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Compare every proposal on one consistent, project-specific scorecard: verified construction and permanent jobs, gross taxes minus incentives and public costs, and the electricity and water demand that the community must serve. Keep forecasts separate from measured results, state the time horizon and assumptions beside every number, and require recurring public reports so the scorecard can be updated after construction and during operation.
Start with a single comparison sheet
Different developers often describe benefits in incompatible ways. One may count peak construction employment, another may count full-time operations positions, and a third may quote a gross tax figure before exemptions. Create one worksheet for each proposal and require the same fields, definitions, units, and forecast years for all of them.
| Outcome | What to record | Evidence to request |
|---|---|---|
| Jobs | Construction and trade jobs; ongoing facility jobs; duration; wages; benefits; local hiring; apprenticeships | Payroll or contractor records, job definitions, hours, wage schedules, hiring addresses, apprenticeship records, and an audit method |
| Net public revenue | Gross state and local taxes; exemptions; grants; public services; infrastructure and ratepayer costs; net fiscal impact | Tax model, incentive agreements, service-cost estimates, capital budgets, utility studies, and sensitivity cases |
| Resource use | Peak and annual electricity demand; water withdrawal and consumption; cooling system; timing; upgrades; payer for upgrades | Load studies, interconnection documents, water-demand calculations, permits, drought assumptions, and utility validation |
Attach the proposal’s end user or tenant, project phases, construction schedule, energy plan, water source, and cancellation or delay consequences to the same sheet. A planned campus that is never fully built should not be scored as if every phase were operating.
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Identify the end user and project phase
Ask who will occupy the facility, whether the tenant is committed or merely prospective, and which buildings, substations, generators, and cooling systems belong to each phase. Record announced capacity separately from contracted capacity and from actual operating load. If a proposal has several phases, assign jobs, taxes, electricity, and water to each phase rather than reporting one campus-wide maximum.
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Fix the time horizon
Use the same years for every proposal—for example, construction years, the first three operating years, and a longer asset-life view if the incentive lasts longer. Label each value as a forecast, a contract commitment, or an observed result. Put the model date, source, assumptions, and uncertainty next to the number; do not blend a developer’s forecast with utility-measured consumption.
Set a baseline
Document current employment, tax collections, electricity sales, water demand, spare utility capacity, and planned public capital spending before approval. The baseline lets officials distinguish new activity from jobs or upgrades that would have occurred without the project.
Measure jobs without overstating employment
Separate construction from permanent operations
Construction and trade employment is temporary and may be concentrated in a short build period. Ongoing facility employment includes technicians, security, maintenance, administration, and other positions that remain after commissioning. Show each category separately, with start and end dates. Never present construction jobs as continuing operations employment.
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For every reported position, require the developer to state whether it is a person, a full-time-equivalent position, or a job-year. Record total labor hours, duration, pay rate, benefits, employment status, and the employer or contractor. A count of 500 one-month job assignments is not equivalent to 500 permanent jobs.
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Test local access and job quality
- Define “local” by a published geography, such as the host county or a specified commuting area.
- Report residents hired, residents trained, and residents retained separately.
- List hourly wages or salary bands, benefits, and whether positions are direct or contractor jobs.
- Set apprenticeship targets by trade and report enrollments, completions, and hours.
- Describe recruitment, transportation, childcare, credential, or other access measures if they are part of the commitment.
Build verification into the agreement
Require payroll, certified payroll, timekeeping, contractor rosters, and tax or workforce records that can be checked without exposing personal information. Specify who audits the records, the reporting date, a correction process, and remedies for missed targets. Washington’s 2026 JLARC audit illustrates why this matters: its rules did not require beneficiaries to describe project work, job duration, wages, or total labor hours, and reported positions had not yet been verified against statutory targets.
Use the Washington figures as a measurement lesson, not a benchmark
Washington State JLARC reported 296 construction and trade jobs across three beneficiaries’ refurbishment projects in 2023 and 2024. The same review reported 53 cumulative family-wage jobs—13 in 2023 and 40 in 2024. Those are different categories and periods, and JLARC said it could not yet verify whether the positions met statutory requirements. The figures describe that Washington program; they are not an expected jobs ratio for another jurisdiction.
Calculate net public revenue, not just a tax headline
Show gross revenue by source
List property, sales and use, utility, business, payroll-related, and other applicable taxes by government level and year. Explain the taxable base, assessed value, rates, collection timing, and whether the estimate depends on a tenant that has not signed a binding agreement.
