Brownfields: The Next Frontier for Data Centers and Industrial Innovation

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 It’s outdated permitting processes and regulatory bottlenecks that are strangling momentum before projects even begin.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.

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:

  1. Environmental site assessments take too long – Even after certified environmental experts clear a site, agencies sit on approvals for months or years.
  2. Permitting is outdated and redundant – Critical projects are forced to navigate a maze of federal, state, and local approvals before breaking ground.
  3. 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.
  4. 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.

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

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.

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

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

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.

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.

Click here to watch Jim Connaughton’s full testimony.

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