In the last decade, communities and states have welcomed and actively recruited data centers and their millions of dollars in new tax revenue. Communities were clamoring to be part of the next technological revolution. Virginia has by-right zoning for data centers. Georgia, Illinois, Indiana and 24 other states have tax incentives or economic development policies to recruit data centers.

So, what happened?

  • In Virginia, Prince William County is looking to increase taxes on data centers.
  • Loudoun County, Virginia, is looking to end by-right zoning for data centers. The City of Leesburg (in Loudoun County) already ended it. County residents have even called for a data center moratorium.
  • The Georgia State Legislature recently passed legislation that would place a two-year moratorium on tax incentives allotted to the data center industry (even though the Governor ultimately vetoed it).
  • Arizona, Illinois and Arkansas have passed laws to suspend data center development or further restrict where they can be built.
  • In early June, a $1.3 billion data center proposal was pulled from an Indiana town after city council members announced their opposition.

What do you do?

The development of this critical infrastructure is increasingly hampered by local opposition and a surge in Not-In-My-Backyard (NIMBY) sentiment. Today, there must be more than the promise of millions of dollars in future tax revenue. To navigate this challenging landscape, data centers must localize the benefits and foster grassroots support to decrease local opposition.

Interested in learning more? Read on to learn what the local siting experts at The Hawthorn Group have to say.