{"id":25053,"date":"2026-07-14T12:19:21","date_gmt":"2026-07-14T16:19:21","guid":{"rendered":"https:\/\/blogs.edf.org\/energyexchange\/?p=25053"},"modified":"2026-07-14T13:45:51","modified_gmt":"2026-07-14T17:45:51","slug":"laying-the-foundation-communities-deserve-a-voice-in-the-data-center-boom","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2026\/07\/14\/laying-the-foundation-communities-deserve-a-voice-in-the-data-center-boom\/","title":{"rendered":"Laying the foundation: Communities deserve a voice in the data center boom"},"content":{"rendered":"\n<p><em>By <a href=\"https:\/\/www.linkedin.com\/in\/dynisha-benson-6a0549224\/\">Dynisha Benson<\/a>, Legal Intern, and <\/em><a href=\"https:\/\/www.edf.org\/people\/tonya-howard-calhoun\"><em>Tonya Calhoun<\/em><\/a><em>, Senior Director, Community Engagement<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transparent communication between data center developers, local decision-makers, and residents can address communities\u2019 concerns about these projects and enable communities to better advocate for their priorities.<\/li>\n\n\n\n<li>Local leaders should work with community residents to identify the impacts of data centers on water use, land use, electricity, pollution, and ratepayer costs. By asking the right questions, communities can secure meaningful protections and benefits before construction begins.<\/li>\n\n\n\n<li>For processes outside of local control, such as how data centers pay for their electric grid costs, local leaders and communities can advocate for rules and policies at the state level.<\/li>\n<\/ul>\n\n\n\n<p>The United States already hosts more than <a href=\"https:\/\/www.pewresearch.org\/short-reads\/2026\/04\/13\/most-new-data-centers-in-the-us-are-coming-to-rural-areas\/\">3,000 operational data centers<\/a>, and the AI boom is fueling one of the largest waves of industrial development in decades. As demand for computing power surges, data center construction is accelerating across the country. That rapid growth is putting increasing pressure on electricity grids and water supplies, especially in drought-prone regions.<\/p>\n\n\n\n<p>Addressing these challenges will require large-scale investments and reforms to make our energy and water systems more efficient and resilient. But communities are already feeling the impacts today and are looking for solutions.<\/p>\n\n\n\n<p>For too many communities, the first time they\u2019re brought into the development process is when a data center breaks ground. Sites have been selected, permits approved, contractors hired and construction plans finalized, all without appropriate opportunity for community input. With many local governments feeling the pressure to accept developer conditions or risk losing out on the potential economic value of a new data center, residents often feel like they\u2019re reacting instead of leading.<\/p>\n\n\n\n<p>While many of the rules shaping the costs, energy, pollution and water impacts from data centers are made at the state level, residents and local leaders deserve a seat at the table and input on infrastructure that will affect them. Responsible data center development centers community priorities and emphasizes transparency, long-term planning and agreements that secure tangible benefits for families and businesses in areas that host these projects.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Greater transparency in local development decisions<\/strong><\/h2>\n\n\n\n<p>Developers are moving quickly to take advantage of the massive amounts of capital being invested into data centers, and that means state and local governments seeking tax revenue are increasingly fast-tracking development by shortening or bypassing traditional public participation requirements or granting these projects <a href=\"https:\/\/www.congress.gov\/crs-product\/R48762\">critical infrastructure<\/a> status. Some developers rely on non-disclosure agreements with landowners, utilities and local governments during early-stage site selection. These agreements can shield <a href=\"https:\/\/www.nbcnews.com\/tech\/tech-news\/data-center-ai-google-amazon-nda-non-disclosure-agreement-colossus-rcna236423\">critical details<\/a> from public view, including project timelines, infrastructure demands, environmental impacts and even the identity of the company behind the project.<\/p>\n\n\n\n<p>When approached by developers, local leaders have an obligation to keep their constituents informed about these projects. That can include hosting town halls and listening sessions to hear community concerns, collect questions, and offer clarity on development proposals. Local leaders can even invite developers themselves to participate in these meetings and directly respond to residents\u2019 perspectives. Spaces like these not only build trust but also equip decision makers with information that can regulate further development.<\/p>\n\n\n\n<p>Some states and communities are <a href=\"https:\/\/news.gallup.com\/poll\/709772\/americans-oppose-data-centers-area.aspx\">beginning to push back<\/a> as concerns grow over the pace and transparency of data center development. Public opinion is <a href=\"https:\/\/news.gallup.com\/poll\/709772\/americans-oppose-data-centers-area.aspx\">increasingly skeptical<\/a> of large data center projects, particularly when residents believe decisions are being made without meaningful local input or clear information about potential impacts on electricity costs, water resources, land use and quality of life.