Compass Datacenters CEO on data center moratoria: Don't ban them, raise the bar for developers
Compass Datacenters CEO Chris Crosby discusses the increasing scrutiny and moratoria on data centers by state and local governments in the US. He addresses specific actions taken in New York and Texas related to data center development and power grid approvals. Crosby advocates for raising developer standards rather than imposing outright bans, emphasizing community partnership and infrastructure investment.
Chris Crosby, CEO of Compass Datacenters, appeared on CNBC's 'Power Lunch' to discuss the growing pushback against data center development across the United States. Crosby highlighted recent actions by state governments, including New York becoming the first state to impose a moratorium on new large-scale data centers.
He also noted that Texas, where Compass Datacenters is headquartered, has implemented a pause on new data center grid approvals, with Governor Greg Abbott ordering an audit of all projects seeking to connect to the state's main power grid. Crosby clarified that this Texas initiative was largely aimed at speculative developers who intended to sell power access rather than build, preventing a 'windfall' akin to spectrum auctions.
Addressing concerns about resource drain, Crosby stated that Compass Datacenters has not used water since 2011 and believes developers should pay their own way for electricity, avoiding noise and light pollution. He urged other states considering moratoria to 'raise the bar' for developers instead of imposing bans, suggesting that the industry can contribute to workforce development and help rebuild the power grid through significant infrastructure investment. Crosby emphasized that data center companies are willing to invest billions into communities, supporting local needs like water infrastructure, schools, and emergency services, while also providing property tax revenue.