Data Center Site Selection in the Southeast

For this guide, the Southeast means roughly Georgia, Alabama, the Carolinas, Florida, Tennessee and neighboring areas. Most of it is not in an ISO or RTO. Vertically integrated utilities own generation, transmission and distribution, operate as or within balancing authorities, and plan their systems under state commission oversight. Parts of the wider South sit in organized markets: Virginia and some neighboring areas in PJM, and parts of Mississippi, Louisiana and Arkansas in MISO. Our guides to site selection in PJM and MISO cover those areas.

The utility mix is broad. Large investor-owned utilities serve many metro and suburban areas. Electric membership cooperatives cover large rural territories, often buying power from generation and transmission cooperatives. Municipal utilities serve many towns. In the Tennessee Valley, a federal power entity generates and transmits power that local power companies distribute, under its own rules for large loads.

Without a wholesale market to signal new supply, vertically integrated utilities add generation through integrated resource plans and, in many states, certificates of need or similar approvals. When data center demand arrives faster than the plan anticipated, the utility may need to file for new generation or contracts before it can commit to serving the load. That review takes time and is public.

Large-load contracts in the region often include terms meant to protect other customers from stranded costs: long minimum terms, minimum monthly demand charges, collateral and exit fees. Our guide to large-load tariffs and electric service agreements explains these terms. They vary by utility and change through commission proceedings, so read them for the specific utility, not the region.

• Ask whether the load fits within the utility’s current plan or would require a new filing.
• Ask what generation and transmission additions the load would trigger and their likely in-service dates.
• Understand clean-energy options, which in regulated states usually come through utility programs rather than open-market contracts.

Retail service in the Southeast is assigned by territory, and territorial laws differ by state. Some states let certain large new loads choose among eligible suppliers at the time of first service in specific areas; most assign each location to one utility. Territory lines can split a tract, which can change the power path entirely.

Interconnection is utility-led. The utility studies the load against its transmission system, scopes the substation and line work, and sets the cost and schedule. Larger campuses typically connect at 115, 161, 230 or 500 kV, depending on the system. Because one entity owns generation and transmission, the answer can come faster than in a multi-party RTO process, but it depends entirely on that utility’s capacity and priorities.

Heat and humidity are the main climate factors. Long, humid summers reduce the hours when outside air can cool a facility directly, which raises cooling energy and favors designs that rely less on economization. See our guide to climate and cooling in site selection for how that plays into design.

• Hurricanes and storm surge along the Atlantic and Gulf coasts, plus inland flooding from tropical rainfall well away from the coast.
• Tornadoes and severe thunderstorms, with frequent lightning.
• Karst geology and sinkholes in parts of Florida, Tennessee, Alabama and Georgia, which need geotechnical review.
• Large areas of mapped floodplain along rivers in the coastal plain and Piedmont.

The Southeast generally has more rainfall and surface water than the West, but that does not mean water is simple. States regulate surface and groundwater withdrawals differently, some river basins are subject to long-running allocation disputes between states, and coastal aquifers can face saltwater intrusion limits. Municipal systems may have capacity for a closed-loop design but not for heavy evaporative cooling. Discharge of cooling water blowdown also needs a permit or a utility agreement. Reclaimed water from municipal treatment plants is an option in some areas.

Large tracts of timberland and farmland are available in much of the region, and states and local economic development groups often prepare industrial sites in advance. Zoning ranges from detailed ordinances in metro counties to limited zoning in some rural ones. Wetlands are common in the coastal plain and along river bottoms, so a Section 404 screen belongs early in the review.

Fiber density centers on a few metro hubs, with Atlanta the most significant interconnection point in the region, and subsea cable landings on the Atlantic coast and in Florida. Long-haul routes follow interstates and rail lines. Rural sites need a realistic path to two diverse long-haul routes.

1. 01Confirm the serving utility and whether state territory rules give the load any choice.
2. 02Ask whether serving the load requires new generation filings and how long approval typically takes.
3. 03Read the utility’s large-load contract terms: minimum term, minimum bill, collateral and exit fees.
4. 04Screen flood, storm surge, karst and wetlands across the buildable area.
5. 05Confirm water withdrawal, municipal capacity and discharge options for the cooling design.
6. 06Map diverse fiber routes and the distance to the nearest metro interconnection point.