Data Center Site Due Diligence Checklist

Diligence starts once a site is under contract or option, and it runs against a deadline. Most agreements give the buyer a defined period to investigate and walk away. That clock makes sequencing important. Items that take the longest, or that could kill the deal outright, should start on day one.

This checklist assumes a feasibility study has already been done. If it has not, diligence tends to become an expensive way of discovering basic problems. Each item below lists what to obtain and the kinds of findings that should trigger a closer look.

On assembled sites, each parcel needs its own title review, and the survey should confirm the parcels are contiguous with no strips held by others. Our guide to parcel assembly covers the common gaps.

Power diligence turns feasibility indications into commitments, or as close to commitments as the utility will provide during the diligence period. Formal answers usually come through the large-load interconnection process, and that process often runs longer than a diligence period. Buyers commonly negotiate extensions tied to utility milestones for this reason.

• Submit a load request or study application as early as the utility allows, with a realistic load ramp.
• Confirm the serving substation, voltage and the utility’s view of available capacity.
• Identify required upgrades, who pays for them and their indicated timing.
• Get written correspondence where possible: capacity letters, study results or meeting summaries.
• Locate land for an on-site substation and confirm the utility’s requirements for it.
• Check whether the site sits in a regulated utility territory or a retail choice area, as this changes the process.

A Phase I ESA is the standard first step for contamination risk and supports certain liability protections for buyers. Our Phase I ESA guide covers what it includes and when a Phase II follows.

Wetland work is seasonal in many regions, and a jurisdictional determination from the U.S. Army Corps of Engineers can take time. Start it early.

• Zoning verification: confirm the current district and whether data centers are permitted by right, conditionally or not at all. A zoning verification letter from the local government helps where one is available.
• Development standards: height limits, setbacks, lot coverage, landscaping, screening and parking.
• Noise rules: applicable ordinances and property-line limits, especially near homes.
• Comprehensive plan: whether the future land use map supports industrial or data center use.
• FAA review: whether structures or cranes would require filing Form 7460-1 under 14 CFR Part 77.
• Incentives: eligibility for state or local incentives and the steps needed to apply before commitments are made.
• Approval history: how similar projects have fared before the local planning body.

• Water: confirm source, available capacity and the provider’s willingness to serve the planned cooling load. Note any need for new mains or wells.
• Wastewater: confirm discharge capacity, pretreatment rules and whether blowdown from cooling can be accepted.
• Fiber: identify carriers, distance to long-haul and metro routes, and the feasibility of two physically diverse entry paths.
• Natural gas: if on-site generation is planned, confirm pipeline proximity, pressure and the operator’s process for new taps.
• Roads: confirm that roads and bridges can carry construction traffic and heavy equipment such as transformers.

Many of these answers come as will-serve letters or carrier quotes. They are often conditional, so read the conditions carefully.

Keep a single tracker with each item, the responsible party, the date ordered, the expected date and the status. Review it weekly. When an item reveals a problem, record the cost or schedule effect and whether it can be cured, priced or negotiated.

Before the diligence period ends, the buyer needs a clear position on every item that affects value or schedule. That position becomes the basis to proceed, renegotiate, extend or terminate.

Separate findings into three groups. Cured items are resolved and need no further action. Priced items have a known cost, such as extra grading or a utility contribution, that can be reflected in the price or budget. Open items still carry uncertainty, usually around power timing or approvals. Open items drive most extension requests, so document what would close each one and how long it is expected to take.