
The tech giant said Tuesday it was making five policy pledges to ensure that its data centers are not a burden on people living nearby. The measures include replenishing water supplies, not asking for property tax breaks and making sure that Microsoft’s data centers don’t drive up electricity rates.
The plan “reflects our sense of civic responsibility as well as a broad and long-term view of what it will take to run a successful AI infrastructure business,” Microsoft President Brad Smith said in a company blog post…
The community anger crosses the partisan divide. Conservative activists in ruby-red towns in Oklahoma have been circulating petitions demanding the firing of officials who sign nondisclosure agreements to negotiate terms with tech companies. And progressive groups such as the Democratic Socialists of America and the NAACP have rallied around data center opposition…
Between April and June of last year, 20 projects valued at some $98 billion of planned data center projects were derailed in communities across the country, according to a report by Data Center Watch, a tracking project by the nonpartisan research firm 10a Labs. More projects were derailed in those three months than in the past two years.
Are these the primary or only concerns residents have? Imagine that Microsoft or other tech companies could make good on these pledges: no higher electricity rates, reasonable water usage, and so on. Would the concerns of residents fade away?
Maybe. I wonder if several other concerns might then pop up. Do residents trust tech companies? They might not like tech companies building much of anything. Or they might argue the land could be put to better uses. From what I can gather, data centers provide some longer-term but not many longer-term jobs. Perhaps a different kind land use could provide bigger economic opportunities for people living nearby?
Or is the primary issue in many of these cases that they are located close to residences? Homeowners, in particular, often react negatively to any nearby land use that could threaten their day-to-day life and/or housing values. Zoning is meant to help keep homeowners away from undesirable land uses. And undesirable can be interpreted very broadly.
Perhaps all of this will fade away with time. Data centers are popping up all over the place and many communities are facing this issue. Will this building pace continue or will it slow soon?
I also suspect there will be some communities that approve and/or welcome data centers even as others turn them away. A single metropolitan area can have dozens or hundreds of communities that companies can try to work with. Whether the communities that do approve data centers see long-term benefits remains to be seen.