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Subtract incentives and public costs
Net fiscal impact is the project-attributable revenue minus tax exemptions, credits, grants, publicly financed infrastructure, additional staffing, emergency services, road work, utility capacity, and other recurring or one-time costs. Keep gross revenue and net impact in separate columns. Include costs paid through rates when the utility or water provider passes project upgrades to existing customers.
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Maryland Executive Order 01.01.2026.16 directs consideration of “The net fiscal impact on the State and host jurisdiction after accounting for incentives and public costs, and whether economic commitments are measurable, time-bound, publicly reported, and subject to periodic review.” Use that as a checklist for the model rather than treating a gross tax estimate as the answer.
Model uncertainty and timing
Present a base case and sensitivity cases for construction cost, assessed value, occupancy, electricity price, water charges, incentive duration, and project delays. Discount or otherwise identify the timing of payments and costs so a one-time construction tax is not mistaken for recurring operating revenue. State which assumptions are controlled by the developer and which are validated by public agencies.
Ask what the incentive actually buys
For each exemption or credit, record the legal authority, eligibility threshold, duration, phase covered, reporting duty, clawback or recapture rule, and sunset or review date. Delaware’s Division of Research describes incentive designs that tie benefits to investment, job counts, and wages; those examples are prompts to identify the exact local obligations, not evidence that Delaware terms apply elsewhere.
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Virginia’s statutory report for fiscal years 2024 and 2025 requires the state to report the tax benefit and a return-on-investment analysis including direct and indirect jobs and state and local tax revenue. It is a useful model for asking what an incentive costs and which outcomes are measured. Confirm the report’s detailed figures and the current rules before applying them to a new proposal or another jurisdiction.
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Measure electricity demand and who pays for it
Report peak, contracted, and annual use
Request peak megawatts, contracted capacity, expected annual megawatt-hours, ramp-up timing, and a range for utilization. Distinguish the facility’s maximum design load from the load the utility has agreed to serve and from metered consumption after commissioning.
Price the system consequences
Identify substations, feeders, transmission, generation, backup generation, and interconnection work required for each phase. State whether the developer, utility, public budget, or existing ratepayers pay for each item, and whether a security, contribution, or minimum-load obligation protects the payer if a phase is delayed or canceled. Ask the utility to validate both capacity and upgrade schedules independently of the developer’s forecast.
Interpret the Washington electricity estimate correctly
For four eligible Washington centers, JLARC estimated approximately 427,000 MWh of electricity use in 2024, equal to 1.4% of total electricity sales for the two utilities in its analysis. The estimate relied in part on facility capacity and owner-reported utilization. JLARC also noted that data centers were not required to report electricity use, limiting year-over-year comparison of actual use and taxes. These are Washington program estimates, not a general benchmark for another grid.
Include the energy plan
Record the proposed supply mix, storage or backup arrangements, efficiency commitments, and any renewable or clean-energy claims with their accounting boundaries. A claim about contracted supply does not by itself establish that local peak capacity, transmission, or reliability impacts have been solved.
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Measure water withdrawal, consumption, and constraints
Use the right units
Report water withdrawal—the volume taken from a source—and consumptive use—the portion not returned to that source—separately. Include average and peak demand, seasonal variation, source, discharge destination, treatment needs, and the expected date each phase begins using water.
Describe cooling and alternatives
Identify cooling technology, operating temperatures, air or liquid systems, reuse or reclaimed-water options, and the conditions under which demand changes. Ask for alternatives that reduce potable-water use and for the capital and operating cost of each alternative.
Test supply and drought resilience
Have the water provider confirm available capacity, treatment and conveyance upgrades, permit limits, drought or low-flow constraints, and the effect on existing customers. Assign every upgrade and ongoing service cost to a payer. Require public disclosure of withdrawal and consumption during operation, not only a one-time design estimate.
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Maryland’s order directs agencies to consider water availability, cooling alternatives, ongoing disclosure, local ratepayer and infrastructure effects, and the project’s electricity demand and water needs. Those criteria support a project-specific water balance; they do not establish a universal acceptable consumption threshold.
