Compare a proposed data center with both a no-build scenario and realistic alternatives for the same parcel. Use the same time horizon and assumptions for each option, then weigh land use, infrastructure costs, net public finances, jobs, environmental and neighborhood effects, and enforceable commitments. The right answer depends on local conditions and the proposal; there is no universal case for approving or rejecting data centers.
Start with the parcel, the alternatives, and the no-build case
A proposal should not be compared with an imaginary alternative such as “more jobs” or “more tax revenue.” First establish what can realistically happen on this specific land, with and without the data center.
Define the baseline
Document the parcel’s current use, ownership, zoning, physical constraints, and existing infrastructure. Describe the likely future if the proposal does not proceed: continued current use, vacancy, maintenance, another planned use, or something else supported by local evidence. Include the opportunity cost of rejecting the project rather than treating no-build as cost-free or as a guaranteed alternative development.
Choose feasible alternatives
Identify alternatives using local plans, market evidence, site conditions, and community priorities. Depending on the parcel, possibilities could include housing, commercial or industrial development, agriculture, public facilities, or conservation. These are categories to test, not presumed entitlements: zoning, access, utilities, environmental constraints, demand, and ownership may make some infeasible. Explain why each option belongs in the comparison and what evidence supports it.
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Compare options over the same project life and with the same assumptions about timing, inflation, tax treatment, service costs, and the value of land. A short construction-period estimate for one option is not comparable to decades of projected data-center operations.
Use a common evidence checklist
Ask the applicant for documented, project-specific information, then assess each alternative against the same questions. The table is a starting framework, not a claim that every local government has legal authority over every issue.
| Issue | Evidence to request | Comparison test |
|---|---|---|
| Land and siting | Current use, zoning, site plan, alternatives analysis, market evidence, local planning documents | What feasible use or public value would be displaced, and what is likely under no-build? |
| Electricity and grid | Peak and annual load forecasts, connection timing, planned upgrades, reliability assumptions, written utility input, and cost allocation | What new capacity or upgrades are needed, who pays, and could existing customers face higher costs or reduced availability? |
| Water and wastewater | Water source, demand by season and project phase, wastewater needs, cooling assumptions, and local drought or supply conditions | Can the supply meet the project’s needs under current and future conditions without displacing higher-priority uses? |
| Public finances | Independent life-cycle analysis of tax receipts, abatements, incentives, fees, service needs, infrastructure costs, and continuing liabilities | What is the net public value over time after public costs and incentives? |
| Jobs and economic effects | Construction and permanent job counts separately, wages, local hiring, training, and vendor or service effects | Are jobs durable and accessible to local workers, and proportionate to the land and public support committed? |
| Environment and quality of life | Emissions, generator use, noise and light studies, stormwater plans, traffic, habitat impacts, and cumulative effects | Who experiences each impact, how can it be measured, and what mitigation is enforceable? |
| Design and neighborhood fit | Building height and massing, setbacks, buffers, operating characteristics, landscape plans, and reuse options | Could an existing or previously disturbed site reduce land conversion or neighborhood impacts? |
| Delivery and accountability | Permits, milestones, utility coordination, public reporting, incentive triggers, and end-of-life plans | Can commitments be monitored and enforced if the project changes, underperforms, or closes? |
Check the land and siting fit
A data center’s land footprint includes more than its building. Consider the parcel area, building height and massing, setbacks, buffers, landscaping, access roads, construction disturbance, traffic, and proximity to homes or sensitive uses. Compare these characteristics with those of the alternatives, including how much land each would occupy and what would remain available for other uses.
Ask whether existing buildings, retired industrial sites, or other previously disturbed parcels already served by infrastructure could accommodate the project. The Bipartisan Policy Center (BPC) recommends considering a “build up, not out” presumption that prioritizes such locations before farmland or greenfields are converted. This is a planning consideration, not a universal legal requirement; local conditions and rules determine what is possible.
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Trace infrastructure needs and costs to the party that pays
Large electricity demand, water needs, broadband connections, and road improvements can affect both project feasibility and the community. Request load and demand forecasts, connection schedules, upgrade plans, and written input from relevant utilities. For each proposed improvement, distinguish work the project would require from upgrades that would happen anyway.
Electricity
Compare the project’s peak and annual load forecasts with the utility’s stated capacity, connection timeline, and planned upgrades. Ask which costs are assigned to the applicant and whether any costs could be borne by existing customers. Also ask how the project’s demand fits with local reliability and future capacity planning; a general claim that electricity is available is not a project-specific assessment.
Water, broadband, and roads
Request water demand by season and phase, the proposed source, cooling assumptions, and wastewater requirements. Compare those needs with local supply and drought conditions, including future demand from households and other users. Identify broadband and road work the project depends on and who would fund it. Pennsylvania’s Department of Community and Economic Development (DCED) Data Center Planning Toolkit organizes review around power, water, broadband, land use, fiscal and service effects, and planning and legal considerations. It is guidance for Pennsylvania officials, not a nationwide rule.
