Environmental Planning Starts Before Construction
Data centers are essential to the digital infrastructure supporting businesses, communication, cloud computing, and emerging technologies. As demand for data storage and processing capacity grows, developers are evaluating sites for increasingly complex facilities throughout Texas.
While power availability, water supply, fiber connectivity, and site access are often central to the site selection process, environmental considerations also play an important role in determining whether a property is suitable for development.
A site that appears suitable from an engineering or commercial perspective may have environmental conditions that introduce additional permitting requirements, design considerations, or development constraints.
Existing site conditions, wetlands, protected species, cultural resources, historical land uses, stormwater requirements, and air permitting can all influence the development process.
Evaluating these factors early allows developers to better understand potential constraints and incorporate environmental requirements into project planning before they become more difficult to address.
1. Environmental Due Diligence and Existing Site Conditions
Before acquiring a property or committing to a development plan, developers should understand its environmental history and existing conditions.
Environmental due diligence can help identify potential liabilities, regulatory concerns, and conditions that may affect the property’s intended use.
For data center projects, this may include reviewing:
- Historical property uses and available environmental records.
- Previous industrial or commercial activities.
- Existing environmental permits and regulatory obligations.
- Potential soil or groundwater contamination.
- Underground or aboveground storage tanks.
- Known spills, releases, or other environmental concerns.
- Existing environmental investigations or remediation activities.
A Phase I Environmental Site Assessment (ESA), when appropriate, can help identify recognized environmental conditions associated with a property. If potential concerns are identified, additional investigation may be warranted to better understand the nature and extent of environmental conditions.
Identifying these issues before acquisition or construction can help developers evaluate potential liabilities, determine whether additional assessments are needed, and make informed decisions about site feasibility.
2. Natural Resources and Biological Constraints
Natural resources can influence where and how a data center is developed, particularly when projects involve large properties, undeveloped land, or significant site disturbance.
Depending on the location, environmental evaluations may need to consider wetlands, streams, other waters of the United States, floodplains, and habitat used by protected wildlife.
Potential considerations include:
Wetlands and waters: Site development, grading, access roads, utility corridors, and drainage improvements may affect wetlands or other regulated waters. Impacts to jurisdictional waters may require federal or state authorization, depending on the location and proposed activities.
Protected species: Federally or state-listed species and their habitats may require additional evaluation. Biological surveys and habitat assessments can help determine whether protected resources may be present and whether further coordination or permitting is necessary.
Floodplains and drainage: Floodplain conditions, existing drainage patterns, and stormwater management requirements can influence site layout, grading, and infrastructure design.
Identifying natural resource constraints early can help developers evaluate alternative site layouts, avoid or minimize impacts where practicable, and understand potential permitting requirements.
3. Cultural Resources and Historic Property Considerations
Environmental planning may also involve evaluating cultural resources and historic properties.
Depending on the property’s location and development history, a site may contain archaeological resources, historic structures, or other properties that warrant consideration.
For projects involving federal funding, permits, approvals, or other federal agency involvement, Section 106 of the National Historic Preservation Act may apply. Section 106 requires federal agencies to consider the effects of their undertakings on historic properties and provide opportunities for appropriate review and consultation.
Cultural resources evaluations may include background research, records reviews, archaeological surveys, and coordination with relevant agencies or consulting parties when required.
These considerations are particularly important when projects involve extensive land disturbance, new utility corridors, or off-site infrastructure improvements.
4. Air Quality and Environmental Permitting
Data centers require substantial electrical infrastructure to support their operations. Depending on the facility’s power strategy, onsite generation equipment may introduce additional environmental permitting requirements.
Backup generators, emergency power systems, and other combustion equipment can be sources of air emissions, including nitrogen oxides (NOx), carbon monoxide (CO), particulate matter (PM), volatile organic compounds (VOCs), and greenhouse gases.
Facilities proposing onsite power generation may need to evaluate applicable air authorization requirements before equipment is installed or operated.
Depending on equipment specifications, emissions, operating schedules, and other project-specific factors, potential authorization pathways may include a Permit by Rule, Standard Permit, or individual New Source Review authorization.
The applicable requirements cannot be determined solely by the type of facility. Equipment capacity, fuel type, expected operating hours, emissions calculations, and the configuration of the proposed system all influence the permitting evaluation.
Early air permitting assessments can help developers understand potential authorization requirements and account for emissions controls, equipment selection, and permitting schedules during project design.
5. Stormwater and Construction-Related Requirements
Large-scale data center developments can involve substantial clearing, grading, excavation, and construction activity. These activities can increase erosion and sedimentation risks if appropriate controls are not implemented.
Construction stormwater requirements should be evaluated as part of early project planning.
In Texas, construction activities that disturb one or more acres, or are part of a larger common plan of development that will ultimately disturb one or more acres, may require coverage under the applicable TPDES Construction General Permit.
Depending on project conditions and permit applicability, requirements may include preparing and implementing a Stormwater Pollution Prevention Plan (SWP3), installing erosion and sediment controls, conducting inspections, and maintaining required documentation.
Once a data center becomes operational, industrial stormwater requirements may also need to be evaluated based on the facility’s activities and applicable permit criteria.
Planning for stormwater management early can help developers incorporate drainage infrastructure and appropriate controls into site design rather than addressing them after construction planning is underway.
6. Water Resources and Utility Infrastructure
Water availability and infrastructure planning are important considerations for data center development.
Facilities may require water for cooling systems, domestic use, fire protection, and other operational needs. The type of cooling technology and the overall facility design can influence water demand and wastewater considerations.
Developers should evaluate available water and wastewater infrastructure, potential service limitations, and any applicable permitting requirements associated with proposed operations.
Off-site utility improvements may also introduce environmental considerations. Water lines, wastewater infrastructure, electrical transmission, and access improvements can extend beyond the primary development property and potentially affect additional land or regulated resources.
Evaluating these improvements as part of the broader development plan can help identify environmental requirements associated with the full project footprint.
7. Why Early Environmental Coordination Matters
Environmental considerations are interconnected. A wetland constraint may influence site layout, which may affect drainage design or the placement of utility infrastructure. An air permitting requirement may influence equipment selection, while cultural resources findings may affect construction planning or project timelines.
When environmental evaluations occur late in the development process, project teams may have fewer options for addressing identified constraints.
Early coordination can help developers:
- Identify potential environmental constraints before finalizing site selection.
- Understand permitting requirements and potential agency coordination.
- Evaluate alternative site layouts and infrastructure routes.
- Incorporate environmental considerations into engineering and design.
- Identify potential environmental liabilities before property acquisition.
- Develop more informed project schedules and budgets.
Environmental due diligence is not simply a permitting exercise. It is part of understanding whether a site can support the proposed development and what may be required to move the project forward.
How ESE Partners Supports Data Center Development
Data center projects require coordination across multiple disciplines, particularly when development involves large properties, extensive infrastructure, onsite power generation, or complex permitting considerations.
ESE Partners provides environmental consulting support throughout the development process, helping clients evaluate site conditions, identify potential constraints, and navigate applicable environmental requirements.
Our services can include environmental due diligence, air permitting and compliance, wetlands and waters evaluations, biological assessments, cultural resources support, stormwater permitting, and corrective action.
By bringing environmental considerations into the planning process early, ESE helps developers make informed decisions and address potential requirements before they become obstacles to project implementation.
Contact ESE Partners to learn how our environmental professionals can support your next data center development project.
