New Data Centers Report Provides Guidance on Navigating AI Boom and Community Impact

The massive infrastructure boom spurred by an increasing reliance on AI and demand for data centers often compels policymakers to make development decisions quickly, despite significant impacts on natural resources and community well-being. The Lincoln Institute of Land Policy’s new Findings Report, Developing a Data Center Policy: A Guide for Communities Navigating AI and Digital Infrastructure, explores data center impacts on land and water, shares a framework for identifying community priorities before negotiations with data companies begin, and describes ordinances and risk instruments that can help communities protect their interests—and derive benefits for their residents—when they decide to allow data center development. 

“Data centers will continue to be something communities grapple with across the country for years to come, and every community should be prepared to address the many questions that come along with data center development,” said John Farner, executive director of Land and Water at the Lincoln Institute. “This report provides a comprehensive overview of the many considerations, options, risks, and benefits that policymakers should be aware of, and provides recommendations for how to embark on a process that is informed by and inclusive of land and water impacts and community needs.” 

The report covers several key topics, including community engagement; data center impacts and siting considerations; ordinances, agreements, and legal authority; community benefit agreements; and risk mitigation. 

As part of the report, the Lincoln Institute also published several supporting resources, including examples of zoning ordinances designed to address data center development, risk instrument templates intended to help municipalities organize information and facilitate discussions related to development risk, and examples of community benefit agreement terms. All three resources are intended to provide communities with tangible tools to navigate the process of preparing for potential data center development. 

Read the full report on the Lincoln Institute’s website. 

Kristina McGeehan is the director of communications at the Lincoln Institute of Land Policy.

Lead image: Aerial view of a data center in Newark, California. Credit: JasonDoiy via iStock/Getty Images Plus