Not All Data Centers Are Created Equal: Questions To Help Your Community Find the Right Fit
Chances are, a lot of what you’ve read about data centers comes from headlines about the biggest players and the resource use that comes with their facility footprint. These stories are worth paying attention to, but many don’t realize data centers come in a variety of sizes. While massive hyperscale campuses make sense for powering the AI boom, many communities are better suited to smaller, local data centers with a very different footprint, without compromising the benefits of digital infrastructure. What often gets lost between the headlines and the project proposal is nuance. Many communities aren’t given a clear picture of what is actually being proposed in their area. We have developed a guide to questions worth asking to understand what’s on the table and what it would ultimately mean for your community. With the right questions, you’ll be equipped to determine whether what’s being proposed in your area is the right fit and advocate for your community accordingly.
General Data Centers
What are data centers?
A data center is a building full of computer servers that store data, process information, run websites and apps, and power online services people use every day like email, streaming video, online banking, healthcare, emergency services, smart devices, and AI products.
When people talk about “the cloud,” what they really mean are data centers. Photos, files, and documents backed up “in the cloud” are actually stored in data center buildings like this. They’re not up in the sky - they are in a data center facility, and that’s what lets people access their content instantly and even keep information safe.
Are there different sizes of data centers?
Yes, data centers range in scale, and the differences matter for understanding their impact.
Small facilities might occupy a single room or small building (like a Starbucks) and typically serve one company or even one small community.
Large-scale data centers – called hyperscale data centers – are massive campuses built by companies like Meta, Amazon, Google, and Microsoft to run cloud computing and AI services for millions of users at once. Hyperscale data centers are what we hear about most often in the news, as they can consume as much electricity as a mid-size city.
Mid-size data centers are roughly the size of a large warehouse or distribution center. A single company usually builds these to run its own operations or serve a regional customer base.
Size matters because as data centers scale, so do power demand, water use for cooling, construction and environmental impacts, land use, and the number of permanent jobs created. So, when you hear “a data center is coming” – the first useful question to ask is always “what size and category of data center does it fall into?” because understanding the size of the data center shapes the questions that follow.
Why do we need data centers? I am hearing about huge construction projects all over the US.
Data centers are the physical infrastructure that has quietly powered everyday life for decades. They make modern life run smoothly: instant access to information, services, and connections anytime.
Essential services like hospitals use data centers for electronic medical records and telehealth. Emergency response systems rely on data centers to provide services like 911 dispatch and public safety notifications. Schools and workplaces rely on them for remote learning and work, plus cloud-based collaboration tools (email, messaging apps, file creation, sharing, and collaboration).
Data centers support economic activity: Businesses rely on data centers for payment processing, inventory management, website hosting, customer records, and more.
By the 2010s, smartphones meant a computer in every pocket, and that’s when the reliance on data centers became nonstop. GPS and mapping, social media, ride-sharing apps, mobile banking, work collaboration tools, and more all run on data centers working behind the scenes to deliver these applications and services.
Data centers have gained national attention as AI tools and applications grow in popularity. As more individuals and companies integrate AI into their work and everyday life, demand for the computing power needed to support these tools and applications has increased.
Who decides if a data center will be approved in my community?
Data center approvals vary based on the proposed data center's size.
For smaller facilities: local elected officials such as the mayor, city council, or county board of supervisors typically drive the approval process. For smaller facilities that fit within existing zoning requirements, approval may happen quickly, depending on local rules.
Larger projects or projects requiring rezoning tend to go before elected state and local officials and regulatory bodies for a formal vote and are preceded by a series of public hearings.
My community may be getting a new data center. What questions should I ask to understand the type of data center and the impact on my community?
The following questions will help you understand if a new data center is appropriate and right-sized for your community:
Size and Scale
Why this matters: a smaller local data center and a hyperscale data center have different impacts on land, power and daily life. Knowing the size and scale will help you evaluate the impacts to the community.
