AI data centers face local-approval hurdles as equipment financing moves closer to revenue

AI data-center projects still face local regulatory and community-approval hurdles. Potential ways to build support include tax revenue and direct payments, but Blue Owl said it does not have a definitive answer on which approach works consistently and that all relevant constituencies need to be engaged.

Equipment financing generally begins after a data center’s powered shell is already operating or near operation. In the transactions described, compute can come online within a couple of weeks after funding, placing financing close to the point where revenue is generated.

The financing can also cover post-retrofit upgrades at existing facilities, including replacing equipment with newer chips such as Blackwell.