In a recent Fierce Network article, Carl Fleming discusses how community engagement, regulatory developments and power constraints are influencing the investment calculus for data center developers and financiers.
Drawing on his work advising clients across the energy and infrastructure sectors, including McDermott's recent representation of Copia Power in Carlyle's sale of the company to EQT, Carl explained that investors are conducting deeper diligence around stakeholder engagement, permitting pathways, utility coordination and political support before committing capital.
While investors may be able to absorb higher costs or shifts in market demand, they are placing greater value on projects that can demonstrate a credible path to execution. Developers with strong local relationships, coordinated infrastructure planning and greater certainty around approvals will therefore be better positioned to attract investment.
As Carl noted, "Certainty is increasingly becoming a competitive advantage in infrastructure development."