‘Community Benefits’ from a Hyperscale Data Center are a Mighty Tall Order
News ClipTech Policy Press·Saline, Washtenaw County, MI·2/26/2026
Residents in Saline, Michigan are rallying against a $7 billion Stargate data center planned in the area, citing concerns over increased electricity rates and potential impacts on the water supply. The data center is being fast-tracked by the local utility DTE Energy. This issue has become bipartisan, with the President and a Senator calling for moratoriums on new AI data center construction across the country as grassroots resistance grows over the impacts of the data center boom.
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Data centers in the U.S. are facing growing community resistance over issues like electricity rates, water supply, air pollution, and land use. Some have suggested Community Benefits Agreements (CBAs) as a solution, but experts warn they could be used to "whitewash bad deals." States need to reform data center policies by repealing tax exemptions, requiring full property taxes, and segregating data centers into their own electricity rate class. Developers must locate centers away from residential areas, install pollution controls, and reduce water usage. Process safeguards like banning non-disclosure agreements are also needed. If these reforms are implemented, CBAs could then focus on local benefits like project labor agreements, local hiring, and mitigation of community impacts.