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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchBefore approving a data center, a local government should require project-specific evidence about electricity, water, environmental and neighborhood effects, public costs, and promised benefits—and establish which agencies have authority over each decision. A building proposal alone cannot answer whether the utility can serve the site, who will pay for required infrastructure, or whether the public return justifies the costs and commitments.
This U.S.-focused checklist draws on official state, local, and federal materials checked October 7, 2026. It is a framework, not a substitute for the current code, permit requirements, utility review, or legal advice in a particular jurisdiction. Authority is divided, and the rules depend on state and local law.
1. What exactly is being proposed?
Ask for a complete description of the project, not just a headline investment amount or a building’s maximum capacity. Maryland’s published executive-order material identifies the end user, electricity and water needs, energy plan, and timeline as useful first-contact questions; Pennsylvania’s Department of Community and Economic Development offers a planning toolkit for local officials covering review from initial inquiry through zoning, permitting, and long-term planning.
- Site and development: parcel boundaries, acreage, existing site conditions, building and site plans, proposed phases, construction schedule, and any later expansion contemplated by the applicant.
- Use and ownership: intended computing use, proposed operator, known end user, and who will own and operate the facility and associated infrastructure.
- Power: peak demand, expected ongoing demand, expected timing of load, energy-sourcing plan, backup-generation plan, and the status of utility service and interconnection requests.
- Water and wastewater: water source, projected withdrawals and consumption, seasonal assumptions, cooling design, wastewater needs, and the status of required service arrangements.
- Approvals: permits already obtained, applications pending, and approvals the applicant believes are still required.
For each estimate, request its assumptions, measurement basis, supporting analysis, and responsible party. If the proposal is speculative or the end user is not yet known, make that uncertainty visible in the review rather than treating an uncommitted forecast as a settled project fact. Maryland’s materials specifically call for screening speculative proposals.
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2. Can the power system serve the project, and who pays?
Request information from the relevant electric utility and qualified reviewers. A developer’s stated megawatt demand is not, by itself, evidence that the requested service is available or that the project will not require costly system work. Nashville’s local review framework identifies electrical demand, grid capacity, reliability, and public infrastructure costs as review topics; Michigan’s data-center information identifies electricity cost and reliability among community concerns.
- Ask the utility to confirm the status of service and interconnection, the available capacity, and any conditions or unresolved studies.
- Request an account of required transmission, distribution, and other utility work, the expected schedule, and the party responsible for construction and operating costs.
- Ask how the proposed load could affect reliability, energy sourcing, and other customers, and what evidence supports the conclusions.
- Require a clear explanation of how project-related costs would be allocated and what enforceable commitments, if any, support that allocation under applicable law.
Do not infer a project-specific grid impact from general state or local guidance: the cited materials do not provide engineering findings for a particular site. Obtain project-specific review from the utility and qualified experts, and distinguish confirmed service arrangements from requests or preliminary assessments.
3. Is water available without harming other users or resources?
Ask for a water plan that distinguishes withdrawal—water taken from a source—from consumption—water not returned to that source in the same period or location. The source, season, cooling system, and drought conditions all matter when evaluating a demand estimate.
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- Request projected water withdrawal and consumption by phase, source, and operating condition, including the assumptions behind peak and typical use.
- Ask whether the water and wastewater systems have capacity, what upgrades would be needed, and how those costs and service obligations would be assigned.
- Require analysis of seasonal availability, drought conditions, effects on existing users, and wastewater treatment or discharge needs.
- Ask the applicant to compare cooling approaches, including closed-loop, air-cooled, and reclaimed-water options, and explain the trade-offs for this site.
- Determine whether actual water use can be reported publicly over time under local law and any project approvals.
Maryland’s published materials call for demonstrating adequate water supply, examining cooling alternatives that reduce potable-water use, and ongoing public disclosure. Tennessee’s Department of Environment and Conservation identifies water use and wastewater among possible environmental-permit subjects. These are review considerations, not findings that any particular source or system can meet a proposed demand.
4. What environmental and neighborhood effects need review?
Ask for site plans and project-specific assessments before deciding whether impacts are acceptable or what approvals may be needed. Nashville’s framework includes air quality, water, heat, noise, nearby residential compatibility, public health, and disproportionate impacts. Pennsylvania’s toolkit also addresses infrastructure, zoning, legal issues, and community engagement.
- Land and water: site disturbance, drainage, stormwater management, wastewater, discharges, and any effects on nearby resources.
- Air and sound: backup-generator emissions and operating assumptions, equipment noise, and any applicable local limits or permit requirements.
- Neighbors and access: traffic during construction and operation, heat, compatibility with nearby uses, and effects on residential areas or other sensitive locations.
- Site history: contamination, cleanup requirements, engineering controls, and who will maintain those controls over time.
For a brownfield or previously used industrial site, EPA’s data-center reuse guidance emphasizes responsible siting and planning, engagement, alignment with cleanup standards, proper maintenance of engineering controls, conservation, and environmental protection. Apply those cleanup and control questions where they are relevant to the site; they are not a substitute for determining the permits required for a specific project.
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5. Which body has authority over each decision?
