The conversation examines how developers can conduct environmental due diligence, navigate brownfield programs that provide liability protections, manage post-closing obligations and structure transactions to allocate contamination risk appropriately.

The episode also covers community and government engagement, water scarcity issues in Texas, the potential use of produced water for data center cooling and key federal and state policy developments developers should monitor.

Their conversation covers the financing structures being used for data center development — from traditional project finance and private credit to private placements, ABS and CMBS. They also dig into what lenders require from offtake agreements, lease terms and power

arrangements to get a deal done.

They also examine how lenders assess construction risk, project-on-project risk and GPU obsolescence, as well as behind-the-meter power solutions, interconnection delays and the growing role of hyperscalers in supporting data center and generation projects.

development.

Josh explains FERC’s role in regulating wholesale power markets and interstate transmission through regional transmission organizations and independent system operators, while states maintain authority over generation siting and retail electricity sales. The discussion also highlights emerging policy reforms, including a US Department of Energy directive asking FERC to consider standardized processes for large-load interconnections and approaches to allocating grid upgrade costs associated with new data center demand.

The conversation covers a range of topics, including:

• the operational alignment between
• nuclear generation and high-load data centers emerging partnerships between tech companies and nuclear operators     
• Nuclear Regulatory Commission (NRC) licensing reforms
• fuel supply constraints
• safety considerations

Scott and Tamara look at the drivers behind this migration — including land availability, speed to power, regulatory certainty and grid reliability — as well as the growing pushback from communities concerned about energy prices, water usage and land preservation. They discuss the growing importance of regulatory certainty, land-use considerations and affordable electricity as communities evaluate the potential impacts of large-load development.

The group compares ERCOT’s energy-only market and recent Senate Bill 6 reforms with more traditional ISO/RTO markets, highlighting regulatory uncertainty, cost allocation debates and the growing role of co-located generation.

They dive into Texas Senate Bill 6, exploring how it seeks to standardize interconnection requirements, improve transparency, address cost allocation and enhance grid reliability following Winter Storm Uri. The conversation also examines emerging solutions that are poised to reshape how large loads plan, finance and secure power in Texas.