It’s one of the most pressing challenges facing communities across the United States: infrastructure readiness. What’s really at stake in the world of pipelines, utilities and energy grids – and how is it impacting site selection?
At the Site Selectors Guild 2025 Annual Conference, leading site selectors came together for the panel “Infrastructure, Energy, and Water, Oh My!” to answer this question. Here’s what Guild members Michelle Comerford, Brad Lindquist, Sarah White, Gary Yates and Johan Beukema had to say.
The Evolving Landscape of Site Selection
As companies expand, accelerate automation and shift to more resource-intensive operations, potential bottlenecks in power, water, natural gas and wastewater capacity are becoming greater concerns in the eyes of corporate decision-makers.
Put simply, infrastructure is now a key factor in the site selection process.
Overall, the site selectors agreed that they are seeing new projects and expansions with higher capacity requests than ever before. Meanwhile, many companies are requesting additional capacity for their existing sites.
In both cases, community leaders must invest in infrastructure to accommodate newcomers while also ensuring business retention.
Electricity: The New Dealbreaker
The panel cited a key finding from the State of Site Selection 2024: electric power capacity is now the No. 1 factor impacting industrial projects. Whether it’s a data center, pharmaceutical plant or automated warehouse, today’s facilities consume vast amounts of energy. As such, projects are increasingly “chasing the power” in the age of AI and advanced technology – often exceeding a community’s labor pool or tax incentives.
With this surge in electricity demand comes a host of new challenges. Data centers can monopolize grid access. A lack of local cooperation can prevent the best use of current capacity, while regulatory hurdles can impede growth in new capacity.
In particular, the consultants stressed that long lead times for energy utilities can make or break a project’s viability. Very few companies will invest in a location that takes 4-5 years to get its electricity operational.
Guild members also emphasized the importance of communication. When site selection consultants send a request for information (RFI) to a location, they will ask a bevy of targeted questions based on their client’s exact power needs, such as: “What is the distance for a primary service line extension to a site? Who pays the cost? Is the market regulated or deregulated? Are there green energy options?” Having this information for all sites in a community is critical.
Communities that provide timely, high-quality information for these data points prove two things: first, that they have the capacity to handle the project at-hand; second, that there’s an active partnership between local leaders and utility providers. Both qualities are vital for a project to succeed.
Water: A Major Differentiator
Water access and quality are widespread issues – currently, the United States earns a ‘C-’ grade for its water infrastructure. Yet the site selection consultants also noted that water is hyper-local, serving as a regional differentiator in the site selection landscape.
Across diverse geographies, factors such as water availability, surface water quality, groundwater quality and ecology can encourage or inhibit economic growth. Each location has its own water system and engineering, with distinct capacities for treatment, storage, peak load and last-mile usage. The age of a community’s infrastructure also makes a substantial difference.
A location’s water profile needs to also align with the demands of each project. Data centers, manufacturing sites, chemical refineries, food and beverage facilities, life sciences hubs and distribution centers have different specifications for water supply, quality, pressure and more. Like electricity, sharing this data with potential investors is crucial.
Faced with water-related challenges, many communities are becoming more selective in pursuing companies and industries whose water requirements align with their own civic priorities. The emerging paradigm is an approach that balances economic development with long-term sustainability and well-being.
And if upgrades are needed, the consultants stressed that the cheapest time to build water infrastructure is today – not tomorrow.
Natural Gas: Opportunity Amid Uncertainty
For many industrial operations, natural gas remains an important energy source. In fact, its demand is increasing for production processes, equipment and power generation for electricity.
However, challenges persist with natural gas. Availability can be inconsistent in some areas, whether due to geographical restraints or local energy policy. Additional volatility has entered natural gas markets like those in Europe, contributing to increased uncertainty.
This uncertainty makes it even more important for communities to deliver transparent, comprehensive information about their capacity and willingness to support a project utilizing natural gas. Line size, extension plans, interstate pipeline access, market regulation, rate schedules and maps of service lines – along with community buy-in – should all factor into the equation.
Wastewater: Seeking Proactive Solutions
Rounding out the discussion, the Guild members focused on wastewater as a common bottleneck in site location decisions. This can particularly ring true for rural communities. Moreover, mismatches can occur between a community’s water systems and wastewater management capacity.
The site selectors highlighted the importance of proactive planning and preventative measures to ensure the speedy delivery of wastewater infrastructure – and to avoid facing moratoriums. Using gray water for non-consumptive purposes was also discussed as a sustainable solution to harmonize water and wastewater systems.
Like other types of infrastructure, the panel pinpointed wastewater data that can help companies choose a location, among them, system capacity, upgrade plans, acceptable levels of pollutants and water treatment costs.
Best Practices: What Competitive Communities are Doing Right
What are the key takeaways for economic development organizations? The Guild members made it clear: if you can’t deliver information about a site’s infrastructure quickly and transparently, you may be putting your community out of the running before the conversation truly begins.
To that end, the consultants shared several calls-to-action for community leaders and stakeholders looking to position their infrastructure as an asset, not a liability:
Be proactive. Prepare detailed, site-specific infrastructure data ahead of RFIs. Don’t rely on “yes/no” answers to companies’ questions – be ready to share your line sizes, rate structures, system maps and more.
Be collaborative. Hold regular meetings with all utility partners in your region to align strategies. Coordinate with local companies on peak usage and maintenance scheduling to optimize shared capacity.
Be strategic. Know what your community doesn’t want – and make it a priority to express that. Market your sites based on real strengths, not wishful thinking. Consider brownfield redevelopment to capitalize on existing infrastructure. Invest now in expansion projects, especially for water and wastewater, so you’re ready when opportunity knocks.
Want to learn more? Stay tuned for insights on site selection trends by signing up for the Guild’s e-newsletter here.