Power Is the New Bottleneck

Executive Summary

Rapid growth in data center demand, electrification of industry, and increased grid reliability concerns have pushed power availability to the front of corporate site selection. For many projects, the core question is no longer “What incentives are available?” but “Can power be delivered—credibly—at the right capacity, reliability, price, and timeline?”

Location Design Group (LDG), in collaboration with utilities and our parent company ATK Energy Group, integrates energy diligence into site readiness through the Strategic Sites Inventory (SSI) and Core Suitability model—providing clarity on capacity, redundancy, timelines, and decarbonization pathways.

What’s Changed in Energy for Site Selection

Power demand profiles have shifted in both volume and characteristics. Hyperscale and AI data centers require large, stable loads and stringent reliability. Advanced manufacturing is increasingly electrified and can have dynamic load profiles. At the same time, many corporate mandates now include carbon intensity targets.

Interconnection queues can be long, transmission constraints material, and distribution upgrades capital-intensive. In this environment, early, precise energy diligence—down to feeder-level constraints and realistic energization timelines—has become decisive.

Where Projects Get Stuck

Typical failure points include:

1. Assuming nameplate substation capacity is available when practical deliverable capacity is constrained.
2. Underestimating lead times for line, substation, or transformer upgrades.
3. Overlooking outage histories and N-1 redundancy requirements.
4. Treating renewable procurement and carbon goals as afterthoughts.
5. Misaligning energy needs with local policy, permitting, and community expectations.

These issues create late-stage surprises that reset schedules and budgets—often after significant time and capital have already been invested.

LDG’s Energy-Ready Framework (with ATK Energy Group)

Core Suitability: Energy as a First-Pass Filter

Core Suitability elevates energy to an early screening threshold. Key diligence items include:

• Required load (MW/MVA) and ramp schedule
• Reliability indicators (e.g., outage history; SAIDI/SAIFI-style proxies where available)
• Redundancy (N-1 resilience, dual-feed options, topology constraints)
• Upgrade scope and realistic lead times (lines, substations, transformers)
• Price trajectory and tariff considerations
• Decarbonization pathways (on-site generation, PPAs, RECs)
• Power quality requirements and sensitivity (for data centers and advanced manufacturing)

SSI: Portfolio Governance for Deliverable Capacity

SSI provides the governance and portfolio view to operationalize energy readiness. It helps teams:

• Classify sites based on near-term deliverable capacity, committed upgrades, and realistic interconnection timelines
• Assign accountable owners across partners
• Audit energy data quarterly so readiness doesn’t go stale

With ATK Energy Group’s expertise, LDG integrates feasibility of on-site solutions (solar, storage, CHP), load flexibility, and power quality needs into early feasibility—making energy a designed feature rather than a late-stage constraint.

Implications for Utilities, Governments, and Developers

For Utilities

• Publish credible capacity maps and clearly define what “deliverable capacity” means (not just nameplate).
• Communicate standard lead times and upgrade programs transparently.
• Negotiate delivery SLAs aligned to corporate construction schedules.

For Governments

• Streamline energy-related permitting and approvals.
• Enable corridor access for transmission and distribution improvements.
• Support financing tools for upgrades (e.g., grants, bonds, targeted incentives).

For Developers and Landowners

• Pre-coordinate easements, right-of-way, and off-site improvements.
• Align site plans with utility upgrade pathways to accelerate energization.

Implications for Corporate End Users

Anchor early diligence on energy. Specifically:

• Request feeder/substation-level capacity and redundancy details (not just high-level statements).
• Validate outage history and maintenance practices.
• Model upgrade timelines against the construction schedule to identify the true critical path.
• Define a carbon pathway that meets enterprise goals (on-site renewables, off-site PPAs, storage, RECs).
• Integrate cooling, water, and thermal requirements—especially for data centers.
• Engage communities early, including environmental justice considerations, to reduce late-stage opposition risk.

How Communities Can Demonstrate Energy Readiness

Build an energy readiness package for each candidate site, including:

• Current deliverable capacity (not just nameplate)
• Committed upgrades with schedules and responsible parties
• Redundancy topology (dual feed options, N-1 resilience)
• Outage performance and reliability metrics (where available)
• Tariff options and pricing considerations
• Renewable procurement mechanisms (PPAs/RECs)
• On-site feasibility (solar, storage, CHP) and power quality requirements

Use SSI to prioritize sites where energy commitments are realistic within a 6–18 month delivery window, and apply Core Suitability thresholds to screen out locations that cannot meet reliability or carbon requirements.

Closing POV

Power has become the gatekeeper of modern site selection. Communities, utilities, and corporate teams that treat energy as a first-order design constraint—supported by SSI governance and Core Suitability screening—reduce surprises, compress schedules, and deliver projects that are resilient, compliant, and future-ready.

Key Takeaways

• In many projects, power availability now determines site viability before incentives are even considered.
• Deliverable capacity is what matters—feeder constraints, interconnection queues, and upgrade lead times change the real answer.
• Reliability and redundancy (N-1, topology, outage history) must be validated early.
• Carbon pathways should be planned up front—not bolted on later.
• SSI + Core Suitability turn energy readiness into defensible governance and predictable schedules.