As artificial intelligence drives unprecedented demand for data centers, Congress is examining how America's 450,000 brownfield sites could become the foundation of the nation's AI infrastructure. In a House Energy and Commerce subcommittee hearing, lawmakers and experts outlined how contaminated industrial properties could be transformed into cutting-edge technology hubs.

"By the end of 2025 there will be over 6000 data centers built worldwide as artificial intelligence continues to take off," Chairman Morgan Griffith emphasized, highlighting the urgent need for suitable locations. With U.S. electricity demand expected to grow by 16% over the next five years, brownfield sites' existing power infrastructure makes them ideal candidates for data center development.

The Data Center Advantage

James L. Connaughton, CEO of James L. Connaughton Strategies, pointed to brownfields' unique advantages for data center development. "Many of these old thermal power plants, the old manufacturing centers... already have that intake and then discharge infrastructure. It's already been permitted in the past," he explained. "The regulators know and understand what the dynamics of these are. They tend to be locally located close to water treatment facilities and other big infrastructure. So the workforce is there, and the communities are familiar with and accept that kind of development."

Representative Carter of Georgia highlighted his state's potential, noting that "Georgia has over 50 major data centers, and many of the Brownfields have the potential to house future data centers." He emphasized that these sites often have "existing power delivery infrastructure, which is a common challenge for data centers."

A $1.5 Billion Boost and a Legacy of Success

The Infrastructure Investment and Jobs Act provided an unprecedented $1.5 billion supplemental appropriation for brownfields, fundamentally transforming the program's scope. As Chairman Morgan Griffith explained, these awards were "exempted from some of the traditional statutory limitations, such as certain maximum grant amounts and state and local cost-share requirements."

The legislation marked a significant departure from previous funding models. The awards introduced new flexibility that could help address more complex brownfield sites, which have historically been more challenging to redevelop. "The changes that were incorporated into the 2018 reauthorization bill as well as the Jobs Act have assisted with cleanup and redevelopment of more complex sites," noted Mayor Chris Bollwage.

The funding boost was substantial. EPA was previously constrained by a $90 million budget, but the new legislation allowed for larger grant amounts—increasing to $500,000 for assessments and $5 million for cleanups. This increased flexibility was crucial for communities struggling to develop more difficult brownfield sites.

"Over the last 20 years... these revitalization projects leverage nearly 280,000 jobs and more than $41 billion in economic development," noted Representative Frank Pallone, who helped write the original Brownfields law in 2002. The program's efficiency is remarkable, with Ranking Member Paul Tonko highlighting that "each dollar spent leverages more than $20."

Beyond Staffing: The Case for Regulatory Reform

Rather than simply adding more EPA staff, James L. Connaughton argued for a fundamental reimagining of the regulatory process. His core message: the current system is broken, and incremental fixes won't work. Deregulation, not additional bureaucracy, is the solution to accelerating brownfield redevelopment.

"We are not built as a nation to handle what we now want as a matter of process," Connaughton testified, presenting a radical proposal to dramatically simplify environmental reviews and permitting.

While some have suggested that simply adding more EPA staff could solve permitting delays, Connaughton presented a stark mathematical reality that challenges this assumption.

"We have a gross mismatch between the scale of what we need to get done and the number of officials we have to do it," Connaughton testified. "There's no addition of staff that will change that."

He broke down the numbers: With approximately 200,000 projects nationwide, each requiring multiple layers of review, the current system creates an impossible bottleneck. "Each project developer is hiring lawyers, Environmental Consultants and engineers, their banker is doing it too, and their insurance company is doing it too... Then it goes to the federal state level, regulators, five to 25 permits," he explained. When multiplied across all districts and states, "that's several 100,000 requirements, and that's millions of reviews. We're not built as a nation to handle what we now want as a matter of process."

