The Next Phase of the Data Center Battle is Coming
Unless you live under a rock, you know that the great American AI data center build-out has hit a reputational brick wall. Advocacy groups, communities, local jurisdictions and even some politicians who bragged about attracting data center companies are all sounding the alarm.
Their messages are remarkably consistent. What will data centers do to our water and electricity availability and costs? What about landowner rights? Why do we need to build these so quickly? What are the long-term consequences? What are we going to get out of this historic economic boom?
My colleagues and I work at some interesting intersections. We know elected officials in urban communities. We work with environmental organizations and tech companies. We proudly work with people from both sides of the aisle (so long as their missions align with ours). And we’re hearing strangely similar rhetoric coming from all corners — as if data centers decided they wanted to be the first issue in decades to unite all Americans.
My two biggest takeaways so far:
- The data center debate isn’t settling down. I think it’s just getting started.
- Communities are speaking clearly, and the tech industry has not shown — with words or deeds — that it’s listening very well.
If you’re a communicator, you know that you have to speak to your audience’s needs and values. Communities around the country are saying exactly what they care about. Smart tech companies should listen and respond in words and deeds that demonstrate they’ve read the memo. This isn’t a messaging problem you can spin your way out of.
Here’s what we’re hearing and what you should consider for your organization when communicating about the data center debate.
Embrace Transparency
Regular people feel like they’ve been intentionally kept in the dark. Companies and local officials should work overtime to rewrite that narrative.
The good news is that many data center companies have halted the use of NDAs with public entities. That’s a good start. But they haven’t replaced secrecy with real transparency. How much water? How much power? What tax breaks? Who pays? When will you build? Have you signed tenants? How many long-term local jobs (not transient construction jobs)? The same is true of local governments. Who have you met with, and what promises have you made?
Drop the Patriotism Pitch
Sorry. Even if a company truly thinks that America needs to win the AI war for national security reasons — and there are good reasons to think so — the tech industry has a credibility problem. Waving the flag is not a winning strategy. People care about local impacts: water, energy, land, costs and lasting community benefits. These issues offer much more fertile soil for companies.
Add Air Quality to Your Mitigation Strategy
We’ve heard about water and energy impacts of data centers, and now air pollution is making the news. And I’m not just talking about carbon. I’m talking about pollutants like NOx, SOx and fine particulates that industry and regions around the country have spent decades improving. The rules surrounding industry’s recent “bring your own power” initiative are woefully silent on these pollutants. Many companies are already stretching the definition of “temporary” and “backup” power to exploit emissions loopholes. Companies that want to be welcomed into communities need to demonstrate they care about their long-term and cumulative impact on air quality and devote meaningful budgets to minimize it.
Guarantee Genuine Long-Term Local Benefits
If you tally all current local skepticism, it all points to one broad belief: people don’t think the cost is worth the risk.
Maybe that’s not true. Maybe this boom will bring unimaginable and universal benefits. But the tech industry often leans on the kinds of talking points used to win over the Chamber of Commerce, mainly increased tax revenue and temporary construction jobs.
Do normal people care about more tax revenue if everything costs more and their highways are clogged? I’m waiting for one of the mega AI companies — you know who they are — to make a genuine 20-year pledge to a community. Here’s how much money we’ll donate to your community, and here’s what you’ll get. The more companies talk like normal people and not a boardroom pitch deck, the more people will believe it.
Flip the Incentive Equation
Tax incentives are used to lure companies to a region they likely wouldn’t choose without them or to sweeten a competitive deal. But in 2026, it’s hard to think of a state whose residents want data centers in their backyards. Communities are taking a hard look at tax rebates and other financial incentives. Some leaders vow to end all incentives for data centers. A smart company with a billion-dollar budget would flip the script and offer tangible incentives to the communities where they want to build.
For any company (suppliers, power producers, construction, hyperscalers) in the middle of this debate, the five issues above will determine forward movement of this buildout. Each subject needs to be considered and addressed whenever speaking externally about this sensitive and colossal market expansion.
I believe there are companies and partners across the data center ecosystem that truly want to do things the right way. But I think they are outnumbered, and I don’t think they’ve done enough to distinguish themselves from the speculators and opportunists. The damage has already been done, and moving forward, hyper-listening and real on-the-ground commitments will be required.