By Thomson Reuters Foundation
Copyright eco-business
‘Hyper-local focus’
The United States already hosts nearly half of the world’s data centres – about 5,400 – due to a massive build-up in recent years.
Data centres are being built by big consumer brands including Amazon, Google and Meta as well as lesser-known developers such as QTS, and the US Department of the Interior Department has been seeking public lands for potential development.
Many localities have jumped at the chance to host such development, eyeing job creation and economic growth.
The data-centre industry contributed 4.7 million jobs and US$727 billion to the gross domestic product in 2023, according to a February report from the Data Center Coalition, an industry group.
Other communities have not been so enthusiastic.
Their concerns range from traffic and pollution to water usage and rising energy rates, said Ben Inskeep, program director with Citizens Action Coalition, an Indiana utility watchdog group.
“One of the things locals are finding frustrating is how [developers] operate through secrecy, waiting until the last second to notify that construction of a data centre is under development,” he said.
That has led communities to search out others that have gone through similar experiences, he said.
His coalition is tracking 40 data centre proposals in the state of Indiana, where six have been withdrawn based on local objections, Inskeep said.
Wendy Reigel, who lives in Chesterton in northern Indiana, last year led an effort to halt development of a large data centre on a former golf course in her 500-home neighbourhood.
“You never think a commercial golf course would become heavy industry,” she said.
The developer withdrew its application but moved on to try other nearby communities, each of which also fought back, she said.
The key is having a “hyper-local” focus, she said.
“The big goal is to come to the meetings. Email your perspective, get out and put out yard signs, and talk to neighbours and the people that will be making this decision.”
Legal and legislative changes are also underway to provide new tools to address local concerns.
In June, the state of Oregon made data centres a separate power user category, based on concerns that the cost of the massive new electricity demands by such operations would be borne by residents.
Previously, such costs were “spread like peanut butter” among all users, a strategy that made sense when power needs rose roughly at pace with one another, said Bob Jenks, executive director of the Oregon Citizens’ Utility Board.
While demand from residential customers in Oregon has risen by 3.5 per cent since 2016, demand from industrial customers, including data centres, rose by 95 per cent in just the past five years.
Electricity rates in the state have risen by about 50 per cent in the past five years, and last year a record number of residential customers were disconnected for nonpayment, Jenks said.
The Oregon law is sparking similar bills in Pennsylvania and other states.
In Virginia, home to the largest concentration of data centres in the world, residents are keeping an eye on further development, said Vida Carroll, who lives in rural Prince William County.
“There are communities all over the country going through similar case studies of what Virginia is going through,” she said.
Actions by residents in northern Virginia have swayed elections, prompting some proposed data centre operations to shrink in scale, she said.
In August, they scored a legal victory over a proposed 2,100-acre data centre complex, where construction of its transmission line and the prospect of higher electricity rates have concerned residents for years, she said.
“Have we been able to solve this problem? No,” Carroll said. “But I’m optimistic about the change citizens have been able to have.”
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