Data Center Energy Infrastructure: Federal Permit Requirements

A data center is a physical facility that houses computer systems for managing and transmitting data. The federal government has been pursuing policies to promote data center development, particularly for artificial intelligence (AI), a “critical and emerging technology” with data storage and processing requirements. On July 23, 2025, the Trump Administration announced the release of “Winning the AI Race: America’s AI Action Plan,” which includes among its key provisions “promoting rapid buildout of data centers.” Demand for data storage and processing capacities, especially for AI deployment, has led to the development of “hyperscale” data centers, which contain thousands of computer servers in very large, warehouse-like facilities. The growth of data centers—and their associated electricity demand—suggest that significant additional generation will be required to power them. A 2024 Department of Energy study projected that data center electricity consumption would rise from 176 terawatt-hours (TWh) in 2023 to between 325 and 580 TWh by 2028. To ensure access to long-term electricity supplies, developers of data centers are pursuing a range of facility configurations, energy technologies, and third-party contractual arrangements with electricity generators and electric utilities. Data centers require permits for their construction—including permits for energy infrastructure, such as electric grid connections, on-site electricity generation, and backup electricity facilities. They may also require permits for connections to natural gas pipelines and pipelines for carbon capture and sequestration. Projects developed off-site to serve data center electricity demand—such as power plants, pipelines, or carbon sequestration sites—also have permit requirements. Notwithstanding their energy intensity, individual data centers have a discrete footprint, typically falling under state and local siting jurisdiction. Some federal approvals may still apply. Depending on their configuration and location, energy infrastructure projects may need permits, authorizations, or reviews under various federal statutes. Specific types of electricity generation may require permits directly from the Federal Energy Regulatory Commission (FERC), the Nuclear Regulatory Commission (NRC), or the U.S. Army Corps of Engineers (Corps). In addition, FERC’s authorities over electric transmission may more broadly affect the grid interconnection of new generation and data centers. New natural gas pipeline connections to supply fuel for electricity generation could also require FERC approval. Building infrastructure on or through federal lands or waters generally requires authorization from the federal agency responsible for administering those lands or waters. In addition, energy infrastructure for data center projects may require permits, approvals, or reviews from state, tribal, and local agencies under delegated federal authority. Relevant requirements may fall under the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, and the Coastal Zone Management Act. State requirements under these statutes may apply more broadly to data center energy infrastructure than federal agency approvals. The U.S. data center industry has, thus far, procured adequate electricity supplies. Building the energy infrastructure it could need for expansion may become more difficult as data centers grow in number and size. Understanding the extent to which federal permit requirements may affect data center expansion requires clarity about federal jurisdiction. The federal permitting nexus varies across projects, and no universal federal requirement or process applies across all project types. Various approvals under federal law may warrant particular attention in broader congressional initiatives around “permitting reform.” Bills such as the SPEED Act (H.R. 4776), the ePermit Act (H.R. 4503), and the PERMIT Act (H.R. 3898), among others, could affect federal permits for certain data center energy infrastructure. If Congress implements overarching reforms, those reforms could impact data center energy infrastructure along with energy infrastructure more broadly. However, if Congress views developing energy infrastructure for data centers as a distinctive national priority, it could consider changes in federal permitting laws specific to this infrastructure. The Securing Reliable Power for Advanced Technologies Act (H.R. 5927) would accelerate the development of energy infrastructure serving “critical artificial intelligence infrastructure.” The Clean Cloud Act of 2025 (S. 1475) would give federal agencies authority to collect electricity-related information specifically from data centers and their energy suppliers. Alternatively, Congress could preserve the statutory status quo while monitoring data center energy development. Given the diversity of proposed data center projects and energy facilities, understanding how legislative proposals such as H.R. 5927 might affect specific types of energy infrastructure could be of particular interest to Congress.