How large will this facility be in square footage, number of buildings, and height?
How does this compare to other data centers already in the region? Is it small, mid-size, or hyperscale?
Is this a single facility or the first phase of a larger campus?
Power and Energy Usage
Why this matters: large facilities can use as much electricity as a small city on a daily basis. Understanding the scope of the energy demands will help clarify grid reliability and rates for existing customers in the community.
How much electricity will the facility need, and how does that compare with the power needs of the broader community?
Will the data center strain the local power grid, or has the utility built the infrastructure to accommodate this new use?
Will the data center impact energy rates for residents and businesses?
Where will the power come from? (Existing resources or will it require new infrastructure?)
Will the facility use renewables, and if so, how much and where will those be placed?
What kind of insurance will the local permitting authorities require to ensure local residents are held harmless in the event of an accident or sudden departure or failure of the data center owner or operator?
Cooling and Water Usage
Why this matters: Large-scale projects use significant amounts of water to keep data centers cool and prevent overheating. Water concerns are often heightened in communities with limited water supply or drought conditions.
How will the data center be cooled? (With air or water?)
If water is used to cool the data center, where will it come from, and how often must it be replenished?
If water is used, will it reduce the water supply/water quality and/or impact water bills?
What longer-term impacts will that amount of water use lead to?
What will happen to wastewater and heat from the data center?
Noise and Construction
Why this matters: Construction is a temporary noise concern, but day-to-day operational noise from powering and cooling large-scale data centers is a long-term factor that can affect nearby residents.
Is the data center using an existing building or is this new construction?
How long will construction take, and what is the road use, traffic, and noise expected to be during that phase?
Once operational, what noise will the data center generate daily? How far does that noise travel? Are there measures in place to buffer the sound?
Can you give an example of the expected noise levels based on the size of the data center?
What noise-level variances will the equipment be held to?
Land Use
Why this matters: once land is developed for a data center, it is generally challenging to convert the land back. Understanding the gains (access to digital services, economic benefits, and more) and tradeoffs (less open land or farmland) can help determine if the data center is appropriate for the area.
What land is being used and how much is required?
What was the land used for previously? (Farming, industrial, open space?)
Could this land have supported other community priorities like housing, agriculture, or conservation?
How will the facility affect local ecosystems and agricultural viability in surrounding areas?
Who will approve the re-zoning of the land if that is required, and how will local residents be notified and kept informed on the process and progress?
Is there a plan for the land if the facility is decommissioned in the future?
How and when does the community offer its views?
Long-Term Community Benefit
Why this matters: construction jobs often receive positive responses in the short term. The real value to a community comes from permanent jobs, education, ongoing tax revenue, and other long-term measures of economic growth.
Beyond initial construction, what ongoing jobs will the data center create? How many ongoing jobs are expected?
What tax revenue will the data center generate and over what timeframe?
Are there tax incentives being offered to the company, and if so, what does the community gain in return?
What are the other community benefits planned with this project?
Other Important Questions
Why this matters: these questions will help you understand who is involved in the project, what oversight exists, and what is anticipated to happen down the road.
Who is the company building and operating the data center? What is their track record in other communities?
What will be the uses of the data center (who will use it and for what purposes)?
What environmental reviews are required, and will the public be able to comment?
What requirements are imposed on the data center owner for land and habitat restoration?
How many public forums will be conducted for residents to ask questions as the project advances?
If multiple data centers are proposed for the same region, are grid strain, water use, and land use evaluated together or on a project-by-project basis?
Cumulative impacts on traffic, emissions, noise, water, power, etc.
Not every community needs a large data center campus to benefit from digital infrastructure, but every community deserves the same access to digital services. That’s exactly what Greensparc is here for: modular infrastructure, right-sized to fit your community, and powered by stranded energy sitting nearby that would otherwise go unused. We believe local data center decisions shouldn’t take place without you. Before anything is built, you deserve to understand what is being proposed, what questions to ask, and whether it is a good fit for where you live.