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As Trump promotes data centers, communities push back

Trump outlines government role in data centers

The community has become more organized and responsive.

Learn from other localities by forming a network.

By Carey L. Biron

Trump announced an AI strategy in the last month, aimed at achieving U.S. leadership by cutting regulations, accelerating permits and making land and infrastructure available for data centers.

The strategy was announced after his executive order that named AI as a key component of national security, and an announcement by the private sector to invest $500 billion in a plan called "Project Stargate", which would boost AI development throughout the country.

Data centers are the brain, engine and memory of AI and cloud computing, which is used to power everything from toys for children to office efficiency and military analysis.

Local communities have expressed concern over the development of data centers that clog up already populated areas and contribute to congestion, traffic, light and noise pollution, as well as a lack of water and increased energy costs.

As they become more organized, they are building a national network that links areas with similar development challenges.

Data Center Watch reports that 140 activist groups are fighting to stop the development of data centers in 24 states. Local opposition has slowed or stopped projects worth $64 Billion in the last two years.

Morgan Butler, senior attorney at the Southern Environmental Law Center, says that under the government's latest strategy, data centers are treated in a similar way to military installations when it comes to preferential regulatory treatment.

He said that local governments could use their zoning and land-use authorities to approve or deny data center development. However, the new government strategy would rob them of all information they need to make decisions.

He said that the strategy "threatens" to discourage localities and states from adopting ordinances which limit data center development.

He said that residents are deprived of the information needed to take action.

It is harder to convince the local government of the correct decision if the information you have on hand is not accurate.

The White House has not responded to a comment request.

'HYPER-LOCAL FOCUS'

A massive increase in data centers over the past few years has led to nearly half of all data centers around the world being located in America.

Amazon, Google, Meta, as well as less-known developers like QTS are building data centers. The U.S. Department of the Interior Department is also looking for public lands that could be developed.

Many localities are eager to host this type of development in order to create jobs and boost economic growth.

According to a report released in February by the Data Center Coalition (an industry group), the data-center sector contributed $727 billion and 4.7 million jobs to the Gross Domestic Product (GDP) of the United States in 2023.

Some communities are not as enthusiastic.

Ben Inskeep is the program director of Citizens Action Coalition in Indiana, a utility watchdog group.

He said that locals find it frustrating how they operate in secrecy and wait until the very last moment to announce the construction of a new data center.

He said that communities have sought out other groups who have had similar experiences.

Inskeep stated that his coalition tracks 40 data center proposals across Indiana. Six of these have been withdrawn due to local objections.

Wendy Reigel of Chesterton, in northern Indiana led an effort last year to stop the development of a huge data center on an old golf course in a 500-home neighbourhood.

She said, "You would never have thought that a golf course for commercial purposes could become a heavy industry."

She said that the developer retracted its application, but then moved on to other nearby communities. Each of them also fought against it.

She said that the key to success is to have a "hyperlocal" focus.

The main goal is to attend the meetings. Send your viewpoint, put up yard signs and speak to people who will make the decision.

NEW TOOLS

New tools are being developed to address local concerns through legal and legislative reforms.

The state of Oregon created a new category of power users for data centers in June. This was done because of concerns about the costs of massively increased electricity usage by these operations.

Bob Jenks said that previously, costs were "spread out like peanut butter" to all users. This strategy made sense because power demands rose at a similar rate, according to Jenks.

In the last five years, industrial customers including data centers have increased their demand by 95%.

Jenks stated that electricity rates have increased by 50% over the last five years. Last year, a record number residential customers were disconnected due to non-payment.

Similar bills have been introduced in Pennsylvania and other States.

Vida Carroll lives in rural Prince William County and is concerned about the future development of Virginia's data centers, the most concentrated in the world.

She said that communities across the country are experiencing similar problems to those Virginians are facing.

She said that the actions of residents in Northern Virginia influenced elections and led to some data center proposals being scaled back.

She said that in August, they won a court case against a 2,100-acre proposed data center complex. The construction of the transmission line, and the prospect of increased electricity rates, had been a concern for residents of the area for many years.

(source: Reuters)