emissions, traffic, land use or visual effects?
  • Are incentives available, what obligations come with them, and could those conditions conflict with the project plan?

NWI Data Facts describes a process that moves from diligence to jurisdictional discussions, entitlements, public engagement, detailed design and permits. Its page says diligence can take months or up to a year; that is a source-specific description, not a universal project duration. Confirm the actual sequence and schedule with the relevant authorities.

What will the site cost to deliver and operate?

Compare the full cost of making the site operational, not just the land price. Separate binding offers from preliminary estimates and identify dependencies that could change the schedule or budget.

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  • What will land acquisition, site preparation, utility and fiber extensions, supporting infrastructure and the chosen cooling approach cost?
  • Which figures are binding, which are estimates, and which depend on future utility, permit or incentive decisions?
  • Are construction labor, specialist contractors, equipment supply and transport routes adequate for the required schedule?
  • What investment, employment or milestone conditions apply to tax or economic-development incentives, and what happens if the project misses them?
  • Could competing projects or supply constraints affect access to power, labor or equipment?

ASHRAE includes workforce and incentives in site planning while emphasizing operational fundamentals and compliance conditions. The 2022 delivery report’s checklist also includes skilled trades, supply chain, tax benefits and project delivery strategy. Treat incentives as conditional inputs, not substitutes for confirmed infrastructure and a viable schedule.

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How should you compare candidate sites?

Use pass/fail gates first, then compare only the sites that pass. The criteria below synthesize technical guidance and site checklists; they are not a published universal scoring model. ASHRAE recommends considering technical, environmental, economic and regulatory criteria together.

Decision area Minimum viability question Evidence to compare
Power Can the required load be delivered by the needed date? Confirmed capacity, delivery date, price and service terms; upgrade scope, responsibility and schedule confidence.
Connectivity Can required endpoints be served at acceptable latency and resilience? Provider availability, route diversity, latency evidence, construction needs and timing.
Cooling and resources Can the proposed cooling design operate within local constraints? Energy and water needs, water rights and supply, wastewater capacity, restrictions and operating costs.
Approvals and schedule Is there a viable entitlement and permitting path? Required reviews, responsible authorities, critical-path approvals and schedule dependencies.
Resilience Are site and regional hazards tolerable for the required operating objective? Hazard exposure, redundancy options, access and recovery needs.
Economics and flexibility Can the project be delivered and operated within its cost envelope? Land and infrastructure costs, operating implications, incentive conditions and expansion capacity.
Community and environment Can local effects be understood and responsibly addressed? Power, water, sound, emissions, traffic and land-use impacts; mitigation, engagement and commitments.

Keep assumptions visible for every candidate. Do not give a speculative incentive or nearby piece of infrastructure the same weight as a verified commitment. In Canada, the federal principles specifically say project proponents should pay costs attributable to their electricity connection and service—including directly attributable generation, transmission, substations and grid upgrades—in proportion to project scale and impact. That is a Canadian policy principle, not a global rule.

What evidence should you have before committing?

Before making an irreversible commitment, assemble a parcel-specific record that distinguishes confirmed facts from estimates and unresolved questions. Obtain current written confirmations from the relevant utility, authorities, land and network providers, and qualified project advisers.

  • A utility assessment that states deliverable capacity, voltage, timing, required upgrades, commercial terms and assumptions.
  • A network assessment covering providers, physical route diversity, latency to required endpoints, construction requirements and schedule.
  • A cooling and resource assessment covering water source and rights, capacity, quality, energy needs, wastewater and stormwater handling, and applicable restrictions.
  • A land and hazard assessment addressing title, easements, physical conditions, prior uses, environmental constraints, access and relevant regional risks.
  • An approval map identifying the authorities, required reviews, public engagement and critical-path decisions.
  • A delivery and operating cost view that identifies estimates, commitments, dependencies, workforce needs, incentive conditions and expansion assumptions.

A location is a sound candidate only when its documented infrastructure, approvals, resources and physical conditions fit the business’s requirements and timeline.

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