<\/p>\n\n\n\n<p>In New Jersey, lawmakers are considering multiple proposals aimed at increasing transparency, limiting secret development agreements, strengthening public oversight and ensuring utility customers are not left paying for infrastructure upgrades tied data center growth. Under New Jersey\u2019s <a href=\"https:\/\/www.nj.gov\/state\/bac\/planning\/documents\/mlul022017.pdf\">Municipal Land Use Law<\/a>, communities have the right to review information such as site plans, intended land use, traffic impacts, noise, environmental effects and infrastructure demands before decisions move forward.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Technical expertise and local insight are powerful together<\/strong><\/h2>\n\n\n\n<p>Data center developments <a href=\"https:\/\/www.congress.gov\/crs-product\/R48762#_Toc216710693\">typically require<\/a> multiple approvals, including zoning decisions, utility interconnection agreements, and air and water permits. Local leaders should determine what authority they have over zoning and permitting and which decisions are made at the state and federal level.<\/p>\n\n\n\n<p>Communities can partner with land use, energy or environmental experts early in these approval processes to shape their outcomes. Strong technical comments focused on water use, grid impacts, emissions, cumulative regional impacts and ratepayer costs can carry particular weight with regulators. Environmental attorneys, legal clinics, and technical assistance organizations can help residents navigate the process and advocate for greater transparency.<\/p>\n\n\n\n<p>For processes outside of local control, there are typically public comment periods or advocacy opportunities where local leaders and communities can make their voices heard.<\/p>\n\n\n\n<p>In Pennsylvania, cities, towns and municipal associations, along with environmental groups like EDF, ratepayer advocates and others, all actively weighed in on <a href=\"https:\/\/www.edf.org\/media\/pennsylvania-regulators-move-protect-customers-data-center-driven-grid-costs\">Public Utility Commission rules<\/a> regarding how data centers should cover their grid costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Creating agreements that benefit communities<\/strong><\/h2>\n\n\n\n<p>Early engagement in data center development can <a href=\"https:\/\/www.brookings.edu\/articles\/why-community-benefit-agreements-are-necessary-for-data-centers\/\">secure meaningful concessions<\/a> in the form of community benefit agreements, including enforceable water-use limits, renewable energy commitments, commitments to hire locally and stronger noise protections. In cases where communities aren\u2019t brought into the process until later, local leaders can still create avenues for input and oversight.<\/p>\n\n\n\n<p>Memphis, Tennessee has seen a rapid expansion of xAI data centers, leading many residents to express concerns about accountability, rising energy prices and impacts on air and water quality. In response, the mayor and city council established an AI Advisory Board on Community Benefits to inform how tax revenue from the data centers should be allocated. At a <a href=\"https:\/\/www.actionnews5.com\/2026\/06\/05\/advisory-board-finalizes-recommendations-how-spend-33m-xai-tax-revenue\/\">recent convening<\/a>, residents were given the opportunity to advocate for the projects most critical to their neighborhoods. These perspectives should guide how the city spends millions of dollars in revenue from xAI facilities.<\/p>\n\n\n\n<p>Memphis\u2019 approach offers an example for communities that already have data centers and want more accountability from existing projects. It also shows some of the limitations of securing benefits from developers after projects are already up and running.<\/p>\n\n\n\n<p>The path toward a mutually beneficial outcome starts long before construction begins. Communities deserve transparency before deals are signed, opportunities to organize before hearings are scheduled and meaningful input before permits are approved. As debates over data centers intensify in statehouses and communities across the country, early and earnest public engagement will play an increasingly important role in determining how and where these facilities are built.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Dynisha Benson, Legal Intern, and Tonya Calhoun, Senior Director, Community Engagement The United States already hosts more than 3,000 operational data centers, and the AI boom is fueling one of the largest waves of industrial development in decades. As demand for computing power surges, data center construction is accelerating across the country. That rapid &#8230;<\/p>\n","protected":false},"author":153250,"featured_media":25054,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[114057],"class_list":["post-25053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Laying the foundation: Communities deserve a voice in the data center boom - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2026\/07\/14\/laying-the-foundation-communities-deserve-a-voice-in-the-data-center-boom\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Laying the foundation: Communities deserve a voice in the data center boom - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"By Dynisha Benson, Legal Intern, and Tonya Calhoun, Senior Director, Community Engagement The United States already hosts more than 3,000 operational data centers, and the AI boom is fueling one of the largest waves of industrial development in decades. 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