In today’s data-driven world, data centers are the backbone of digital infrastructure. The rise of energy-hungry artificial intelligence has led to an unprecedented surge in power demand, making robust, reliable energy sources essential for data centers. Enverus Intelligence® Research (EIR) projects that data center capacity will rise by 20 GW from 2023 to 2030. However, this impact won’t be uniform across regions; PJM and areas like Washington and ERCOT will experience the greatest data center-driven load growth due to their access to fiber infrastructure both onshore and offshore.
Selecting the right site is now more critical than ever, as siting directly influences a data center’s performance, reliability and cost-efficiency. With so many variables to consider—such as power availability, cooling needs and connectivity—this e-book explores essential siting criteria and demonstrates how partners like Enverus provide data-driven insights to optimize site selection and streamline development for this new era of digital expansion.
Enverus provides a suite of advanced tools and analytics that empower data center developers to make strategic, data-driven site selection decisions. By combining insights on power availability, connectivity, market conditions and land suitability, Enverus enables developers to identify optimal sites that align with their technical, financial and sustainability goals—ensuring resilient, cost-effective and strategically located data centers.
A stable and scalable power supply is essential. Data centers consume immense amounts of energy, requiring uninterrupted power to maintain operations. This need often drives site selection toward areas near large power plants or renewable energy sources, such as solar or wind farms. However, obtaining access to these energy sources can involve lengthy negotiations with local utilities and in some cases, infrastructure upgrades are needed to handle the increased demand. Developers must consider both the current availability of power and the site’s potential for future expansion.
For data centers, reliable power is critical and considered the most important aspect of a data center and is possible with renewable energy sources like solar and batteries.
Stable, continuous power is essential for data centers to avoid downtime and meet high energy demands. Regions with surplus baseload capacity are particularly attractive as they offer consistent power availability. Natural gas and other dependable energy sources are often prioritized, though renewable energy options are becoming more viable with advancements in storage and hybrid models. (Check out our siting battery storage playbook.)
Access to uninterrupted power is a critical requirement for data center site development. An EIR shows most sites demand 99.99% power reliability, allowing no more than 53 minutes of downtime per year. The following criteria should be used to evaluate a site’s energy availability:
Load centers need to ensure that there is enough capacity within their point of interconnection of interest to properly and reliably withdraw from the grid. Alongside the presence of reliable power capacity, data centers need to ensure the offtake is present to support their project requirements.
The available withdraw capacity (AWC) is how much energy can be taken from the grid at any given time without causing issues with
other users or causing brownouts.
The average daily minimum capacity is the amount of power that can be generated by a facility on any given day, regardless of demand. This number should be high enough to ensure that there will always be enough power available for data center operations.
Panorama allows users to assess AWC across hourly, daily, weekly and monthly intervals for a bus. This detailed view provides the insights needed to determine if there’s sufficient capacity to sustain data center operations consistently. Extended periods of low AWC can signal that a site that may struggle to meet withdrawal demands, potentially leading to higher costs due to constrained grid conditions.
An initial review of AWC across time intervals may suggest that a site isn’t suitable for a data center. However, developers can investigate periods of low AWC more closely, examining the specific limiting constraints causing these conditions. This analysis helps predict when constraints may reoccur and identifies whether they were caused by unusual events or weather affecting renewables or transmission outages. By conducting this deeper analysis, developers can make more informed decisions about the site’s long-term sustainability for data center power needs.
When evaluating potential sites, analyzing the average daily minimum power capacity is often more practical than simply looking at average capacity levels. A higher average capacity can sometimes mask fluctuations, while the average daily minimum provides a clearer picture of the lowest amount of power available each day. This insight is essential because it helps data centers gauge whether they can reliably draw the needed power from the grid—even during low-supply periods. Tools like Enverus PRISM® can assist by analyzing historical energy data to identify locations with consistent minimum power availability, helping ensure that the selected site can meet daily baseline energy requirements without frequent disruptions.
A key component of this integrated approach is Panorama, which goes beyond simply analyzing the available capacity at a bus. It offers deep insights into surrounding grid infrastructure, including transmission lines, substations, power plants and load profiles. By evaluating these interconnected components, developers gain a comprehensive understanding of each site’s grid power potential. This thorough assessment ensures that the selected site can support consistent power withdrawal without the risk of limitations, enabling the deployment of resilient, cost-effective, strategically positioned data centers.
Electricity is often the single largest operating expense for data centers, making access to affordable power a major factor in site selection. Locations with low-cost energy are particularly attractive, as they allow data centers to minimize ongoing operational costs. By situating data centers in areas with competitive energy prices, operators can achieve significant savings over the long term, which contributes directly to improved financial performance and return on investment.
With energy costs and price stability being critical to data center operations, having access to real-time and predictive data on electricity prices is essential for long-term success. Data centers are among the largest consumers of power, so fluctuations in electricity prices and availability can significantly impact their operating budgets. Data-driven insights allow data center planners to anticipate these changes, plan for peak demand periods and make smarter location decisions based on power stability and cost efficiency.
Effective site selection also requires evaluating power sources not just by cost, but by the stability of those costs over time. By using data to compare options like natural gas, renewables and other sources, developers can assess both cost and long-term price stability. Using tools that offer historical and predictive data on various power sources, helps data centers secure low-cost power with greater confidence.
