Each year Soben, part of Accenture, publishes an annual report exploring the trends and challenges shaping the industry. I’m examining one of these trends – and one of the most significant delivery risks for large-scale data center programmes: permitting.
I’ll explore why permitting is becoming more challenging, what is slowing projects down, and what practical steps developers can take to de-risk the process and keep programmes moving.
Why permitting has become a delivery risk
Securing the right permits has always been a requirement for construction projects. So why has permitting suddenly become such a dominant issue for data centers?
We are facing a perfect storm. As developers race to meet unprecedented demand, pressure on land, utilities and energy infrastructure has intensified. The permits themselves may not have changed, but the scale, density, and resource requirements of new facilities have.
Projects are asking for more power, more water, and larger footprints than ever before, and permitting authorities are under strain.
At the same time, development has moved well beyond traditional FLAPD markets. The shift to AI workloads means data centers can be in more remote regions, opening up new geographies.
However, in many of these markets, local authorities are less experienced in handling large-scale data center applications, which can add further complexity and delay.
National planning as a competitive lever
There is strong political support in many countries, with data centres increasingly recognized as critical national infrastructure. Some national governments are taking positive steps to streamline processes and attract investment.
The UK’s AI growth zones are a good example. Pre-identifying suitable sites, particularly those with access to sufficient power, removes one of the biggest early-stage blockers. While development is still at an early stage, these pre-designated zones will enable faster mobilisation once schemes progress.
We’re seeing similar benefits in our work in Norway, where areas have been pre-zoned for data center development, with power already in place.
However, challenges can arise where national ambition is not fully aligned with local authority processes. Even where central government is supportive, local permitting capacity and interpretation can slow progress.
Why early community engagement protects timelines
Political support alone is not enough. Local communities must also be engaged early.
The data center sector continues to face perception challenges, particularly around power and water usage. If these concerns are not addressed proactively, they can significantly delay projects.
On a recent project in Norway, we supported our client GreenScale with proactive community engagement, running a town hall with local residents, and looking at the benefits of data center development compared to other land uses.
A community benefits report commissioned by GreenScale compared the proposed data centre with an alternative industrial facility on the same site. The findings were clear: the data centre would be quieter, cleaner, and less disruptive, while also generating high-quality local employment and annual value creation.
All this helped shift the narrative and build local support. Early and transparent engagement has been instrumental in keeping that project on track.
Taking control of resource constraints
Resource availability remains one of the biggest permitting barriers. For power- and water-intensive facilities, approval is only possible where sufficient capacity exists. Data center operators tend to seek as many favourable attributes as possible when scouting for locations.
But the geographic imbalance of data centres leaves some regions overwhelmed and others underutilized. Data from Accenture shows that 80 percent of US data center electricity consumption in 2023 was concentrated in just 15 states.
Pre-identifying suitable sites is one solution. Increasingly, however, developers are taking more direct control.
Heat reuse schemes are becoming more common and can materially reduce community concerns. For example, GreenScale has committed to implementing heat reuse across its developments.
Power strategy is evolving too. Norway continues to lead in renewable-powered facilities, primarily through hydroelectric generation. Backup systems are also changing, with developers like Greenscale moving away from much-criticised diesel generators towards lower-emission alternatives.
However, the reality remains that in many markets there is simply not enough grid capacity. This is driving interest in off-grid and behind-the-meter solutions, allowing developers to reduce reliance on constrained networks and accelerate approvals.
We are also seeing hyperscalers explore greater ownership of their energy strategies, whether through direct procurement, private generation or strategic investments. For example, Google’s recent $4.75 billion acquisition of Intersect Power demonstrates how leading tech firms are securing generation capacity directly to support long-term data center growth.
Embedding permitting into early strategy
Permitting challenges are rarely solved late in the programme. Early strategy is critical. According to research by Accenture, top-performing project owners focus on high-risk factors early, engage stakeholders and regulators upfront and build flexibility into early design and approvals. In data center programmes, permitting has become one of the most material of those risks.
At Soben, part of Accenture, we are working closely with clients to take a proactive approach to permitting from the outset. At GreenScale’s development of Tonstad Campus in Sirdal, Norway, we are leading the permitting strategy, engaging directly at the local municipality level, and identifying opportunities to fast-track approvals through structured engagement and early clarity.
Understanding local precedent is equally important. Knowing where previous projects have stalled helps avoid repeating mistakes. Working with experienced local partners, engaging authorities early, and clearly mapping out requirements from the outset all reduce risk.
We recommend seeking outline approvals as early as feasible, rather than waiting for detailed design. Where appropriate, securing consent for broader parameters can also avoid the need to return for amendments later.
Turning permitting into a competitive advantage
Permitting is unlikely to become easier. As facilities grow larger and more resource-intensive, scrutiny will increase. Even where governments recognise the strategic importance of digital infrastructure, growing volumes of development inevitably create pressure on planning systems.
Developers who succeed will be those who treat permitting not as an administrative step, but as a core element of delivery strategy. Early planning, smart site selection, flexible design, meaningful community engagement and innovative energy solutions will differentiate projects that move forward from those that stall.
Permitting is now part of the competitive landscape. Those who plan for it early, and manage it strategically will move faster.
Read the orginal article: https://www.datacenterdynamics.com/en/opinions/when-permitting-becomes-programme-risk-and-what-to-do-about-it/
