How community engagement can green-light a data center proposal
At a glance
- Data center growth continues to surge, and this is playing a significant role in the rise in energy demand.
- Communities concerned about rising energy bills, water use, and more, are opposing data centers coming to their towns.
- Early, transparent engagement can help rebuild trust, creating a better relationship between developers and residents.
- Residential energy efficiency solutions could offset the impact from data centers on costs and the grid.
Resistance to data centers is intensifying. In Q2 of 2025 alone, residents and activist groups in the U.S. blocked or delayed 20 data center projects, worth an estimated $98 billion. The reason? Communities are no longer sold on the promises developers are selling.
An exponential rise in generative AI computing, coupled with accelerating digitization and cloud storage needs, is amplifying demand for data centers. In fact, the number of facilities built for such massive workloads has doubled over the past five years, with over half those located in the U.S. And the race to keep pace continues – companies are expected to invest $6.7 trillion globally by 2030.
But as total electricity use is forecast to rise by 32% over the same time frame – with data centers accounting for about 55% of this energy demand – public perception is a growing concern. Local residents presented with a surge of articles linking higher energy costs to the data center bid coming to their town are putting up protest signs not welcome signs.
Why locals block data centers
Data centers require large, continuous electricity loads, which residents worry will ultimately show up on their monthly utility bills. But concerns extend beyond this impact.
This January, a $12 billion data center project in DeForest, Wisconsin, was deemed "not feasible" and blocked due to resident opposition. Concerns were flagged over energy and water use, but the “no” vote appears to have followed a breakdown of trust between local officials and residents when it was revealed that discussions with developers had been ongoing for months before the project was disclosed to the community. Residents have accused leaders of misleading them about the timeline of negotiations, fueling frustrations over transparency.
In fact, the rapid expansion of data centers in Wisconsin has been clouded by nondisclosure agreements and “behind-the-scenes” planning, leading to significant trust issues between residents and local government.
More and more frequently, developers are seeing their new data center proposals derailed due to local opposition not only to anticipated energy costs but also fears over water usage, power strain, excessive noise, and negative impacts on air quality, water resources, wildlife, and property values. These are concerns hyperscalers must address with communities before new development even reaches the pre-permitting stage.
Community engagement makes the difference
With targeted outreach strategies, early and intelligent community partnership, data centers can contribute meaningfully to local communities, proving they can be good neighbors. But residents have legitimate questions that need to be addressed, or projects will never break ground. So, what should effective community outreach look like?
Engage early: Early community engagement is a critical foundation for smoother approvals. Begin outreach well before the approval process even begins, to proactively address common concerns that could slow or even derail projects.
Show transparency: Many jurisdictions now expect developers to hold public meetings or informal briefings prior to formal permitting. Use these conversations to build relationships, align expectations, and show responsiveness to community needs. This fosters a collaborative environment where communities feel heard and included from the outset.
Communicate positive impact: This is an opportunity to educate on how, combined with local investment, data centers can improve public infrastructure, expand high‑capacity fiber networks, and enable better connectivity for businesses, schools, and homes.
Use community benefits agreements: CBAs assuage residents’ fears and “de-risk” projects by putting in writing, for example, commitments to local job hiring, noise mitigation strategies, water usage, visual impact, contributions to local funds, and mechanisms for monitoring compliance and ensuring transparency and oversight.
Ongoing dialogue is essential: Developers should maintain feedback channels in the longer term – with advisory boards or town halls – to hear residents’ concerns throughout a data center’s life. Open houses where community members meet project leaders can help show both operators’ and residents’ commitment to being good neighbors.
How energy efficiency could seal the deal
Through engagement and investment in communities, we have an opportunity for real partnership. But this is just the beginning. The demand for data centers is undeniable, but so too is the impact this has on electricity prices and a strained grid. At CLEAResult, we are invested in using our decades of utility grade energy efficiency expertise to provide customized solutions to such energy challenges.
In the next blog in our Data Center series, we explore how the energy efficiency upgrades our experts deliver every day could hold the key to offsetting potential data center loads, reducing grid strain, substation upgrades, and giving residents more control over their home comfort while reducing their energy bills.