Panorama also enables forward-looking analysis by incorporating data on planned infrastructure projects. By evaluating how future grid projects might impact constraint flows, developers can better understand how a site’s withdrawal capacity might evolve. This feature is particularly useful for predicting how the grid will handle additional generation over the coming years.
Identifying a suitable and buildable parcel of land is a critical first step in developing a data center. A thorough evaluation of the land’s characteristics can significantly influence the feasibility, cost and long-term success of the project.
Key criteria for parcel suitability include:
In sum, finding a suitable and buildable parcel for data center siting requires a comprehensive evaluation of size, topography, zoning, environmental constraints and infrastructure access. By carefully assessing these factors, developers can identify parcels that offer both immediate viability and potential for future growth, supporting the data center’s long-term operational stability and cost-effectiveness.
Physical characteristics of the land, such as size, proximity to resources and buildability are foundational for successful site selection. Suitable parcels need to accommodate large-scale infrastructure, cooling systems and potential expansions. Access to natural cooling sources (like water bodies) and proximity to existing infrastructure, such as power lines and transportation, can further enhance site viability and reduce initial setup costs.
Cooling is one of the most critical operational requirements for data centers due to the substantial heat generated by servers and networking equipment. Effective cooling solutions help ensure data center performance and longevity while managing energy consumption. Being situated near natural bodies of water, such as rivers or lakes, offers distinct advantages for meeting these cooling needs:
Proximity to fiber optic cables is a key consideration when selecting a data center site, as high-speed, reliable connectivity is essential for efficient data center operations. Several factors make fiber accessibility crucial:
By assessing the existing fiber optic network around potential sites, data center planners can gauge each parcel’s connectivity strengths and limitations, contributing to a comprehensive understanding of the site’s long-term suitability.
Siting a data center requires a systematic approach to ensure that the chosen location meets operational, financial and sustainability goals. This process integrates advanced tools and analytics to address power needs, connectivity, market trends and environmental considerations. Below is a concise breakdown of the workflow for siting a data center.
Some criteria are essential to a project’s success and are considered pass/fail factors during the initial stages of the workflow.
The first step in siting a data center is evaluating grid infrastructure to confirm it can handle increased load demands (AWC). This involves analyzing nearby substations to ensure they are within a 5-mile radius, as well as assessing transmission lines and overall grid stability. For now, natural gas remains essential for consistent power until renewable technologies advance.
Partners like Enverus play a key role by conducting power flow analyses and offering insights into grid volatility, capacity constraints and contingency scenarios. A critical focus is ensuring consistent baseload availability to reliably meet the data center’s daily energy needs without interruptions.
Energy reliability is the backbone of any data center operation. The first step in siting a data center involves evaluating the grid infrastructure to confirm its capacity to support increased load demands. This includes analyzing nearby substations, transmission lines, and overall grid stability. Partners like Enverus are invaluable for conducting power flow analyses, providing insights into grid volatility, capacity constraints, and contingency scenarios. A critical focus is placed on assessing consistent baseload availability to ensure the site can reliably meet the data center’s daily operational energy needs without interruptions.
Land suitability is vital for seamless construction and future scalability. Data center developers evaluate parcels for zoning compliance, topography and environmental considerations. The existing grid infrastructure must be assessed for its ability to support the data center’s power needs, as upgrades or expansions could significantly impact costs and timelines. Repurposed or underutilized land may offer a cost-effective alternative while aligning with sustainability goals.
Fiber optic connectivity is vital for data center operations, as robust network infrastructure supports low latency and high-speed performance. Developers must analyze proximity to fiber optic cables to ensure seamless connectivity. Partners like Enverus provide visualization of nearby fiber infrastructure, adding an essential layer of context to the siting decision.
Environmental and regulatory compliance are integral to the siting process. Developers must review local policies for potential incentives and ensure the site adheres to all regulations. Additionally, assessing the environmental impact, including cooling resource requirements and the potential for renewable energy use, helps align the project with sustainability objectives.
The final step in siting a data center involves cross-referencing all collected data to identify the most suitable sites. Stakeholders review and approve recommendations based on a comprehensive analysis of power availability, connectivity, costs and scalability. Partners like Enverus validate site feasibility, ensuring that decisions are data driven and align with both immediate needs and long-term objectives.
Selecting the right site is fundamental to successful data center operations, as location directly impacts performance, reliability and cost-efficiency. Enverus supports this critical process by providing comprehensive data and analytics to address the unique challenges of data center siting. Through insights on power availability, connectivity, market conditions and land suitability, Enverus enables developers to make well-informed decisions that align with technical, financial and sustainability goals.
As the demand for data centers continues to grow, Enverus stands out as a trusted partner in digital infrastructure planning. More than 6,000 businesses, including 1,000+ in electric power markets, rely on our solutions daily to develop projects, manage the grid and optimize asset performance. By reducing project timelines by an average of 500 days in the interconnection queue, Enverus accelerates site selection and setup, helping customers enter the market faster with greater resilience and cost-effectiveness.
With a team of more than 1,700 professionals, including 300+ power and renewables experts, Enverus offers a wealth of experience and expertise to navigate the evolving challenges of today’s energy and data landscapes. This e-book reflects our commitment to supporting your growth with insights and solutions that power efficient, strategic and future-ready data centers.
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