Data center megaprojects meet new limits on power, water and noise

By Grace Kim

Construction Dive reported that California Gov. Gavin Newsom signed seven bills on Monday requiring data-center developers to disclose energy and water use. The laws also require developers to pay more for grid infrastructure and undergo environmental review. Those changes arrived amid accelerating spending and continued multibillion-dollar data-center builds, which dominated builders’ attention over the last month.

Virginia Gov. Abigail Spanberger also issued an executive order limiting state assistance and expedited permitting. An attorney told Construction Dive that the order’s biggest consequences remain unknown. The uncertainty leaves one central question for the industry.

What do the new limits change for data-center builders?

Construction Dive’s developments point to more scrutiny at the state level. California now requires disclosure, grid contributions and environmental review for data-center developers. Virginia has limited state assistance and expedited permitting, while Texas has taken steps intended to slow the pace of development.

An executive search professional described the Texas action as a “wake-up call” for teams building data centers. The roundup did not name the executive or detail the measure. For builders, these rules put power availability, water use and permitting into early site planning rather than later compliance work.

The projects remain central to the artificial-intelligence buildout, Construction Dive said, even as state restrictions and design demands change. Community opposition may have another answer: a U.S. Green Building Council executive said at the 2026 Greenbuild conference that sustainable construction and operations might alleviate pushback against data centers. That suggestion moves the discussion beyond mitigation walls and toward how the buildings operate.

Noise has become a visible design issue. Some walls would need to reach 4.5 feet thick to muffle the noise coming from data centers. Kasey Fowler-Finn of Saint Louis University said: “Ultra-thick walls aren’t practical, so setbacks should be at least 1,500 feet.” The proposal makes land around the facility part of the acoustic design.

The construction market is also changing. A contract win for a Tutor Perini subsidiary reflects the heavy civil contractor’s priority shift toward data centers. Tutor Perini emphasized that shift on recent earnings calls, according to Construction Dive.

Power buyers are making longer commitments. Constellation Energy signed 20-year power purchase agreements with both Google and Amazon in the last week. Construction Dive said the agreements support almost 1.1 GW of nuclear expansions.

Matt Landek, who served as global president of data centers and critical environments at JLL, was hired as president and CEO of L5 Mission Critical. The appointment places a former JLL leader at the helm of L5 Mission Critical.

Construction Dive’s wider roundup also included Turner delivering a $29 million substance use treatment center. CMAA named a new CEO, and a British engineering firm entered the U.S. market.

Construction Dive’s reporting points to a practical agenda for data-center teams: price grid upgrades, document water and energy demand, plan for environmental review and model noise at the site. Hyperscalers will continue pursuing multibillion-dollar builds, but state restrictions make permission, infrastructure and local compatibility central to the next phase.