Big Data Centers Are Booming, but Secret Deals Draw Local Opposition

With hundreds of projects before local planners, nondisclosure pacts and tax incentives are spurring suspicion among local residents.

From Georgia to Oregon, New England to New Mexico, data center projects are drawing opposition in local government hearings by residents concerned about the voracious demand for electricity, water consumption, and noise. Critics also argue that data centers donโ€™t produce the jobs other land uses generate.

In Texas, people in small towns question data center development in the broader context of rapid rural industrialization.

In Pennsylvania, ad hoc groups say data centers are tapping into nearby natural gas fields, increasing the frequency of fracking, and straining water supplies.

In Indiana, Minnesota, Kansas, Nebraska, and across the country, residents say the scale and proximity of these high-tech campuses degrade their neighborhoods and devalue properties.

Objections vary, depending on proposal and site, but a common complaint is state and local governments offering data center projects tax incentives that are often shielded from public scrutiny through nondisclosure agreements.

Companies say these pacts shield proprietary corporate intelligence, but the perceived lack of transparency fosters suspicion and anger when residents realize local planners are set to approve a proposal they knew little to nothing about until it appeared to be a done deal.

โ€œJust from our experience, it seems like one of the big concerns is that, yeah, there is no community outreach,โ€ Kamil Cook, Public Citizenโ€™s Texas climate and clean energy associate, told the Epoch Times. โ€œThereโ€™s no method by which the community can be informed in a way that actually makes it seem like their voice is valued and that they have a choice in these matters.โ€

Much of this local opposition appears rooted in the complaint that people โ€œwerenโ€™t informed to begin with, were ignored at some point,โ€ said Joe Warnimont, who co-authored a February HostingAdvice.com survey. The survey of 800 people in 16 states found that 93 percent agreed that โ€œcutting-edge AI data centers are vital to the United States,โ€ but only 35 percent want one in their town.

โ€œThe main insights are there is clearly a disconnect between what the local residents experience and what is being sold to these communities from developers,โ€ Warnimont told The Epoch Times.

Byย John Haughey

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