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The best location for an AI GPU facility is the site that can receive the required power, cooling, network capacity, permits, and expansion infrastructure on your schedule—not simply the site nearest a transmission line or users. Start by defining the workload, GPU scale, latency tolerance, resilience target, and growth horizon. Then verify deliverable electrical capacity and interconnection milestones with the utility, test cooling and water assumptions against rack density and climate, map diverse network routes, quantify hazards, and build a jurisdiction-specific permitting and community plan. Compare evidence by project phase rather than assigning universal weights: a latency-optimized site can fail on power delivery, while a remote training site can still fail without robust telecoms, water, or approvals.
What should you define before comparing locations?
Write a one-page technical brief before contacting utilities or brokers. Every later site score depends on these requirements.
Workload type and data geography
- Training: long-running, highly parallel jobs can tolerate greater distance from end users when energy, telecommunications, and essential utilities are dependable.
- Inference: interactive services may require predictable user-to-GPU latency, so proximity to customers, data sources, or an existing edge footprint can dominate.
- Mixed workloads: separate latency-sensitive inference capacity from batch training instead of averaging them into one vague requirement.
The Australian Government’s September 2026 consultation describes this distinction while warning that customer needs, network access, energy, water, construction, workforce, and grid timing all remain relevant. Treat its observations as Australian policy context, not a universal rule for other jurisdictions: Getting it right: Building AI infrastructure that works for Australia.
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Compute scale and density
State the initial IT load, expected rack density, number of halls, and expansion stages. GPU generations and liquid-cooling requirements can change these assumptions during the design life, so document a low, base, and high case rather than one point estimate.
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Latency, data location, and service objectives
Specify a latency budget for each user or application class, where data must be stored or processed, and whether a temporary network interruption is acceptable. Include bandwidth and jitter requirements for distributed training, checkpoint transfer, and storage replication; latency alone is not enough.
Reliability and recovery targets
Define acceptable outage frequency and duration, maintenance strategy, redundancy for utility feeds and network paths, and recovery objectives for power, cooling, storage, and control systems. A site cannot be scored intelligently until these targets are explicit.
Expansion horizon
Set the land, utility, water, and telecommunications capacity needed for the next phase and the date by which it must be available. ASHRAE treats scalability and adaptive planning as core site-planning concerns because technology and density change over time: ASHRAE site planning guidance.
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Verify deliverable capacity and schedule with the utility; do not infer them from a nearby substation or transmission corridor. ASHRAE states that power availability and grid constraints shape where and how data centers can be built and require early utility coordination for feasibility and timeline certainty: ASHRAE Site Planning.
Ask for capacity evidence, not a map
- Available firm capacity at the proposed point of interconnection today.
- Capacity reserved for your project and the conditions that could release or reduce it.
- Required substation, feeder, transmission, protection, or generation upgrades.
- Queue position, study status, deposits, approvals, construction dependencies, and target energization date.
- Limits on ramp rate, power factor, load shedding, curtailment, or temporary service.
- Whether the utility’s estimate covers only the first phase or the full expansion plan.
Request a dated milestone schedule signed or confirmed by the responsible utility team. “Near a high-voltage line” is a geographic fact; it does not establish transformer headroom, a permitted connection, or a construction date.
Use an interconnection decision gate
- Screen: identify serving utility, transmission owner, substation, voltage level, and any published queue constraints.
- Submit the load profile: provide initial and ultimate MW, ramp behavior, power quality needs, operating hours, and backup generation assumptions.
- Obtain a study scope: record required network studies, customer-funded upgrades, deposits, and assumptions.
- Track milestones: log study completion, agreement execution, permits, equipment procurement, construction, testing, and energization.
- Stress-test dates: model delays to transformers, switchgear, rights-of-way, environmental review, and utility construction; hold a site as conditional until critical dates are contractually credible.
Include on-site generation or storage only as a resilience or schedule option unless fuel supply, emissions permits, interconnection behavior, and operating costs are verified. It does not automatically replace firm grid service.
Does an AI workload need to be close to users?
Only some workloads do. Interactive inference, real-time control, and applications with strict data-residency or user-experience limits generally benefit from proximity. Large training runs and some compute-heavy “deep thinking” workloads may be farther from population centers when energy, telecommunications, water, and other utilities are reliable.
