I’m a data center CEO. Communities deserve better partners, not blanket bans

In New York, a statewide moratorium on large-scale data center construction has been imposed, potentially setting a precedent across the country. This decision has stirred controversy, as communities across the nation grapple with the tension between development and their need for reliable digital services. Frankly, some of this skepticism is well-earned, as data center developers have often failed to engage effectively with the communities they aim to serve.

This is not a sudden shift in sentiment. Rather, it reflects a growing awareness that engaging communities isn't a mere formality, but a crucial step in the process.

Compass Datacenters' CEO, Chris Crosby, has been building data centers for two decades, emphasizing the importance of "building like you intend to live next door." This principle applies even as public scrutiny has intensified. Banning data centers outright doesn't address the core issue; instead, it risks crippling the very digital infrastructure we rely on.

From mortgages to emergency responses, data centers power critical services. The answer isn't to halt construction, but to build trust. This trust must be earned through transparency, consistent communication, and measurable commitments.

Developers should go beyond mere promises and demonstrate their commitment through concrete actions. For example, they should be willing to pay for the additional infrastructure needed, such as substations and transmission lines, rather than shifting these costs to local residents. They should also be transparent about resource usage and accountable for their actions, even after construction has ended.

The industry should adopt a higher standard, judging developers not just on their initial proposals, but on their track record. Are they willing to pay for the infrastructure their project requires? Do they manage water usage responsibly? Are they clear about the impact on local communities, both during and after construction?

Commercial real estate has a standard for quality: Class A buildings are well-constructed, well-located, and professionally operated. Data centers should also meet these standards, but with an added focus on community impact. Does the developer pay for necessary infrastructure, manage resources sustainably, and maintain open lines of communication?

When political leaders call for stricter standards, the response should be to raise the bar for all developers. By holding every developer to the same standard, communities can ensure they receive the benefits of data center development, including jobs, tax revenue, and improved services, while minimizing any negative impacts.

The key lies in asking the right questions and demanding accountability. Developers should be prepared to answer five crucial questions: who will pay for the infrastructure needed, where will the water come from, how long will the developer operate the center, what local benefits will be realized, and whether the developer has experience in similar projects.

Ultimately, the future of America's digital economy hinges on whether companies can earn the trust of the communities where they operate. This trust is not given, but earned through consistent, transparent actions that benefit the community over the long term. Developers must work hard to prove they are worthy partners, not just passing through.