The data center industry’s PR blitz Is backfiring
The data center industry's PR campaign, fronted by groups like North Carolina Connects and backed by the Data Center Coalition (including Amazon, Microsoft, and Google), is failing to sway public opinion. Despite these efforts, opposition to data center development is increasing nationwide, leading to numerous local moratoriums and project withdrawals. State-level regulatory changes, such as the repeal of electricity sales tax exemptions for data centers in North Carolina, are also occurring.
A public relations campaign by the data center industry, spearheaded by groups like North Carolina Connects, is struggling to counter growing public opposition to new data center developments. The ads, which laud economic benefits, are backed by the Data Center Coalition, a powerful trade group whose members include tech giants like Amazon, Microsoft, and Google. Despite the industry's assertions that data centers pay their own energy costs, a recent legislative change in North Carolina repealed an electricity sales tax exemption for data centers, which had effectively subsidized their energy consumption.
Residents, particularly in Vance County, North Carolina, where a proposed data center could impact local land, express concern over the lack of transparency from developers, including non-disclosure agreements with local governments. While Amazon previously sought to keep air permit details confidential, Microsoft recently announced it would no longer require NDAs and terminated existing ones, such as with Person County officials. A national survey by the Annenberg Public Policy Center indicates that 61% of U.S. adults oppose new data centers in their area, a 12-point increase since February.
This widespread opposition has led to concrete actions at the local level. Ten counties, 17 cities, and the Eastern Band of Cherokee Indians in North Carolina have enacted temporary moratoriums on data center construction. Additionally, Learnewable, a company analyzing government data, reports that approximately one in seven U.S. counties now has some form of restriction on data centers. The situation in Vance County exemplifies this, as commissioners rezoned land for Natelli, a real estate company, despite public opposition, for a potential data center near residential areas. Natelli had previously withdrawn a proposal near Apex in Wake County due to local opposition.
Industry representatives like Dan Diorio of the Data Center Coalition acknowledge the need for better transparency. However, the article suggests that public trust is not being won by PR efforts alone, with critics advocating for full disclosure of energy and water usage, and the actual value of tax breaks. The industry's promises of job creation, while touted by a PWC report commissioned by the DCC, lack detailed breakdowns of pay scales and include various types of workers.