When a data center is proposed, the public conversation can quickly become divided between people who see economic opportunity and people who worry about local impacts.

A better starting point is a set of clear, project-specific questions.

Not every data center has the same design or effect. A community should therefore avoid relying solely on national averages, promotional estimates or examples from other locations.

Residents and local officials need information about the facility actually being proposed.

1. How much electricity will the project require?

Ask for the expected electricity demand when the facility opens and when it is fully built.

A project may be developed in several phases, so its initial power use may be much lower than its eventual demand.

Useful follow-up questions include:

• Has the utility completed a formal service study?
• What new substations, transmission lines or generation will be needed?
• Who will pay for those upgrades?
• Could costs be passed to other customers?
• How will the utility protect reliability during periods of high demand?
• Will the company pay for capacity it reserves but does not ultimately use?
• What assumptions were used to forecast future demand?

The Department of Energy estimates that data centers accounted for approximately 4.4% of U.S. electricity consumption in 2023 and could account for between 6.7% and 12% by 2028.

Those national figures do not determine the effect of an individual project, but they demonstrate why local energy planning matters.

2. What type of backup power will be installed?

Data centers commonly use backup systems to continue operating during power interruptions.

Ask:

• How many backup generators are proposed?
• What fuel will they use?
• How often will they be tested?
• What air permits will be required?
• How will emissions be measured and reported?
• Are batteries or lower-emission alternatives part of the design?
• How close will generators be to homes, schools or other sensitive locations?

The U.S. Environmental Protection Agency maintains Clean Air Act resources specifically addressing data center backup generation and associated permitting requirements.

3. How much water will the facility use?

A request for one annual number may not be enough.

Communities should ask:

• What cooling technology will be used?
• How much water will be consumed on an average day?
• What is the expected demand on the hottest days?
• Will potable water, groundwater, reclaimed water or another source be used?
• How will water use change as the campus expands?
• Could drought restrictions affect operations?
• Will water-use information be reported publicly?
• What conservation or reuse systems are planned?

Water demand depends heavily on facility design and climate. Site-specific estimates are more useful than generalized claims that data centers either “use enormous amounts of water” or “use almost none.”

The EPA’s Quincy, Washington, case study shows one possible approach: a municipal reuse system that treats and recirculates data center cooling water, reducing the use of potable groundwater.

4. What noise will nearby properties experience?

Cooling equipment, electrical infrastructure, generators and construction activity can produce noise.

Ask the developer to provide an independent acoustical study that considers:

• Normal operations
• Generator testing
• Emergency generator operation
• Seasonal conditions
• Construction activity
• Existing background noise
• The cumulative effect of multiple buildings
• Low-frequency sound
• Nearby homes, schools, parks and businesses

Noise projections should identify where measurements were taken and what assumptions were used.

Communities may also establish enforceable limits, monitoring requirements and procedures for investigating complaints.

5. What will happen during construction?

A large project may involve years of phased construction.

Questions should address:

• Construction hours
• Truck routes
• Road wear
• Dust and debris
• Blasting or grading
• Stormwater management
• Temporary lighting
• Worker parking
• School and emergency routes
• Communication with nearby residents
• How complaints will be received and resolved

Communities should distinguish temporary construction impacts from long-term operating impacts, while still planning seriously for both.

6. How many jobs will the project create?

Job figures should be separated into categories.

Ask for:

• Temporary construction jobs
• Permanent full-time positions
• Contracted or outsourced positions
• Typical wages and benefits
• Required education and certifications
• Expected local hiring
• Workforce-development partnerships
• Whether employment estimates cover one building or the entire campus

A data center can involve substantial construction employment while supporting a smaller permanent operating workforce. Communities should not treat the two numbers as interchangeable.

Virginia legislative analysis has specifically identified the need to better quantify job growth associated with data centers.

7. What tax revenue will the community actually receive?

A large capital investment does not automatically translate into an equally large public benefit.

Ask:

• Which assets will be taxable?
• What exemptions or reduced rates apply?
• How quickly will equipment depreciate?
• What revenue is expected each year?
• How sensitive are projections to tax-rate changes?
• What incentives is the company receiving?
• What public infrastructure costs will accompany the project?
• Has an independent financial analysis been completed?

Virginia’s JLARC found that data center tax revenue varies based on market size, local rates and the tax treatment of equipment and real estate.

Public officials should present projected revenue alongside incentives, infrastructure obligations and financial risks.

8. How will the project affect land and the environment?

Questions may include:

• How many acres will be cleared?
• Are wetlands, streams or wildlife habitats present?
• What stormwater controls are proposed?
• How will erosion be prevented?
• Will mature trees or natural buffers be preserved?
• What will the buildings and utility infrastructure look like?
• How will lighting affect neighboring properties?
• Are heat, air emissions or hazardous materials relevant?
• What happens to equipment at the end of its useful life?

The appropriate environmental review will depend on the site, project and applicable laws.

9. What community benefits are being promised?

A company may discuss schools, parks, workforce programs, road improvements or nonprofit support.

Ask whether those commitments are:

• Specific
• Written
• Funded
• Measurable
• Enforceable
• Connected to documented community priorities
• Designed to continue after construction

A one-time donation is different from a long-term partnership. Both may be valuable, but they should not be described as though they are the same.

10. How will the company remain accountable?

Communities should understand what happens after permits are approved.

Ask:

• Who will serve as the local point of contact?
• How can residents submit concerns?
• How quickly must the company respond?
• Will electricity, water, noise or environmental information be reported?
• Will there be regular public meetings?
• How will commitments be tracked?
• What enforcement mechanisms apply?
• What happens if the property is sold to another operator?

DOE guidance for community benefits planning emphasizes identifying stakeholders, creating ongoing engagement mechanisms, providing access to project-impact information and explaining how community feedback will influence decisions.

The most important question: What does this community need?

A technically sound project may still be a poor local fit if it does not reflect the community’s land-use plans, infrastructure capacity or long-term goals.

Residents should not be expected to become data center engineers. Companies and public agencies should provide information in language that people can understand, with enough time for meaningful review.

Good decision-making does not begin with a predetermined “yes” or “no.”

It begins with complete information, independent analysis and a clear understanding of who receives the benefits, who carries the risks and how promises will be upheld over time.