Balch & Bingham
Steven Burns is a partner in Balch & Bingham’s Environmental & Natural Resources Practice. He advises private utilities, electric cooperatives, public power, and other businesses on coal ash, waste and contamination, waterways, environmental justice, air and water quality, wetlands, protected species, and natural resources.
Jesse Unkenholz is a partner in Balch & Bingham’s Energy Practice. He advises clients across the electric industry with a focus on renewable energy generation, battery energy storage, and thermal generation. His experience with data center developers, owners, and operators includes development agreement, power purchase and sales, on-site generation development, and related real estate matters.
Grace Hembree is an attorney in Balch & Bingham’s Environmental & Natural Resources Practice. She represents industrial clients, utilities, and other business interests in state and federal environmental matters, including issues involving the Clean Water Act (CWA), the Resource Conservation and Recovery Act (RCRA), and coal ash.
A water-intensive facility is proposed in the arid Southwest or a groundwater-dependent region of Texas, stoking fears of water shortages. Residents learn of a proposed industrial facility and organize public opposition based on fears of environmental impacts and higher electricity costs.
A utility delays retirement of older oil- or coal-fired units and dispatches less efficient generation sources to meet rising power demands, fueling air quality and environmental justice concerns.
What do these scenarios have in common? Data centers.
Unlike so many debates on artificial intelligence (AI), these issues are not theoretical or futuristic. They are happening now. The impacts extend well beyond the virtual economy and directly affect water supplies, power delivery, permitting timelines, and local activism.
Any company that manages energy use, infrastructure, public affairs, or environmental compliance would be wise to account for these developments into its strategy to position itself to navigate emerging risks and stay ahead of potential constraints on resources. Here are just a few of the considerations, followed by five strategies for companies to help protect themselves with vigilance and targeted action.