Site Selection Criteria for Data Center Deployments

Why Site Selection Matters

The choice of deployment site constrains every subsequent infrastructure decision. Power availability determines maximum capacity and redundancy options. Climate affects cooling strategy and energy costs. Connectivity options define network architecture. Permitting timelines influence project schedule. A rigorous site evaluation process prevents costly mid-project discoveries and ensures the selected site can support the full program lifecycle, not just the initial phase.

This guide provides a systematic framework for evaluating candidate sites against the criteria that most directly impact data center infrastructure design, cost, and operational viability.

Power Infrastructure

Utility Capacity and Availability

Power is the single most important site selection criterion. Evaluate the utility service in terms of available capacity (MVA), voltage level (transmission vs. distribution), number of independent feeds, and the utility provider commitment timeline. Many sites that appear adequate for initial phases lack the utility infrastructure to support full buildout without significant grid upgrades.

Power Cost and Rate Structure

Electricity is the largest ongoing operating cost for a data center, typically representing 40-60% of total operating expenses. Evaluate not just the current rate but the rate structure, demand charges, renewable energy availability, and historical rate trends. A site with a low rate per kWh but aggressive demand charges may be more expensive over a 15-year operating life than a site with a slightly higher flat rate.

Network Connectivity

Evaluate fiber connectivity to the site, including the number of independent fiber providers, latency to key peering points and cloud on-ramps, and the availability of dark fiber for dedicated network buildouts. For edge deployments, latency to the target user population is often the primary site selection driver.

• Carrier diversity: Minimum of two independent fiber providers with physically diverse routes to the site. Three or more is preferred for hyperscale and colocation deployments.
• Latency: Measure actual round-trip latency from the site to key network exchange points, cloud regions, and end-user concentrations relevant to the business use case.
• Expansion capacity: Ensure the fiber infrastructure can scale with the data center program. Initial connectivity may be adequate but insufficient for Phase 2+ bandwidth requirements.

Environmental and Climate Factors

Climate directly impacts cooling system design and energy efficiency. Sites in cool, dry climates enable maximum free-cooling hours and lower PUE. Sites in hot, humid climates require more mechanical cooling capacity and consume more energy. Evaluate the annual temperature and humidity profile, considering both average and extreme conditions.

Natural Hazard Assessment

Assess the site for exposure to natural hazards including seismic activity, flooding (river, coastal, and flash flood), hurricanes and severe weather, wildfire risk, and tornado frequency. While no site is risk-free, the assessment informs design requirements (seismic bracing, flood elevation, wind loading) and insurance cost.

Permitting and Regulatory

Data center permitting varies enormously by jurisdiction. Some regions have streamlined permitting for data center development with dedicated economic incentives. Others require extensive environmental review, community engagement, and lengthy approval processes that can add 12-24 months to the project timeline.

• Zoning: Confirm the site is zoned for data center or heavy industrial use. Rezoning is possible but introduces timeline risk and community opposition potential.
• Environmental review: Determine whether the project triggers environmental impact assessment requirements under local, state, or federal regulations.
• Water permits: If using evaporative cooling, confirm water availability and permitting for the required consumption volume.
• Noise ordinances: Generator testing, cooling equipment, and transformer hum must comply with local noise limits, particularly for sites near residential areas.

Construction and Logistics

Evaluate the physical accessibility of the site for construction activities and equipment delivery. Container and modular deployments require crane access and clear delivery paths for oversized loads. Building + skid deployments involve significant on-site construction activity with heavy equipment staging areas and material laydown yards.