Calculate net public value, not headline investment
An announced investment amount does not show how much the community gains. Compare public revenue with public costs over the same time horizon, using assumptions that are disclosed and, where material, independently reviewed.
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- Revenue: Estimate taxes actually expected after exemptions, abatements, and other incentives. Distinguish one-time receipts from recurring revenue.
- Public costs: Include project-related infrastructure, public services, administration, and any continuing liabilities. Identify which costs would arise only because of the project and who bears them.
- Community contributions: Record any proposed payments or benefits separately from tax revenue, with timing, recipients, and conditions specified.
- Time and uncertainty: State the analysis period, assumptions, and uncertainty for each estimate. Do not compare a guaranteed cost with an optimistic projection as though they had equal certainty.
BPC recommends tying incentives to verifiable outcomes and tracking benefits over time. If local law permits, a fiscal analysis can show what changes when an incentive is granted, when a milestone is missed, or when a promised contribution is delayed.
Separate construction work from permanent jobs
Construction employment is temporary; operating jobs are the positions needed once the facility is running. Request separate counts and time periods for each, rather than a combined job headline. Ask for wage ranges, expected local hiring, training pathways, and the skills or credentials required. Compare those figures with feasible alternatives and the amount of land, infrastructure, and public support each option uses.
Economic claims should also identify where and when benefits accrue. Vendor activity or wider regional benefits do not necessarily reach the residents who live nearest the site or use the public services affected by it. The Citizens Research Council of Michigan’s June 16, 2026 report summary recommends case-by-case review and distinguishes large hyperscale facilities from smaller data centers. Its Michigan-focused conclusions describe economic benefits as modest and concentrated in construction, while noting possible host-community benefits from property taxes or community benefit agreements. Those conclusions are not a forecast for another project or jurisdiction.
Compare environmental and neighborhood effects
Request evidence about water stress and water quality, routine and backup-power emissions, generator operation, noise, lighting, stormwater, traffic, habitat, and construction disturbance. Consider cumulative effects alongside other existing or proposed development. Identify the locations and people affected, the assumptions behind each estimate, and the mitigation proposed.
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Cooling and power choices belong in the project-specific assessment, but a design feature should not be counted as a benefit without evidence of its expected effect at this site. Compare the proposal with alternatives on the same basis: for example, use consistent assumptions for traffic, water availability, emissions, and noise rather than evaluating one option in detail and leaving the others unexamined.
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Before treating a mitigation or community benefit as part of the project’s value, find out whether the relevant jurisdiction can legally require it and how compliance would be checked. A commitment is more useful when it names a responsible party, a measurable outcome, a deadline, a reporting method, and a consequence for failure.
- Use public reporting to disclose relevant performance and impacts on a defined schedule.
- Where legally available, tie incentives to verified milestones and outcomes rather than promises alone.
- Coordinate with utilities so that connection plans, upgrades, and cost allocation are documented.
- Consider monitoring requirements and mitigation triggers for impacts such as noise or water use.
- Address closure and end-of-life responsibilities at the outset, including financial assurance and site restoration where appropriate and legally available.
BPC identifies transparency and communication; power and water use, infrastructure, and affordability; quality of life; land use and environmental impacts; and economic development as connected areas for review. It states, “There is no one-size-fits-all solution to siting data centers in local communities.” Minneapolis illustrates a local rulemaking approach rather than a settled standard for other places: a city page last updated September 14, 2026 described preliminary recommendations concerning conditional-use review, facility location and size, disclosures about water, electricity, generators, and sound attenuation, and evidence of utility coordination. The page described a future adoption process, so those recommendations should not be treated as enacted rules without checking the city’s current status.
Show who benefits, who bears impacts, and what is uncertain
Present distribution and timing alongside totals. Identify which residents, services, businesses, and levels of government are expected to receive benefits, and which may experience noise, traffic, resource constraints, or added costs. State what is known, what depends on projections, and which assumptions could change the result. Regional benefits do not automatically compensate the people or services bearing local impacts.
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One broad figure should not be used as a substitute for a parcel-level comparison. BPC’s 2026 report cites an estimated $13.1 billion in tax revenue and 99,000 direct and indirect jobs from data centers in California in 2023, citing the industry source Center of Your Digital World. This is a California-specific reported estimate, not a per-facility return, an independent causal estimate, or a forecast for another jurisdiction. It cannot establish the net fiscal return or jobs from a particular parcel.
Adapt the method to local rules and evidence
Planning, zoning, utility regulation, environmental review, tax law, and permitting authority vary by jurisdiction. Check the current rules that apply to the actual parcel before treating a proposed condition, incentive, or mitigation measure as enforceable. Pennsylvania’s DCED toolkit is one state example of organizing review from an initial inquiry through zoning, permitting, and long-term planning; it does not replace local legal advice or project-specific analysis.
For an actual proposal, the decisive facts are local: zoning eligibility, utility capacity and upgrade costs, water availability, tax treatment, comparable land value, and the conditions decision-makers may legally impose. If a material benefit or infrastructure effect depends on a complex projection, request an independent analysis and disclose its assumptions and date.
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