How much power do cities have over data centers?

A recent two-to-one vote in Port Washington, Wisconsin, saw residents approve a referendum mandating voter approval for tax incentives exceeding $10 million, a measure directly impacting data center developments. This move, highlighted by experts as a template for other communities, reflects increasing public opposition and a struggle among local leaders to assert authority over data center construction across the U.S. The shifting political landscape is further underscored by several recent actions. Maine's state legislature enacted the nation's first statewide moratorium on data center construction. Concurrently, a bipartisan coalition of governors urged grid operator PJM Interconnection to require data centers to bear the full costs they impose on the electricity grid. In Prince William County, Virginia, the Board of Supervisors voted to conclude a legal dispute with a residents' group concerning a proposed data center hub. Great Lakes Neighbors United, a local advocacy group, spearheaded the Port Washington referendum, citing concerns about an $8 billion data center complex approved by the city's common council. The group's website, saveportwashington.com, detailed worries about the project's immense electricity and water consumption, drawn from Lake Michigan, and alleged insufficient public notice and impact studies. However, the Data Center Coalition's Brad Tietz warned that such moratoriums could deter further investment from data center and other advanced industries. Ishyan Veluppillai of Capstone, an investment advisory group, noted that anti-data center sentiment is particularly potent in oversaturated markets like Northern Virginia and Ohio. He observed that voters are largely concerned with issues like road infrastructure, noise, and air pollution. Experts, including Sheila Foster from Columbia Climate School, suggest that blunt tools like moratoriums might create more problems than they solve, advocating instead for strategic negotiations and transparent community benefit agreements to ensure local communities gain from developments rather than absorb excessive costs or risks.