Real Estate & Land Use

While much attention has focused on the electricity demands of AI-driven data centers, a quieter crisis is emerging around water consumption. Modern hyperscale data centers can consume between one and five million gallons of water daily for cooling systems, with some facilities using significantly more during peak operations. As tech companies announce plans to build dozens of new AI-focused campuses, communities from Arizona to Virginia are questioning whether local water resources can sustain this growth alongside residential and agricultural needs.

Carbon capture and storage (CCS) is rapidly emerging as one of the most consequential areas of energy law and environmental regulation. At its heart sits a technical but critically important regulatory category: the Class VI injection well. These wells are used to inject carbon dioxide into deep rock formations for the purpose of long-term underground storage, making them the cornerstone of any commercial-scale CCS project. For years, permitting authority for Class VI wells located in Texas rested solely with the federal Environmental Protection Agency (EPA), resulting in a process many in the energy industry found slow and uncertain.

That all changed last fall. In November 2025, the State of Texas formally received primary enforcement authority, or “primacy”, for its Class VI Underground Injection Control (UIC) program, granting the Railroad Commission of Texas (RRC) regulatory power over these types of wells and, consequently, the CCS process.

This article examines how Texas achieved this milestone, how the state strategically positioned itself for a seamless transition by accepting applications and fees years in advance, and the status of those permit applications today.

In recent years, the U.S. government has become increasingly concerned about foreign ownership of agricultural land. According to the most recent U.S. Department of Agriculture (USDA) report, foreign owners (primarily Canadian) hold an interest in nearly 45 million acres of U.S. agricultural land.

Solar developers contend with a wide array of challenges, from competing for viable project sites to combatting disinformation surrounding the expansion of clean energy development. With demand for energy rapidly growing across the nation, considering a full suite of project designs allows developers to put their best foot forward when collaborating with local stakeholders.

Although the use of a shared facilities agreement (SFA) for co-located energy projects is not a new concept, their use has increased significantly in recent years due to the rise in co-located generation, storage, and load infrastructure, particularly in the case of data centers. In general, an SFA grants each party a co-tenancy ownership interest in certain shared facilities, subject to detailed management, operations, and cost-sharing provisions, among other considerations.

Given the increasing frequency of their use, owners, operators, financing parties, and developers should understand when, why, and how SFAs can (or should) be used to avoid potential regulatory, operational, or cost-allocation issues with co-located projects.

Companies’ obligations to identify and disclose climate-related financial risks and climate data have become increasingly complex in recent years, both at the state and federal levels. The fate of federal climate disclosure rules remains unclear, with the Securities and Exchange Commission (SEC), other federal agencies, and the courts deferring action. Meanwhile, some states, such as California, are stepping in with their own robust requirements.

When the legendary writer John McPhee described a blind, over-the-shoulder basketball shot of the equally legendary Bill Bradley, he fixed on Bradley’s explanation of how he managed to score apparently without looking at the basket. Bradley simply said, “you develop a sense of where you are.” That ‘sense’ allowed him to accomplish his purpose with no immediate idea about how his goal would be affected by events around him.

Industry participants, watchers, and regulators might enquire where we are in the complex but seemingly endless process of modernizing the U.S. electric system. Is the current focus on streamlining regulatory approval processes for infrastructure development generally— and the siting and permitting of electric transmission in particular—a sign that it’s time for the easy stuff since the Rubik’s Cubes of access, planning, cost allocation, and accommodating new technology are approaching resolution? Will this in turn be followed by a surge in electric transmission grid expansion and market integration? Ironically, during the decade of debate over siting and permitting—while policymakers make corridor determinations, run steering committees, and manufacture procedural shortcuts—U.S. transmission construction has declined precipitously. Does this give confidence that we know where we are, where the grid is headed, and how the industry will get there?

As the energy landscape continues to evolve, so too does the regulatory framework governing it. Texas House Bills 3809 and 3228 introduce significant changes to the decommissioning and recycling requirements for Battery Energy Storage Facilities (“BESFs”), Solar Power Facilities, and Wind Power Facilities in Texas. This legislation, effective for agreements entered into on or after September 1, 2025, mandates specific obligations for the removal and recycling of facility components. Here’s what you need to know to ensure compliance in your lease agreements.