Compare Data Center Proposals: A Community Guide

Updated 15 November 2026 · Standard formula, shown below

This guide helps community members, local officials, and stakeholders systematically compare data center proposals. You’ll learn what to look for, how to weigh trade-offs, and how to ask the right questions—so your community can make an informed decision that balances economic benefits with environmental and infrastructure impacts.

What You’ll Need

Copies of each proposal (often available from the developer or local planning office)
Local zoning and land-use regulations
Utility rate schedules and capacity information (electricity, water, internet)
Property tax rates and any incentive agreements under discussion
Environmental review documents (draft EIR/EIS, if available)
Contact information for the developer’s project manager and local planning staff
A simple spreadsheet or comparison matrix (paper works too)

Step-by-Step

Create a comparison matrix. List the key criteria across the top: location, size (MW), water use, jobs promised, tax revenue, timeline, and any special conditions. Each proposal gets a row. This will be your master document.
Verify the basics first. Check the proposed site’s zoning, flood risk, and proximity to residential areas, schools, and environmentally sensitive lands. If a proposal requires a zoning change or variance, note that as a higher hurdle.
Compare power needs and sources. Look at the total electrical load (in megawatts) and the source. Is it renewable, natural gas, or grid mix? Ask if the developer is committing to on-site solar or battery storage. A 100 MW facility is very different from a 10 MW one in terms of grid impact.
Assess water consumption. Data centers use water for cooling. Compare gallons per minute (or per hour) and whether the water comes from municipal supply, wells, or recycled sources. Look at the cooling technology—air-cooled vs. evaporative—and the local water stress index.
Count the real jobs. Proposals often tout “construction jobs” and “operational jobs.” Ask for the number of permanent full-time employees after build-out. Also ask about average wages and benefits. A facility with 30 permanent jobs is a different economic story than one with 300.
Estimate tax revenue honestly. Find out the assessed value of the proposed building and equipment, the local tax rate, and any abatement or incentive agreements. Calculate the net annual revenue to your community. Be wary of “gross” numbers that ignore abatements.
Review the timeline and phasing. When does construction start? How long does it last? When does the facility become operational? Are there penalties for delays? A 5-year build-out may not align with your community’s immediate needs.
Check for community benefits and mitigations. Look for voluntary payments (e.g., to schools, roads), noise buffers, visual screening, and commitments to hire locally. These are often negotiable—ask for them in writing.
Evaluate the exit plan. What happens at the end of the facility’s life? Is there a decommissioning plan? Who pays for cleanup? This is often overlooked but critical for long-term liability.
Hold a public meeting. Invite the developers to present, but also have an independent expert (e.g., from a university or a non-profit) explain the technical details. Let residents ask questions directly.
Read the fine print on incentives. If the proposal includes tax abatements or infrastructure improvements, compare the net benefit. A $10 million abatement on a $100 million investment is a 10% give-back. Is that worth the jobs?
Score each proposal. Use a weighted scoring system (e.g., 1-5 for each criterion, with weights for what your community values most—jobs, environment, revenue). This makes the trade-offs visible.
Make a recommendation. Based on your matrix, decide which proposal best meets your community’s goals. Present this to your planning board or city council with clear reasoning.

Common Mistakes

Focusing only on construction jobs. These are temporary and often filled by workers from outside the area. Permanent jobs matter more for long-term community impact.
Ignoring water and power infrastructure costs. The community may need to upgrade substations or water lines—who pays for that? Often the developer, but sometimes the ratepayers or taxpayers end up footing the bill.
Taking “green” claims at face value. A “carbon-neutral” data center may be using renewable energy credits rather than actually powering the facility with renewables. Ask for specifics.
Forgetting about noise and light pollution. Backup generators and cooling fans can be loud. Ask about noise studies and any restrictions on nighttime operations.
Overestimating tax revenue. Many proposals include abatements that reduce the actual revenue. Always use the net figure, not the gross.

Tips

Bring in an independent technical advisor. A local university or a non-profit like the Uptime Institute (or a similar body) can help you understand the specs.
Ask for a “community benefits agreement” in writing. This is a legal document that locks in commitments like local hiring, road improvements, or annual payments.
Compare apples to apples. If one proposal is 50 MW and another is 10 MW, adjust the numbers per MW to make a fair comparison.
Look at the developer’s track record. Search for other data centers they’ve built. Did they follow through on promises? Were there complaints?
Consider the cumulative impact. If your community already has several data centers, the additional strain on water and power may be more significant than the individual proposal suggests.

Troubleshooting

You can’t get the full proposal. Some parts may be confidential. Ask the developer to provide a redacted version or a summary. If they refuse, that’s a red flag.
The numbers don’t add up. If the tax revenue seems too high or the water use too low, ask for the assumptions behind the numbers. A good developer will provide a transparent breakdown.
Residents are split. Hold multiple town halls and create a FAQ document that addresses common concerns. Sometimes a neutral facilitator helps.
The developer changes the plan mid-review. Document all changes and re-run your comparison. Don’t accept verbal promises—get everything in writing.
You feel overwhelmed by the technical jargon. Ask the developer to explain in plain language. If they can’t, that’s a sign they may not be a good partner.

Frequently Asked Questions

How much water does a data center actually use?

It varies widely. A typical hyperscale facility can use millions of gallons per day for cooling, but modern designs with closed-loop or air-cooled systems can reduce that dramatically. Always ask for the specific cooling technology and the expected water usage per MW.

Do data centers create many permanent jobs?

Usually not many. A large data center might employ 20–50 full-time staff, plus some contractors. The economic benefit is more often in tax revenue and construction jobs than in ongoing employment.

What is a “hyperscale” data center?

It’s a facility designed to support massive cloud computing, often exceeding 100,000 square feet and 10 MW of power. They’re built by companies like Amazon, Google, Microsoft, and Meta, but many are also built by third-party providers.

Can a data center run on 100% renewable energy?

Yes, but it’s often done through power purchase agreements (PPAs) or renewable energy certificates (RECs) rather than on-site solar. This is still a positive, but it doesn’t mean the facility is off the grid.

What are the main environmental concerns?

Water consumption, energy use (and associated carbon emissions), noise, and visual impact. Also, the manufacturing of servers and cooling equipment has an upstream carbon footprint.

How long does it take to build a data center?

Typically 18–36 months from groundbreaking to operation, depending on size and complexity. Some smaller facilities can be built in under a year.

Method: the standard formula for this calculation, rounded as each result states. See how the calculators work or report an error.