The New Rules Of Site Selection

Summary

Site selection in 2026 has shifted from a careful, methodical process to a high-stakes scramble. CEOs and site teams now face five converging constraints—energy availability, scarce affordable talent, tariff and trade uncertainty, the uncertain impact of AI, and hard infrastructure limits—that make previously reliable assumptions obsolete. The best shovel-ready sites are disappearing quickly, power lead times (and transformer waits) are measured in years, and workforce and water issues can quietly derail the fastest plans. The article lays out the five forces reshaping location strategy, a practical decision framework, and behaviours that distinguish the best CEO decision-makers.

Key Points

Energy availability is now the primary gatekeeper—utilities are oversubscribed and transformer lead times can be up to 36 months.
Organisations are facing a premium on skilled and middle-skill labour; recruiting and retention costs have risen substantially.
Tariff uncertainty and potential USMCA renegotiation force companies to build supply-chain optionality and avoid single-country dependence.
AI’s effect on space and workforce is still unclear; plan flexible footprints that can expand or contract depending on adoption.
Infrastructure (rail, water, highways, permitting) and community opposition are hidden timeline killers that require deep, local due diligence.
Companies are increasingly considering on-site generation (fuel cells, turbines, SMRs) or splitting facilities to mitigate grid constraints.
Best practice now: define true constraints, preserve multiple site options, scenario-plan for different futures, and verify incentives and utility commitments.
Great CEOs trust expert teams but verify at key stages—visit sites, meet utilities, interview local employers, and weigh must-haves vs nice-to-haves.

Content Summary

Greg Elliott’s experience losing a Plano site offer highlights how competitive site markets have become. The article explains five forces that are rewriting site selection: energy constraints (grid capacity, transformer lead times, and creative behind-the-meter solutions), a shortage of affordable skilled labour, tariff volatility and trade renegotiation risks, uncertain AI impacts on space and roles, and infrastructure realities like rail scarcity, water stress and permitting delays.

CEOs are advised to change their approach: make electricity availability a contractual requirement, prioritise hiring and workforce diligence early, build supply-chain optionality, design flexible facilities that can adapt to AI-driven productivity changes, and run deep local due diligence on utilities, community sentiment and permitting timelines. The piece finishes with a practical decision framework and behavioural lessons—assemble the right team, be involved at the semi-finalist stage, and separate must-haves from nice-to-haves.

Context and Relevance

This is essential reading for CEOs, COOs and real-estate or operations leaders planning expansions or new facilities. It ties current macro trends—AI-driven data-centre demand, shifts in global trade, ageing transmission infrastructure and post-pandemic supply-chain realignments—directly to where you should or should not build. For manufacturers, data-centre investors and distribution networks, the piece reframes site selection as a strategic battleground where power and talent—not just incentives—decide winners and losers.

Why should I read this?

Short version: if you’re planning to open, expand or relocate anything in the next few years, this saves you from rookie mistakes. It tells you what will actually stop a project (no, it’s not just taxes) and how to avoid getting stuck waiting for power, people or permits. Read it so you don’t learn the hard way like Greg did.

Author’s take

Punchy and practical: the article is a wake-up call. Site selection has become strategic, not just tactical. If you treat location as a checkbox, you’ll lose deals, time and money. If this is on your roadmap for 2026–27, read the full piece and rebuild your checklist around power, people and flexibility.