Insights from Jim Connaughton’s Congressional Testimony
Let’s talk about brownfields—because if we don’t, we’re leaving billions of dollars in economic opportunity sitting on land that could (and should) be powering AI-driven data centers, next-gen semiconductor manufacturing, and sustainable energy hubs. These aren’t rusting relics of the past—they’re the foundation of our future.
Jim Connaughton, former CEO of Nautilus Data Technologies, recently took the hot seat in front of Congress to make a case for turning environmental red tape into green-lit innovation. The problem? It’s not technology, funding, or lack of vision holding us back. It’s outdated permitting processes and regulatory bottlenecks that are strangling momentum before projects even begin.
This is a wake-up call for data center operators, energy leaders, and anyone invested in industrial growth. The opportunity is massive—but only if we move past 20th-century bureaucracy and into a build-first, enforce-later era.
The Scale of the Opportunity: Brownfields Are the Low-Hanging Fruit
We’re in the middle of an infrastructure explosion. Over the next 25 years, the U.S. needs to double or even triple its capacity in energy production, AI computing, manufacturing, and logistics. That means hundreds of thousands of new industrial projects. So where do we put all of this? Brownfields.
“Hundreds of thousands of America’s brownfields are the best place to start having innovation, unleashing prosperity, and revitalizing our communities.” – Jim Connaughton
Brownfields already have power connections, water access, transportation links, and industrial zoning. They’re often in prime locations near population centers. They’re just waiting for the right policies to unlock them. But instead of turning them into data centers, AI campuses, and high-density compute hubs, they’re collecting dust because of regulatory gridlock.
Connaughton outlined four major obstacles keeping these sites locked up—and what we need to do to change that.
The Problem: Bureaucracy is the Biggest Roadblock
Right now, redeveloping a brownfield takes years—sometimes decades. Not because of environmental risks, but because of government delays. Connaughton zeroed in on four key bottlenecks:
- Environmental site assessments take too long – Even after certified environmental experts clear a site, agencies sit on approvals for months or years.
- Permitting is outdated and redundant – Critical projects are forced to navigate a maze of federal, state, and local approvals before breaking ground.
- NEPA (National Environmental Policy Act) reviews are unnecessary and redundant – Most environmental impacts are already regulated by other laws, yet projects must still go through additional layers of reviews.
- Energy grid interconnection is a five-year nightmare – Even if a project gets through permitting, it can still sit in limbo for years waiting for grid access.
The Fix: Move First, Enforce After
This is where Connaughton drops the real game-changer: stop forcing developers to wait years for approvals. Let them build first, then enforce compliance later. Right now, the system is set up backwards:
- Developers spend years in permitting before even getting the green light to start.
- Regulators spend 99% of their time reviewing projects that would comply anyway.
- The projects that never get built? We don’t even talk about them because they die before they start.
“The biggest risk to brownfield redevelopment are all the projects that never get built—that we don’t talk about—because they die on the vine. That’s why these permitting reforms are so vital.” – Jim Connaughton
So what’s the fix? Flip the model. Approve development first, then enforce compliance.
1. Site Assessments: Trust the Experts, Cut the Wait Times
The private sector already knows how to do this. Certified environmental experts can assess sites faster, cheaper, and more accurately than government agencies. Yet their reports sit on desks for months or years waiting for approval.
💡 Solution: Automatic Sign-Off Process
“Work is now performed quickly and cost-effectively by credentialed private-sector experts using well-established methods developed over 30 years and tens of thousands of projects. Congress should authorize an automatic sign-off process for certified third-party expert site assessments.” – Jim Connaughton
2. Environmental Permitting: Approve Now, Monitor After
Instead of forcing projects through years of permitting, Congress should adopt Connaughton’s “Approve, Build, and Comply (ABC) model”:
- Pre-clear brownfield sites for industrial redevelopment.
- Categorically approve projects that meet certain environmental criteria.
- Let projects move forward immediately while still enforcing environmental regulations after.
“I’m recommending that Congress legislate a ‘permit by rule’ approach that I call ‘Approve, Build, and Comply’ or ABC. This would categorically approve a list of pre-cleared locations and project types, eliminating redundant permitting.” – Jim Connaughton
3. NEPA Reform: Stop Repeating What’s Already Regulated
NEPA reviews made sense in 1970, when we didn’t have modern environmental laws. But today, everything from air quality to wildlife impacts is already covered under federal and state laws. Yet we still waste years re-reviewing the same data.
💡 Solution: NEPA Should Only Cover What Isn’t Already Regulated
“We should clarify that any environmental impacts that are already regulated under another law should not require redundant analysis and evaluation under NEPA.” – Jim Connaughton
4. Energy Grid Interconnection: Stop Making Projects Wait Five Years
This is one of the biggest threats to data center expansion. Right now, projects sit on hold for five years just waiting to connect to the grid. That’s unacceptable.
💡 Solution: Federal Law Should Mandate a Six-Month Interconnection Deadline
“Imagine if that was your home, your school, or your hospital. Five years before you can connect to the grid. Congress should set a six-month limit on interconnection decisions.” – Jim Connaughton
How Nautilus Proved This Model Works
Connaughton isn’t just proposing theory—he’s done this in real life. At Nautilus Data Technologies, he helped build the world’s first water-cooled data center at the Port of Stockton, CA—a brownfield redevelopment project that was environmentally friendly, energy efficient, and community-driven.
Yet, even though it had no environmental impact, the project took three and a half years to get regulatory approval.
“Even though our state NEPA review only took nine months because we had no negative impacts, it still took three and a half years to get signed off on the federal NEPA.” – Jim Connaughton
This is exactly the type of delay that kills projects before they even start. If Nautilus had been allowed to move forward immediately, with compliance enforcement in place, the project could have been built in a fraction of the time.
Final Takeaway: We Need to Build at the Speed of the Need
Connaughton’s message is clear:
- We don’t need weaker regulations—we need smarter enforcement.
- Let developers build, then hold them accountable for compliance.
- If we don’t fix this system, we will miss out on an entire generation of infrastructure projects.
“We have the land, we have the technology, and we have the investment appetite. Now, it’s time for policy to catch up.” – Jim Connaughton
