The era of easy data center approvals is over. Across the country, massive billion-dollar hyperscaler projects are facing unprecedented local opposition. The party of big announcements and giant ribbon cuttings was fun, but communities are waking up with a "hyperscaler hangover" and asking hard questions about what exactly they agreed to.
In this episode of Site Selectors Are People, Too, host Devin Hillsdon-Smith breaks down why the tide has turned on data center developments and how economic development organizations (EDOs) have been making the case for them all wrong. We dive into the four major concerns driving community pushback—water usage, noise, tax breaks, and jobs—and why developers can no longer rely on secrecy, code names, and vague promises to get deals done.
Key topics in this episode include:
The Big Disconnect: Why data centers are tax base projects, not job creators, and why overselling them as "job projects" destroys community trust.
The Real Community Concerns: The difference between evaporative and closed-loop cooling, the reality of constant low-frequency noise, and the true cost of state tax exemptions.
The Ratepayer Nightmare: How utility tariffs, minimum demand charges, and exit fees can protect local residents if a massive data center campus shows up half-empty.
The "Honest Data Center Readiness Sheet": A crucial one-page checklist every economic developer needs to fill out before stepping up to the microphone at a public zoning hearing.
The Nerd Section: Devin pulls out the calculator to explain the "but-for haircut" on state incentives and how to calculate a project's true net local fiscal impact.
Whether you're an economic developer, a site selector, or a community member trying to understand the sudden boom of data centers in your county, this episode is your guide to navigating the new reality of hyperscale development. Sometimes, the best way to get a good deal passed is knowing when to walk away from a bad one.