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Separate latency classes
| Workload class | Location priority | Evidence to collect |
|---|---|---|
| Interactive inference | User-to-GPU latency, jitter, and data locality | Measured round-trip latency by user region, peak-path capacity, and residency constraints |
| Distributed training | Reliable high-capacity east-west connectivity and power | Inter-site latency, packet-loss assumptions, optical route diversity, and transfer capacity |
| Batch training or evaluation | Energy, schedule, cooling, and expansion may outweigh user proximity | Utility delivery plan, water and cooling concept, and data-ingress options |
| Mixed platform | Often benefits from separate halls or locations | Placement plan showing which services can fail over or move |
Do not turn the Australian consultation’s observations into a global siting rule. Confirm customer and data geography for the actual service, and test the network path at busy periods rather than relying on straight-line distance.
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How do cooling and water constraints change the shortlist?
Cooling design, rack density, climate, and water availability must be evaluated together. ASHRAE recommends matching cooling to workload density and considering climate and water at the site-planning stage: ASHRAE Integrated Design Principles.
Translate GPU density into a cooling concept
Provide projected cabinet power, heat rejection, allowable supply and return temperatures, humidity limits, and the share of liquid-cooled equipment. Compare air, direct-to-chip liquid, rear-door heat exchangers, immersion, or hybrid designs only after those inputs are known. A design that works for today’s rack density may not support the next GPU generation without larger heat exchangers, pumps, or water treatment.
Check climate and water availability
- Use site-specific temperature, humidity, extreme-weather, and seasonal data for design conditions.
- Identify municipal, industrial, reclaimed, surface, or groundwater sources and their dependable seasonal quantity.
- Document allocation rights, drought restrictions, discharge limits, treatment needs, and competing community uses.
- Model water consumption for normal operation, peak heat, maintenance, and failure modes; do not quote a single annual value without its assumptions.
- Evaluate air-cooled or closed-loop alternatives where water is scarce, including their energy penalty and noise implications.
ASHRAE’s framework links thermal performance, energy, water, resilience, and operations rather than treating cooling as a late equipment choice: AI Data Center Energy Performance Framework.
Use measurable efficiency assumptions
Require each candidate design to state projected power usage effectiveness (PUE), water usage effectiveness (WUE), IT-equipment energy efficiency, and cooling-effectiveness assumptions. UNEP lists these indicators among data-center and server procurement criteria: UNEP Sustainable Procurement Guidelines for Data Centres and Servers. Keep the boundary, weather year, load factor, and measurement method with every value so two sites are comparable.
What connectivity is required beyond low latency?
Evaluate telecommunications as critical infrastructure, not as an afterthought to power. A site needs enough capacity for training data, model checkpoints, storage replication, control traffic, and user service, plus physically diverse paths.
Request route and carrier evidence
- Carrier inventory, lit and dark-fiber options, and committed commissioning dates.
- Physical route maps showing whether “diverse” circuits share a duct, bridge, utility corridor, landing station, or meet-me room.
- Capacity, latency, jitter, packet-loss, service-level, and repair-time assumptions for each path.
- Independent entrances, diverse building points of entry, and resilient internal meet-me rooms.
- Options for a second site or region if the primary location loses power, cooling, or connectivity.
The Australian Government identifies telecommunications alongside energy, water, workforce, and other infrastructure in data-center planning: Australian Government consultation paper. A low-latency route with one physical choke point is not redundant.
How should hazards and resilience affect site selection?
Assess hazards at the parcel and infrastructure level, then design protection for the whole chain: utility, substation, generators, fuel, cooling plant, water, network entrances, and access roads.
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- Flood, wildfire, extreme heat, wind, hail, lightning, and severe storms.
- Earthquake, liquefaction, subsidence, landslide, and seismic effects on utility connections.
- Drought, water-quality events, heat waves, and restrictions that reduce cooling availability.
- Industrial, transportation, or neighboring land uses that create smoke, vibration, chemical, or access risks.
- Single points of failure in external power, telecoms, water, fuel, and roads.
ASHRAE’s planning and framework materials call for hazards, resilience, grid interaction, commissioning, operations, and retrofit to be considered together: site planning and framework.
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Test resilience against the stated objective
Map which failures the site must ride through, for how long, and at what reduced load. A second utility feeder may not help if both feeders share a substation; generator autonomy may not help if fuel deliveries are blocked; and dual network circuits may not help if they enter through one conduit. Record dependencies and test them in tabletop exercises before final selection.
Which permits and community approvals can delay a project?
Permitting is jurisdiction-specific and can determine feasibility as much as engineering. Create a permit map before purchasing land or promising a launch date.
Map the approval stack
- Zoning, comprehensive-plan consistency, site-plan, and building approvals.
- Environmental review, wetlands or habitat constraints, air permits for generators, noise limits, and construction-hour rules.
- Water withdrawal, treatment, discharge, stormwater, and drought-related approvals.
- Utility, road, rail, aviation, heritage, and telecommunications rights-of-way.
- Labor, fire, hazardous-material, emergency-response, and occupational requirements.