Instead of simply adding more reviewers, Connaughton proposed four key reforms to fundamentally streamline the process while maintaining environmental standards:

• Authorize an automatic sign-off process for certified third-party expert site assessments
• Implement a "permit by rule" approach he calls "approve build and comply" (ABC) for pre-cleared locations and infrastructure projects
• Refocus environmental reviews on unquantified impacts, eliminating redundant analyses already covered by other laws
• Set a six-month limit on electricity grid connection decisions

"These pre-cleared locations would include areas that federal, state and tribal law have already prioritized, such as brownfields, opportunity zones, energy communities, shipyards and existing rights of way," Connaughton noted. Crucially, these reforms would maintain environmental protection while eliminating procedural roadblocks. "Projects would still have to comply with substantive environmental regulations, and any non-compliance would still remain subject to enforcement."

Success Stories and Local Impact

Mayor Chris Bollwage of Elizabeth, New Jersey, testifying as chair of the U.S. Conference of Mayors Brownfields Task Force, shared a striking example of the program's impact.

"We had a former landfill in the city of Elizabeth of almost 200 acres ... We transformed that with an initial grant of assessment into a mall that's about 200 stores, 2 million square feet, four hotels on the waterfront providing hundreds of jobs, plus 5000 construction jobs," he said. The site's annual contribution to Elizabeth's treasury jumped from $63,000 to over $7 million.

For rural communities like those in southwest Virginia, brownfield redevelopment represents more than just economic opportunity—it's about restoring community dignity. As Duane Miller poignantly testified, "When a former coal site is cleaned up and put back into productive use, it does more than remove contamination, it restores local pride, creates economic opportunity and provides a pathway for the next generation to stay and thrive in their old towns."

In Miller's region, where 80% of developable land over five acres is a brownfield site, projects like Project Intersection demonstrate the transformative potential. An abandoned mine land site was converted into an industrial park, securing over $30 million in development funds and attracting prospects that will create 350 jobs—a number that might seem small to urban areas, but represents a "big league" opportunity for rural communities.

The potential for innovative projects is significant. Miller noted that in a feasibility study for small modular reactors (SMRs), six of seven potential sites were on brownfield areas, with all seven sites scoring above average on nationwide siting criteria for advanced nuclear development.

"There's really no development we can do, whether in downtown districts or larger economic development projects within our region, without reaching into the Brownfields pot," Miller explained, highlighting the program's critical importance to economic survival in these areas.

The Urban-Rural Connection

The hearing revealed how brownfields affect communities across the urban-rural divide. In Houston, America's largest geographic land bank is transforming abandoned properties into community assets. "Unlike many major cities, Houston has no zoning laws, meaning that industrial sites often sit directly next to homes, schools and community centers," explained Krista Stoneham, CEO of the Houston Land Bank.

In rural Virginia, these sites represent rare opportunities for development. "These sites, often the only developable flat eight bridge in a locality of very mountainous and sloped terrain, become viable location for manufacturers, small businesses, and even a plethora of possible renewable energy and data center projects," testified Duane Miller from the LENOWISCO Planning District Commission.

Miller noted that while some rural areas may lack sufficient power supply for data centers, brownfields present opportunities for innovative solutions, including "small modular reactors, micro hydrogen, or any of those other types of forms that you could then use to provide power to these data centers."

Funding Concerns and Future Challenges

Despite broad bipartisan support, several lawmakers expressed concern about potential EPA budget cuts and staffing challenges. The U.S. Conference of Mayors is recommending funding levels of $250-300 million per year for the next five years, along with increased grant amounts of $5-10 million and broader application flexibility.

As the program's current authorization approaches expiration in fiscal year 2026, Congress faces the task of not just reauthorizing but potentially transforming this crucial initiative. "Growing our economy to meet the needs of a thriving population and national security will require a doubling, or even a tripling of infrastructure over the next 25 years," Connaughton testified. "The hundreds of thousands of America's brownfields are the best place to start driving innovation, unleashing prosperity and revitalizing our communities."

With the program's authorization set to expire in fiscal year 2026, Congress faces the challenge of modernizing the brownfields program to meet the demands of the AI era while maintaining its core environmental mission. As Representative Guthrie noted, the program must balance "aiding economic development while prioritizing environmental contamination."

Industry professionals and environmental experts will gather to discuss the latest developments in  environmental remediation at the upcoming RemTEC & Emerging Contaminants Summit, scheduled for October 14-16, 2025. Registration for the event, which draws environmental remediation engineers, restoration project managers, and other environmental professionals from across the country, opens soon at remediation-technology.com.