Datacenter operators must win hearts and minds, not just permits

Schneider Electric maintains a robust outlook for its datacenter business, but operators need to engage more with communities regarding the consumption of power, water, and land for their projects. As a supplier of electrical infrastructure, cooling, and power distribution equipment, Schneider has insights into operators' spending plans and derives revenue from ongoing construction.

Steven Carlini, vice president of innovation and datacenter, noted that the company's pipeline shows no slowdown, and it has agreements with major datacenter operators. Reports this year indicated that only half of the capacity planned for 2026 is under construction in the US, and land clearance for new datacenter projects has reached a plateau.

Carlini claimed that US companies are building as quickly as possible, contrasting this with planning bureaucracy and other obstacles in Europe. However, the key change is likely to be the level of transparency from operators when seeking permits and power. In the past, US operators negotiated permits with local jurisdictions without non-disclosures, leaving residents unaware of construction projects until they began.

Opposition to datacenter construction has increased in the US, with a moratorium imposed in New York state and Meta's Hyperion facility, planned to reach 5 GW, facing significant opposition. A recent Pew Research Center survey found that Americans are increasingly concerned about datacenters' environmental impact, higher energy bills, and water consumption.

To address these concerns, companies must be more open about their plans, disclosing power sources, water usage, carbon emissions, efficiency, location, noise levels, and water sources. In Virginia, the data center capital, AWS is facing legal action for publishing false and misleading statements about water use. Carlini expects permitting requirements to require greater disclosure, followed by reporting obligations during operations.

Datacenter owners and operators must win hearts and minds, as recognized by some industry professionals at a recent event. From a public relations standpoint, operators need to focus more on community engagement, acknowledging concerns, and explaining benefits like tax breaks or lower costs. For AI facilities, Carlini anticipates increased focus on token-processing performance and efficiency rather than just power capacity alone.

The industry has traditionally sized datacenters in power consumption, which provided little information about value added. Looking ahead, the industry may shift to sizing datacenters in tokens, such as tokens per watt or dollar, making them more performance-based.