For each approval, name the authority, required studies, public-notice steps, dependency, fee, expected duration, and appeal risk. “Permittable” is not a schedule; obtain written pre-application feedback where available.
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Identify nearby residents, businesses, Indigenous communities, water users, local governments, workforce groups, and environmental interests. Explain expected noise, construction traffic, land use, water demand, emissions, jobs, and tax or infrastructure commitments. ASHRAE includes stakeholders, workforce, permitting, and community considerations in site planning: ASHRAE Site Planning.
Understand the U.S. federal threshold correctly
U.S. Executive Order 14318, issued July 23, 2025, defines a “Data Center Project” for that order as a facility requiring greater than 100 MW of new load for specified AI and related workloads and addresses federal permitting and federal land availability. That threshold is specific to the order; it is not a general engineering definition and does not replace state, local, utility, environmental, or other approvals: Executive Order 14318.
How do you compare expansion capacity and sustainability?
Reserve the physical and institutional capacity for later phases before committing to the first building. Expansion can fail because land, transformers, water rights, fiber routes, roads, or permits cannot be reproduced at the original site.
Check the expansion envelope
- Contiguous land for halls, substations, cooling yards, water treatment, roads, and setbacks.
- Utility easements and switchyard space for the ultimate load, not only phase one.
- Future water allocation, discharge capacity, and treatment-plant footprint.
- Additional diverse fiber entrances and carrier room capacity.
- Construction staging, crane access, workforce availability, and neighbors’ tolerance for later phases.
- Ability to retrofit higher-density liquid cooling without replacing core electrical or structural systems.
Use explicit phase gates: land control, utility agreement, permits, cooling validation, network commissioning, and acceptance testing. Revisit the design when GPU power, thermal limits, or model architecture changes.
Apply lifecycle and low-carbon criteria
ITU-T Recommendation L.1308 (12/2025), approved December 14, 2025 and in force, addresses low-carbon data centers across their lifecycle, including site selection, renewable resources, the natural environment, transport access, clean energy, cooling, and water: ITU-T L.1308. ITU-T Recommendation L.1322 (12/2025), also approved December 14, 2025 and in force, defines thermal-environment and performance indicators from room and row through cabinet, device, and chip levels: ITU-T L.1322. Use these recommendations to structure requirements and measurements; they do not remove local code obligations.
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What comparison framework produces a defensible shortlist?
Use the same evidence request for every site, then apply weights only after workload and reliability requirements are fixed. The following framework keeps feasibility gates separate from preference scoring.
| Axis | Questions | Evidence to request | Gate or score |
|---|---|---|---|
| Workload and latency | Training, inference, or mixed? What latency and data-location rules apply? | Workload profile, user and data geography, measured network requirements | Gate for mandatory latency or residency; score remaining fit |
| Power and delivery schedule | What capacity is deliverable, by what date, and under which upgrades? | Utility capacity, study results, upgrade scope, interconnection milestones | Hard gate for phase dates and ultimate load |
| Cooling and water | Does the design fit density, climate, water rights, and restrictions? | Cooling concept, climate inputs, water source, use and discharge assumptions | Gate for legal and physical availability |
| Connectivity | Are high-capacity, physically diverse routes available? | Carrier commitments, route maps, capacity and latency assumptions | Gate for critical paths; score surplus capacity |
| Resilience and hazards | What exposures and external dependencies remain? | Parcel hazard assessment, utility and network resilience design | Gate against recovery objectives |
| Permits and community | Which approvals, studies, stakeholders, and appeals affect schedule? | Permit map, agency feedback, environmental constraints, engagement plan | Gate critical-path approvals; score residual risk |
| Expansion and sustainability | Can land and systems scale while meeting resource goals? | Phasing plan, PUE, WUE, IT efficiency, cooling-effectiveness assumptions | Score after feasibility gates pass |
Mark each item as verified, conditional, or unverified. A site that fails a hard gate should not win through a high average score. Keep the source, date, owner, assumptions, and expiry date beside every claim.
What evidence should the diligence team collect first?
- Freeze requirements: approve workload classes, initial and ultimate MW, density range, latency, residency, resilience, and phase dates.
- Screen fatal constraints: reject parcels with no plausible utility path, prohibited land use, unavailable water, unacceptable hazards, or impossible latency.
- Engage utilities and carriers: obtain written capacity, upgrade, interconnection, route, and commissioning information.
- Validate engineering: run preliminary electrical, thermal, water, structural, geotechnical, and network studies using site-specific conditions.
- Map approvals: confirm authorities, studies, public processes, and dependencies with local counsel or permitting specialists.
