Explore answers to common questions below. Because every project is different, communities should also request site-specific information before drawing conclusions about a proposed development.
A data center is a physical facility that houses servers, storage systems and networking equipment. These systems store, process and move the digital information used for services such as online banking, healthcare records, cloud computing, streaming, video calls and artificial intelligence.
Demand is growing for cloud services, artificial intelligence, digital business tools, streaming, healthcare technology and other online services. Developers are also looking beyond established data center markets as they search for available power, land and network connectivity.
Electricity use depends on the facility’s size, equipment and purpose. Large campuses can require substantial amounts of power, especially when developed in several phases.
Communities should ask for expected electricity demand at opening, during each phase and at full buildout, along with information about required utility upgrades and who will pay for them.
That depends on the project, the utility and the local electric system.
Important questions include whether new transmission lines, substations or generation will be needed, how those costs will be allocated and what protections are in place for existing customers.
Water use varies widely based on the cooling system, climate and facility design. Some data centers use water for cooling, while others rely more heavily on air cooling, closed-loop systems or reclaimed water.
Communities should request project-specific estimates for average use, peak use and full buildout.
They can. Cooling equipment, transformers, substations and backup generators may produce sound during normal operations or testing.
Communities may want to request an independent acoustical study that considers nearby homes, schools and other sensitive locations, as well as the cumulative impact of future phases.
Construction may involve truck traffic, road closures, noise, dust, lighting, grading and large equipment deliveries. On a phased campus, construction can continue for several years.
A construction-management plan should explain work hours, truck routes, road repairs, dust control and how concerns will be addressed.
Data centers can support significant temporary construction employment, while the number of permanent operating jobs is often smaller.
Communities should ask developers to separate construction jobs, permanent positions and contract roles, and to provide information about wages, qualifications and local hiring.
Potential tax revenue depends on local tax rates, the value of the property and equipment, depreciation and any exemptions or incentives.
Local leaders should compare projected revenue with the value of incentives and the public cost of roads, utilities, emergency services and other infrastructure.
Some states and local governments offer sales-tax exemptions, reduced equipment taxes or other incentives to attract data center investment.
Communities should ask how much the incentive is worth, how long it will last, what the company must provide in return and whether benefits can be recovered if commitments are not met.
Construction traffic may increase wear on roads and create congestion near the project. Larger developments may also require new utility infrastructure, intersections or emergency-service capacity.
Communities should understand which improvements are needed, when they will be completed and who will pay for them.
Questions may involve tree removal, wetlands, streams, stormwater, air emissions, water use, energy sources, wildlife habitat, lighting and equipment disposal.
The appropriate review will depend on the site and the project, so communities should request relevant environmental studies rather than relying only on general assurances.
There is no single distance that works for every project. Appropriate setbacks depend on building size, noise sources, backup generators, utility equipment, landscaping and local land-use conditions.
Communities may want to consider larger setbacks, preserved tree buffers and the placement of mechanical equipment away from sensitive properties.
Communities should have enough information to understand the project’s full buildout, electricity and water needs, construction plans, noise, economic impact, environmental considerations and proposed community benefits.
Information should be provided early enough for residents and public officials to review it before major decisions are made.
Residents can attend public meetings, review planning documents, submit written comments and ask local officials how and when decisions will be made.
It is often helpful to ask specific questions and request written, project-level information rather than relying on broad claims for or against data centers.
Information should be provided early enough for residents and public officials to review it before major decisions are made.
A better-neighbor approach includes early communication, honest answers, thoughtful site design, reduced avoidable impacts, responsive complaint handling and investment tied to real community priorities.
Long-term reporting and accountability are also important because a facility may operate for decades.
Commitments are stronger when they are specific, written, measurable and incorporated into enforceable agreements where permitted by law.
Communities should also ask who will track progress, how results will be reported and whether commitments will remain in place if the property is sold.

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