AI, Energy, and the Permitting Bottleneck: Why the U.S. Risks Falling Behind

Artificial intelligence is often described as the new space race. But unlike the Apollo era, the finish line won’t be measured in rocket launches — it will be measured in data centers.

A recent Fortune article highlighted how China is pulling ahead in building massive data centers, while U.S. projects stall under grid strain and permitting delays. The takeaway is clear: this isn’t just about cloud storage and AI chatbots. It’s about national security, economic competitiveness, and the infrastructure that will decide who leads the AI revolution.

And while there are many barriers — political headwinds, local opposition, supply chain gaps — one critical chokepoint deserves some attention: environmental permitting.

China’s Head Start

China is outpacing the U.S. in data center development, fueled by state-backed investment and an aggressive build-out of both grid and generation infrastructure. There is no denying it, AI leadership is a national strategy: whoever controls AI capacity shapes the future of defense, finance, and global influence.

The U.S. has no shortage of innovation or private capital. What we lack is the ability to deliver infrastructure at the speed required. Data centers don’t run on ambition alone — they run on megawatts and water. And right now, our grid isn’t keeping up.

The U.S. Challenge: Grid, Politics, and Permitting

Every data center needs vast amounts of power — sometimes equal to a mid-size city. Meeting that demand requires new generation, transmission, and storage. Yet in the U.S., these projects routinely stall.

Some of the roadblocks are political — debates over fossil fuels vs. renewables. Others are local — opposition to siting near communities or farmland. But time and again, I’ve seen environmental permitting be the difference between a smooth project and one stuck in limbo.

Permitting reviews extend far beyond paperwork. They include compliance with the Endangered Species Act, delineation of wetlands and Waters of the U.S., surveys for historic and cultural resources, and environmental due diligence such as Phase I Environmental Site Assessments (Phase I ESAs).

These aren’t minor steps — they shape project design, timelines, and even feasibility. When they’re handled proactively, they clear the way. When they’re left as an afterthought, they can trigger years of delay. 

Worse, poor timing of environmental review can expose binary risks that render a project undevelopable from a cost or permitting standpoint—often after large sums have already been spent on interconnection studies, engineering, and land. Early environmental work would catch these risks before major investments are made.

Why an All-of-the-Above Energy Strategy Matters

If the U.S. wants to remain competitive, it needs an energy strategy that matches the scale of the challenge. That means embracing an all-of-the-above approach: renewables, transmission, storage, and transitional resources.

A fossil-fuel-only mindset simply can’t meet the explosive demand data centers and AI are placing on the grid. Nor can a renewables-only approach without streamlined permitting and grid modernization. The answer isn’t choosing sides — it’s building capacity wherever it’s viable, while protecting the environment through smart environmental review and early consultation.

Where Environmental Consulting Fits

This is where environmental permitting becomes a decisive factor. Too often, environmental review is treated as a box to check once designs are finalized. By then, it’s too late — the project is already exposed to risk.

A strong consultant does three things differently:

1. Spots landmines early

   • Endangered species habitat and USFWS consultation needs.

   • Wetlands and WOTUS determinations under Section 404.

   • Karst features and geologic hazards that may trigger permitting or engineering needs.

   • Historic and cultural resources requiring state or tribal coordination.

   • Contamination or PFAS plumes identified through Phase I ESA and follow-up investigations.

     
     

2. Moves quickly without cutting corners

   • Coordinating with agencies proactively.

   • Identifying permit triggers before they’re tripped.

   • Advising on avoidance and mitigation strategies to prevent costly redesigns.

     
     

3. Builds smarter, not slower

   • Aligning site selection with environmental realities.

   • Reducing redesigns and permitting delays.

   • Helping developers keep timelines and budgets intact.

     
     

Designing to Avoid Impacts

One of the most important benefits of early environmental review is that it allows the project team to design in a way that avoids or minimizes impacts on sensitive resources. Identifying constraints up front means engineers and planners can steer projects around wetlands, endangered species habitat, historic and cultural sites, or karst features rather than discovering them too late. This not only lessens environmental impacts but can also reduce the number or scope of permits required.

A good consultant doesn’t just point out problems — they collaborate with the project team to flag sensitive areas and potential permitting triggers. By designing around those constraints early, developers save both time and money, while protecting resources and keeping the project on track.

Whether it’s a 500-acre solar farm or a billion-dollar data center, the principle is the same: environmental risks don’t go away if ignored — they only get more expensive.

A Consultant’s Lens

During my career as a consultant and on the client side, I saw projects rise or fall on how early environmental risks were brought into the conversation.

When environmental review was integrated up front — wetlands delineated, cultural resource surveys completed, karst features mapped, species habitat confirmed — projects sailed through permitting and stayed on schedule.

When it wasn’t, landmines emerged midstream: a cave that required a closure plan, a wetland that triggered federal review, a contaminated parcel that forced a redesign.

The same lessons apply today to energy infrastructure and data centers. If the U.S. wants to remain the AI leader, we must build smarter, faster — and that means permitting has to move from the back of the line to the front of the strategy.

Final Thought

The race for AI leadership isn’t just about algorithms — it’s about infrastructure. And infrastructure lives or dies on permitting.

Our competitors are moving fast. The U.S. can too — but only if we balance politics, local concerns, and environmental review with a smarter, more proactive approach.

Great teams don’t treat permitting as an afterthought. They use it to shape strategy. That’s how projects avoid landmines, comply with the Endangered Species Act and Clean Water Act, protect cultural resources, and keep pace with global competition.

If you’re working on siting or permitting a data center or renewables project, let’s talk about how to de-risk the path forward.