Map approvals before negotiating conditions or making promises. Land use, environmental permits, utility service, grid planning, and other approvals may belong to different bodies. Tennessee TDEC states: “TDEC’s permits are not specific to data centers, and TDEC does not approve a data center project as a whole.” Its guidance assigns zoning and land use to local government, environmental permits to TDEC or applicable local programs, grid planning to utilities and other authorities, and noise usually to local government. The exact allocation depends on state law and local code.
| Decision area | Potential responsible body | What officials should establish |
|---|---|---|
| Land use, zoning, and local noise rules | Local government, as described in Tennessee guidance | Applicable code, decision-maker, hearing process, and lawful conditions. |
| Environmental permits | State environmental agency or a local program where applicable | Which permits apply, which agency issues them, and what they do—and do not—authorize. |
| Electric service and system planning | Relevant utility and other authorities | Service and interconnection status, system work, cost allocation, and any separate approvals. |
| Other state or federal approvals | Relevant agency or authority, depending on the issue | Whether a separate approval is required and how its timing relates to local decisions. |
Have municipal counsel map the approval sequence and identify which commitments the local government can lawfully impose. Nashville’s executive order illustrates one local review structure involving codes, health, planning, transportation, water and sewer, and electric service, with finance and legal staff supporting the review. Its threshold—at least 20,000 square feet, expected demand of 5 megawatts or more, or a planning determination of substantial impacts—is specific to that order, not a nationwide definition.
6. Does the public benefit justify the public cost?
Compare projected revenues and community benefits with incentives, infrastructure and service costs, and opportunity costs over an explicit time horizon. Ask for the assumptions behind jobs, wages, investment, and tax-base estimates; request sensitivity analysis where outcomes depend on uncertain phases, occupancy, or other assumptions. Pennsylvania’s toolkit includes fiscal, economic, and service impacts. Nashville’s framework calls out revenues and expenditures, utility costs, and the opportunity cost of land. Maryland’s materials address incentive interactions, long-term tax-abatement analysis, reopener terms, service costs, and community-benefit agreements.
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- Estimate local revenues alongside tax incentives or abatements, rather than presenting gross revenue as the net public return.
- Identify construction and ongoing costs for infrastructure, public services, utilities, and emergency response, including who pays and when.
- Account for the opportunity cost of land and public capacity that could serve other uses.
- Test how the fiscal picture changes if projected employment, investment, or phases do not materialize as assumed.
- Where lawful, turn desired benefits into measurable terms with reporting, successor obligations, remedies, and periodic review.
Michigan Treasury reports “5 to 10 filings annually,” $212 million in exempt purchases, and less than $13 million in combined sales/use tax impact for 2020–2024. Those figures concern Michigan’s reported qualified or enterprise data-center exemption activity; they are not a forecast for a proposed project, an estimate of local project costs, or a national benchmark.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.7. How will residents participate and track commitments?
Make understandable proposal materials available early enough for residents to ask questions before the key decision. Identify nearby sensitive uses and whether burdens could fall disproportionately on particular neighborhoods. Explain which impacts and commitments can be monitored, who will report them, and how the public can see the results, subject to applicable law.
EPA’s guidance for brownfield and Superfund reuse emphasizes thoughtful planning and engagement; Nashville identifies neighborhood compatibility, disproportionate effects, public health, and quality of life; Maryland’s materials address public disclosure and measurable community-benefit terms. The available process and conditions depend on local law. A public-facing record should distinguish applicant estimates, agency or utility findings, approval conditions, and outcomes measured after operation begins.
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How to compare two or more project alternatives
If the applicant offers multiple sites, designs, cooling systems, or energy plans, compare them using the same evidence and assumptions. This keeps the choice from turning on a single attractive figure while hiding trade-offs elsewhere.
| Comparison area | Evidence to compare |
|---|---|
| Electricity | Demand, source, grid effects, required system work, and cost responsibility. |
| Water | Withdrawal and consumption, source, cooling approach, wastewater needs, and drought resilience. |
| Site and neighbors | Site condition, land-use compatibility, cleanup needs, and environmental and neighborhood impacts. |
| Public return | Revenue and employment claims against incentives, public costs, and opportunity costs over time. |
| Commitments | Measurability, transparency, enforceability under local law, and responsibility for performance. |
Use common assumptions where possible, record where alternatives differ, and identify what remains unknown before selecting or approving an option.
A practical review sequence
- At first contact: request the project description, end user and operator information, phases, schedule, peak and expected power demand, water plan, energy plan, and permit status.
- Before formal review: ask the utility and relevant agencies to identify service status, required studies, permit pathways, and likely infrastructure needs; have counsel map local authority and procedure.
- During impact and fiscal review: evaluate water, environmental and neighborhood effects, costs, incentives, public services, and the assumptions behind projected benefits.
- Before a decision: provide accessible materials and a meaningful opportunity for public questions; compare alternatives on consistent terms and state which facts remain uncertain.
- When setting lawful conditions: define measurable commitments, reporting responsibilities, timing, successor obligations, and remedies where the jurisdiction has authority to do so.
Before applying this framework to a specific place, verify the current zoning code, permit matrix, hearing requirements, utility capacity and cost allocation, incentive law, and any recent moratorium or executive order. Those details can change, and general guidance cannot determine the merits of a particular proposal.
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