- Model phases: test first deployment, ultimate build-out, delayed utility service, hotter weather, drought, and higher-density GPU cases.
- Set decision gates: require evidence before land acquisition, final design, financial close, and construction notice to proceed.
- Maintain an assumptions register: assign an owner to refresh utility dates, water rules, carrier commitments, hazard data, and technology projections.
What common siting mistakes should you avoid?
Mistaking proximity for capacity
Failure: selecting land beside a transmission line without a deliverable interconnection. Fix: require utility studies, upgrade scope, queue position, and a dated energization path.
Using one blended workload assumption
Failure: applying an inference latency requirement to batch training, or assuming every inference service can be remote. Fix: create separate latency and data-location classes and place each class deliberately.
Choosing cooling after the building
Failure: discovering that rack density, heat rejection, water rights, or drought rules invalidate the mechanical design. Fix: compare cooling, climate, water, and expansion as one workstream from the first screen.
Counting carriers instead of physical paths
Failure: buying two circuits that share one conduit or entrance. Fix: obtain route-level diversity evidence and test a complete entrance or corridor failure.
Treating a permit estimate as approval
Failure: basing a launch date on an informal “should be allowed” statement. Fix: document authorities, studies, notices, appeals, conditions, and written pre-application feedback.
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Failure: allowing cheap land or excellent latency to offset an impossible power date. Fix: establish non-negotiable power, water, hazard, latency, and permitting gates before weighted scoring.
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Optimizing phase one only
Failure: discovering that later transformers, cooling yards, fiber routes, or water allocations have no room. Fix: secure an expansion envelope and test ultimate-load assumptions before selecting the parcel.
Which standards and guidance should anchor the process?
Use guidance as a common vocabulary and design checklist, while retaining responsibility for local engineering and legal compliance.
- ASHRAE AI Data Center Energy Performance Framework covers planning and siting, integrated design, energy and thermal efficiency, grid-interactive design, resilience, commissioning, operations, and retrofit. It is a recommendation framework, not a mandatory code and not a replacement for applicable standards.
- ASHRAE Site Planning organizes utility capacity, interconnection, density, cooling, scalability, energy, water, hazards, permitting, stakeholders, workforce, and resilience.
- ASHRAE Integrated Design Principles emphasizes coordinated power, cooling, and architecture; density-based cooling; adaptive planning; and climate, water, grid, and seismic considerations.
- ITU-T L.1308 (12/2025) provides lifecycle and low-carbon site and infrastructure considerations.
- ITU-T L.1322 (12/2025) provides thermal-environment and performance indicators across facility and equipment levels.
- UNEP Sustainable Procurement Guidelines for Data Centres and Servers identifies PUE, WUE, IT-equipment energy efficiency, and cooling-effectiveness ratio as selection criteria.
These documents do not produce a universal best region. They help teams ask consistent questions; the answer still depends on a named parcel, utility, jurisdiction, workload, and schedule.
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How do you make the final location decision?
Select the site that passes every non-negotiable requirement with evidence and retains credible options for later phases. Require written utility and carrier commitments, a cooling and water design that matches density and climate, a site-specific hazard and resilience case, a mapped approval schedule, and land and infrastructure for expansion. Only after those gates pass should cost, incentives, workforce, renewable-energy options, or user-proximity advantages decide between finalists.
Frequently Asked Questions
What is a reasonable minimum power requirement for an AI data center?
There is no universal minimum: the requirement follows GPU count, rack density, storage, networking, cooling, redundancy, and expansion plans. The greater-than-100-MW figure in U.S. Executive Order 14318 applies only to that order’s defined federal project category, not to data centers generally.
Can an AI training facility be built in a remote area?
It can, if the site has dependable power delivery, high-capacity and diverse telecommunications, cooling and water resources, access roads, permits, and an adequate workforce or operating model. Distance from users is less decisive for some training workloads, but network and utility failures remain material.
How should water scarcity affect an AI site shortlist?
Treat legal availability, seasonal reliability, quality, treatment, discharge, drought restrictions, and community competition as feasibility questions. Compare closed-loop or air-cooled alternatives with their energy, noise, and capital implications rather than assuming a lower-water design is automatically better.
What should a utility letter of intent contain?
Ask it to identify the point of interconnection, available and ultimate capacity, required upgrades, study and construction milestones, customer obligations, assumptions, contingencies, and the date and conditions for energization. A generic statement that service is available is not enough to establish a project schedule.
How often should a location assessment be updated?
Refresh it whenever the workload, GPU generation, rack density, phase date, utility queue, water rules, carrier design, hazard data, or permitting conditions change. Keep an assumptions register with owners and expiry dates so an old feasibility claim cannot silently become a current commitment.
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