Data Center Development Outcomes Depend on Planning and Engagement, Expert Argues
This commentary discusses the varying impacts of data center development on local communities, emphasizing that careful planning and engagement are crucial. It highlights key considerations such as electricity grid capacity, noise mitigation through proper siting, and water usage, citing examples from Quincy, Washington, and North Dakota. The author stresses the importance of asking the right questions before development to maximize benefits and minimize costs.
The article, a commentary by Robert Mayo of the Challey Institute at North Dakota State University, emphasizes that successful data center development hinges on meticulous planning and community engagement. Mayo illustrates this point using contrasting examples: Quincy, Washington, where data centers significantly boost property tax revenue, versus communities nationwide revoking incentives and states like New York imposing moratoriums.
The commentary delves into four critical areas requiring careful consideration: electricity rates, noise, water usage, and community engagement. Mayo explains that while data centers can stabilize electricity grids by providing steady demand, as seen in an Electric Power Research Institute study, specific cases like Williston, North Dakota, demonstrate how inadequate grid capacity can burden local ratepayers. Conversely, an Ellendale, North Dakota, facility utilized "stranded" wind power, cutting local costs.
Regarding noise, Mayo notes that cooling equipment operates continuously, making proper siting crucial. The Williston facility, located too close to residences, resulted in a nuisance lawsuit, whereas adequate distance can mitigate noise complaints. For water, the author differentiates between older evaporative systems and newer, water-efficient closed-loop systems, citing Meta's El Paso facility and Ellendale's facility as examples where specific water-use limits or low-consumption designs were permitted.
Finally, Mayo underscores the importance of developers engaging early and transparently with communities. He contrasts the negative public sentiment surrounding the Williston project, where residents felt bypassed, with the positive reception of the Ellendale project, which fostered goodwill through open town halls. The author concludes that communities that proactively ask the right questions are most likely to benefit from data center development.