How Community Engagement is Shaping the Future of Data Centers

7/17/2025

Data centers continue to expand across the U.S. to support cloud computing, artificial intelligence (AI) and edge connectivity. As they do, they’re also bringing increasing power demands and even bigger construction footprints. However, during a recent panel at the Green Building Initiative’s Data Center Seminar, industry experts urged developers and operators to see beyond energy usage and construction timelines and think seriously about the communities where they are building and making an impact. 

Community engagement isn’t just about good PR. When done well, it’s also a strong engine for local economic development. 

This is how leaders are thinking about building data centers that don’t just consume local energy but also positively contribute to their communities. 

Economic transformation 

Virginia’s Loudoun County has a strong local economy. However, it wasn’t always strong according to Buddy Rizer, executive director at Loudoun Virginia Economic Development. Nearly two decades ago, the county faced a lot of economic struggles. 

“I started 18 years ago on Data Center Alley – started building, started pulling things together and leveraging the resources,” Rizer said. 

Related Content: AI Contributes to Rising Growth of Today’s Data Centers

Flash forward to the current day, data centers have turned a 19 percent commercial tax base into a billion-dollar-a-year industry, reducing the average homeowner’s taxes by $3,500 per year. What was once a county on the brink of financial disaster became a hotspot for economic activity. 

“We should be talking about this transformation more,” Rizer said. “The industry can transform communities.” 

Community engagement can support business goals and act as a multiplier if done right. Although, that doesn’t mean engaging the locals comes without its hardship. 

Messaging and mistrust 

The data center industry has struggled with getting its message out, Rizer said. Without proper messaging about intentions being conveyed clearly to the local citizens, resistance can emerge.  

That was the case when a utility failed to engage its residents before a major power line upgrade, according to Taryn Boland, chief of staff at the New Jersey Board of Public Utilities. The residents then formed “RAGE” (Residents Against Giant Electric) who then hired lawyers and ultimately derailed the project. 

The right planning and messaging can inform locals and even assuage their concerns. However, wrong messaging can create hostility and pushback. Overall, without early and meaningful outreach, even a well-meaning project can face community backlash. 

“Communities fear what they don’t understand,” Rizer said. “The industry has to stop being silent and start countering misinformation with facts and empathy. If we can’t figure out how to do that messaging, we’re going to keep facing tough headwinds.” 

Community engagement is an ongoing effort, not just a one-time deal. Operators need to invest in consistent and transparent communication. 

Data centers can have myriad benefits for a local community, even transformative ones, but those benefits aren’t going to speak for themselves. Developers and operators must lead these initiatives with transparency, engagement that’s early and frequent and show communities that data centers aren’t just extracting value; they’re helping build a more sustainable and prosperous future. 

Jeff Wardon, Jr., is the assistant editor of the facilities market.