Local leaders in Tucson and Cedar Rapids share different approaches to one of the country’s fastest-growing development issues
WASHINGTON — As demand for Artificial Intelligence (AI) and cloud computing drives rapid data center development across the country, local governments are confronting complex decisions about water and energy use, infrastructure, economic development and community impact.
More than 3,000 data centers currently operate in the United States, and more than half of the world’s hyperscale or AI data centers are located here. NLC research has found that at least 120 communities have adopted moratoria on data centers and 60 have passed new zoning regulations this year.
In a new episode of the National League of Cities’ CitiesSpeak podcast, Kate Stoll, project director at the American Association for the Advancement of Science Center for Scientific Evidence in Public Issues; Tucson, Ariz. Councilmember Nikki Lee; and Cedar Rapids, Iowa Mayor Tiffany O’Donnell examine the choices communities face as data center proposals expand nationwide.
What Local Leaders Should Know
The Scale of a Project Matters
Data centers vary significantly in their demand for local resources. Stoll explains that a 100-megawatt hyperscale facility can use roughly as much electricity as 80,000 U.S. households, while a large facility’s peak water use can reach between one and eight million gallons per day. She recommends that communities evaluate energy, water, air quality, infrastructure costs, jobs and tax revenue before making development decisions.
NLC and the AAAS EPI Center developed the Key Questions to Ask When Considering a Data Center in Your Community resource to help local leaders evaluate these considerations and better understand the potential benefits and impacts of proposed projects.
“These are questions you could ask of data center developers to get a real handle on what will be the impacts of the data centers, what will be the positive benefits, what will be the drawbacks, with the ultimate goal of bringing more clarity and transparency for communities so that they can make informed decisions for their communities.” — Kate Stoll, Project Director, AAAS EPI Center
Tucson Chose Stronger Guardrails After Rejecting a Hyperscale Proposal
After significant community concern contributed to the city’s decision not to move forward with annexation for the proposed $3.6 billion Project Blue, Tucson spent nearly a year developing new regulations with input from a 13-member technical advisory committee and the public. Councilmember Lee says the process reinforced the importance of considering the full system of water, energy, infrastructure and environmental impacts, and engaging residents early.
“You really have to look at the whole system and not just, for example, water. What does the water meter at the site say? We have to look at the whole picture on what resources are actually necessary to power and operate these facilities.” — Councilmember Nikki Lee, Tucson, Ariz.
Cedar Rapids Has Taken a Different Path
The city is welcoming two hyperscale facilities after years of planning and due diligence around infrastructure capacity. Mayor O’Donnell says development agreements are expected to generate significant property tax revenue and include investments in water, wastewater and other infrastructure, as well as community betterment funding.
“Ask for what you need, know what you need. Do your due diligence, good relationships and communicate with the public. The public has to know all that’s going on if you want the project to have any shot at being successful.” — Mayor Tiffany O’Donnell, Cedar Rapids, Iowa
The conversation underscores that there is no single approach to data center development for every community. Local leaders are weighing different economic opportunities, infrastructure capacities, environmental considerations and resident concerns as they determine what, and under what conditions, makes sense locally.
Listen to the full conversation, also available on Apple Podcasts, Spotify and YouTube.
About CitiesSpeak
Each episode of NLC’s podcast, CitiesSpeak with Clarence Anthony, dives into a critical issue facing local leaders today, featuring conversations with elected leaders and policy experts from across the country. The podcast is a relaxed and entertaining resource for local policymakers looking for ideas and information to bring back to their communities. The podcast is hosted by NLC CEO and Executive Director Clarence Anthony, who previously served as mayor of South Bay, Florida, for more than two decades.
New episodes of CitiesSpeak are available on all major podcasting platforms and on YouTube. If you have feedback for the show or ideas for future guests, email us. Happy listening!
