The devil is in the data center details
This article analyzes how communities can successfully integrate data centers by asking critical questions upfront, using examples from Quincy, WA, and North Dakota. It emphasizes considering electricity usage, noise impact, water consumption, and the importance of community engagement. The piece highlights that proactive planning can lead to positive outcomes like lowered taxes, while a lack of foresight can result in issues such as strained power grids, noise complaints, and legal disputes.
Robert Mayo, a research specialist at the Challey Institute at North Dakota State University, penned an analysis published by The River Reporter, exploring why some communities thrive with data center developments while others face significant challenges. The article uses Quincy, Washington, where data centers contribute three-fourths of the city's property tax revenue and have led to lower resident tax rates, as a prime example of successful integration. This contrasts with a nationwide trend where over 300 data center-related bills have been filed in 30 states by 2026, some communities are revoking incentives, and New York has imposed a one-year moratorium on large new data centers. Texas Governor Greg Abbott also halted approvals for new data center connections to the state's power grid pending a regulatory audit.
Mayo argues that the divergence in outcomes is not due to the data center technology itself, but rather whether local and state officials ask the right questions during the planning stages. He identifies four critical areas: electricity, noise, water, and community engagement. Regarding electricity, he notes that while large hyperscale centers often generate their own power, those connecting to the local grid can either stabilize rates by spreading fixed costs (as seen nationally from 2015-2024 according to an Electric Power Research Institute study) or strain capacity and raise costs, as happened in Williston, North Dakota. Conversely, a data center in Ellendale, North Dakota, bought "stranded" wind power, cutting local electricity costs.
Noise from cooling equipment is cited as a significant concern, which can be mitigated through appropriate siting and distance from residential areas; a nuisance lawsuit was filed in Williston due to a facility being too close. Water consumption, particularly with older evaporative cooling systems, is another common worry. However, newer air-cooling or closed-loop systems, like the one Meta committed to for its El Paso, Texas facility, use significantly less water and can be stipulated in permits to avoid controversy.
Finally, Mayo emphasizes proactive community engagement, stating that developers who explain projects and listen to residents early on earn trust, preventing opposition even if technical issues arise. He contrasts the negative experience in Williston, where residents felt the project was imposed, with Ellendale's positive outcome, attributed to the developer's open town halls and direct communication. The article concludes that communities that "ask the right questions first" are the ones that ultimately benefit from data center development.