Compare two or more proposals on identical axes
| Axis | Questions to ask | Decision warning |
|---|---|---|
| Employment | How many permanent local jobs remain after construction? What are wages, benefits, access, and apprenticeships? | A large construction peak can hide few long-term positions. |
| Fiscal return | What are gross taxes, incentives, public costs, ratepayer costs, and net present or annual effects? | Gross revenue is not net public benefit. |
| Electricity | What are peak load, annual use, ramp schedule, upgrades, and payment responsibility? | Design capacity is not measured consumption. |
| Water | What are withdrawal, consumption, source, cooling method, seasonal peak, and drought constraints? | Withdrawal and consumption are not interchangeable. |
| Execution risk | Is the end user committed? What happens if a phase is delayed, downsized, or canceled? | Uncontracted capacity should not receive the same certainty as an operating phase. |
| Accountability | Are reports public, independently verified, periodic, and tied to remedies? | Unverified commitments are forecasts, not outcomes. |
Do not create a universal jobs-to-tax-revenue score or resource-use cutoff. The available official examples establish no across-the-board ratio or threshold; outcomes depend on local tax law, project type, grid, water system, and incentive design.
Turn the scorecard into enforceable conditions
- Publish a baseline. Release the employment, tax, electricity, water, and infrastructure assumptions used before approval.
- Define measurement methods. Specify job categories, wage calculations, local geography, labor-hour treatment, tax attribution, meter boundaries, electricity units, and water withdrawal and consumption definitions.
- Phase commitments. Tie jobs, incentives, utility service, and reporting to each construction and operating phase.
- Set reporting dates. Require construction reports, first-year operating reports, and recurring annual or quarterly disclosures appropriate to the metric.
- Require independent checks. Have the utility and water provider validate capacity and upgrade costs; assign an auditor for employment and fiscal claims.
- Provide remedies. Include cure periods, repayment or clawback provisions, reduced benefits, capacity deposits, and successor obligations where legally available.
- Review publicly. Schedule periodic reviews and make changes, missed targets, and corrective actions accessible to the public.
Maryland Executive Order 01.01.2026.16 also calls for local guidance on binding employment commitments, reporting, successor obligations, remedies, and periodic review. Its Section J explains why local diligence matters: “Local governments are often the first public bodies a developer approaches and bear a data center project’s most direct consequences.”
A practical evaluation workflow
- Collect the proposal packet. Obtain the tenant or end-user description, site plan, phase schedule, load letter, water-demand study, energy plan, incentive request, and construction budget.
- Normalize the numbers. Convert employment to clearly labeled people, full-time-equivalent positions, or job-years; convert electricity to peak MW and annual MWh; and separate water withdrawal from consumption.
- Build the fiscal model. Estimate taxes, subtract incentives and public costs, and run delay, lower-occupancy, and higher-infrastructure-cost scenarios.
- Validate with providers. Ask the electric and water utilities to confirm capacity, upgrade timing, cost allocation, and effects on existing users.
- Score certainty. Mark each item as observed, contracted, forecast, or unverified. Give no credit for a benefit that lacks a definition or evidence path.
- Negotiate conditions. Convert material benefits and resource protections into measurable, time-bound, public commitments with remedies.
- Reconcile results after opening. Compare payroll, tax receipts, meter data, and water records with the approved baseline and publish variances.
Common comparison errors and fixes
- Combining temporary and permanent jobs: show separate categories and durations.
- Calling gross taxes a return: subtract exemptions, services, infrastructure, and ratepayer costs.
- Treating a forecast as a result: label the horizon, assumptions, source, and uncertainty, then update with measured data.
- Using a statewide example as a local benchmark: Washington’s jobs and electricity figures are specific to its program, beneficiaries, utilities, and reporting limits.
- Ignoring unverified data: require records, independent review, and a correction or remedy process.
- Scoring the whole campus at once: assign benefits, demand, and obligations to each phase and identify what happens if a phase is canceled.
- Counting water only as withdrawals: report consumption, source, discharge, seasonal peaks, and drought constraints.
- Leaving the payer unclear: name the developer, utility, government, or existing customers responsible for every upgrade and recurring service cost.
What a defensible decision looks like
A defensible approval or rejection does not depend on one headline number. It shows, for the same years and definitions, how many verified local jobs persist after construction, how much net public revenue remains after every incentive and public cost, and what electricity and water demand the community must supply. It also states which figures are still forecasts, who will verify them, when the public will see actual results, and what happens when commitments are missed.
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