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From Opposition to Buy-In: Tactics for Data Center Developers Data center developers are responding to growing community opposition by embracing transparency, funding power infrastructure, and prioritizing locations with supportive residents. Two years ago, a new wave of massive AI data centers dominated the headlines. A year ago, murmurings of discontent began to be heard. As 2026 heads into its final quarter, those murmurings have become a cacophony of opposition. Whether it is local communities complaining about water, power, or noise, or government bodies imposing bans or moratoria on data centers, pushback has caught the public eye. It is no surprise, therefore, that several sessions at the recent Data Center World Power event in Dallas, which ran Sept. 21-23, addressed this issue. Concerns about power availability and potential electricity rate hikes in the local area are among the biggest worries voiced by data center opponents. In some regions, data centers are being blamed for increases in electricity rates. In response, many data center developers are expressing a willingness to fund upgrades needed to support their projects. Some have paid for entire battery energy storage systems (BESS) that benefit both the grid and their data centers. Others are contributing to transmission upgrades or purchasing transformers, substations, and other power electronics infrastructure to avoid passing extra costs on to ratepayers. Some grid planners and utilities are formalizing such arrangements to make them standard practice for new projects. Here are some top tips from Data Center World Power for interacting with community groups. Be Transparent Early: Retire the NDA Playbook Diane Sullivan, chief development officer of Hecate Energy, a Chicago‑based US developer of utility‑scale energy parks, believes that the current backlash against data centers is partly due to past practices. She cited non-disclosure agreements with city officials and developing projects under the radar, getting them largely set up before announcing them. That approach may have worked for smaller projects that exerted relatively little impact on the local grid. However, AI data centers are becoming so large that transparency has become essential. It is in the developer’s long-term interest to engage with the community upfront. “In the past, developers would sometimes obtain permits before informing the public about a data center project, which is a terrible idea,” Sullivan said. “We must become open and be fully transparent about our plans.” Bring Power with You: Co-Develop Power with Utilities and EPCs A data center development of any size requires a plan for both the facility and its power. That might include wind, solar, batteries, geothermal, natural gas, or nuclear. But permitting and system operator approval are unlikely without a clear plan for adding new power resources, typically funded by the developer. Data center developers are urged to partner with power plant developers, EPC (engineering, procurement, and construction) contractors, and utilities to line up a portfolio of options. In many cases, that will entail multiple resources – perhaps solar, gas-fired generation, backup generators, and batteries. “Any project proposal should also include a power generation solution, or you are probably wasting your time,” Sullivan said. Community Support Now Trumps Power Availability Once upon a time, the primary criteria for a good data center site were proximity to a major metro area and fiber availability. Over the past couple of years, power has become the key factor. Now there is another essential element: community support. The project must benefit the local area, and there should be a largely positive attitude towards it. “You could have a perfectly executable project that’s real, it’s commercial, and has well-allocated risk, but the community shows up and doesn’t want you there,” said Dado Slezak, executive vice president of energy capital and strategy at QTS Data Centers. “You could have a perfectly executable project that’s real, it’s commercial, and has well-allocated risk, but the community shows up and doesn’t want you there.” – Dado Slezak, EVP of energy capital and strategy, QTS Data Centers To avoid that outcome, economic benefits should be made tangible to residents. Beyond tax payments, developers can support local schools or help stabilize electricity rates. Slezak cited a QTS project in Iowa where the company reached an agreement with the utility to fix and subsidize community electricity rates for five years. Benefits can also extend beyond economics; some developers invest in water restoration. “There are also different types of jobs that the data center brings,” added Alise Porto, vice president of sustainability and strategic initiatives at Switch. In addition to direct data center roles, construction generates significant employment during development. Some developers are working to translate those jobs into permanent positions via on-site retraining programs. Tour Working Facilities to Debunk Water and Noise Myths Most developers attend community meetings armed with facts and figures on power draw, water consumption, and noise abatement. But opposition can harden to the point where data isn’t persuasive. Slezak suggested that touring people around a comparable facility can make a difference. “I can tell them that you consume less water in a hyperscale campus than a restaurant would, but they often don’t believe me,” he said. “It is sometimes better to show them. I’ve toured groups through a facility and shown them our closed-loop system where there is no water consumption.” Closed-loop designs can significantly reduce process water usage compared to traditional evaporative systems. Target Pro-Data Center Regions like NELA and Texas Not every community and jurisdiction is opposed to data centers. For every area that resists them, another is eager to attract them. Parts of Louisiana, for example, are encouraging more development. “We are attracting plenty of interest from developers,” said Rob Cleveland, president and CEO of Grow NELA (Northeast Louisiana Regional Economic Development Authority). Attractive policies are part of the reason. Cleveland noted that Grow NELA has cut permitting timelines to 15 days, compared with many states that can take more than a year. Many parts of Texas have also become attractive to developers. Despite lengthening interconnection queues, the state is scrambling to add more power – both grid-scale and on-site. The Electric Reliability Council of Texas (ERCOT) and the Governor’s Office have issued measures to ensure grid stability and protect ratepayers from cost pass-throughs. Exit Markets with Entrenched Opposition If opposition is vociferous and unrelenting, it may be time to walk away. There are cases where developers were willing to meet local demands on power, water, and noise, yet new objections kept emerging. If a community truly does not want the project, it may be more productive to find a location that does. “There are a lot of communities that will welcome you,” Slezak said.
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