New York has imposed the country’s first statewide moratorium on new large-scale data center construction. It might not be the last. Bills to freeze or restrict data center development have surfaced in statehouses from Maine to Georgia. Communities feel taken advantage of, and they’re pushing back. Frankly, some of that skepticism has been earned.
Communities didn’t become skeptical overnight. In some cases, developers treated public engagement as a box to check rather than a commitment to keep, and that’s exactly why higher standards matter now. None of this is new to us. We’ve built data centers for 15 years with one guiding principle: build like you intend to live next door, not like you’re clearing a permit. That doesn’t change because scrutiny has intensified. If anything, it’s why we welcome it.
Banning data centers does not solve the real issue. Imagine life without the internet. Your mortgage payment doesn’t clear because electronic payments aren’t possible. The ER can’t pull up your child’s allergy history because the record lives on a server that no longer exists. The 911 call doesn’t connect. And the miracle drug AI could have discovered never gets made or saves anyone. Data centers power banking, hospital records, emergency communications, cloud services, AI and more. Opting out entirely isn’t a realistic option.
The question is not whether data centers will be built. It’s who communities can trust to build them.
Trust must be earned well before construction starts. It is built through transparency, regular communication, and commitments residents can see and measure over time. Communities should expect more than promises. They should expect developers to pay for the substations and transmission infrastructure their project requires rather than passing those costs to ratepayers, to be transparent about water use and to remain accountable long after construction ends.
Blanket moratoriums don’t build trust – they prevent the conversations needed to earn it. Communities need a higher standard for how projects are proposed, approved, built, and operated. They need developers who treat public engagement as part of the work, not a hurdle to clear, and who can show how a project will create shared value for the community hosting it.
Not all data center developers are the same, and those differences make all the difference. It’s the same as buying a house to flip it or buying one to live in for years. Every decision changes when you expect to live with the outcome: the corners you refuse to cut, the utility costs you will not shift to neighbors, and the promises you keep after the construction crews leave.
That is the standard the industry should be judged against: whether a developer communicates honestly, pays its share, minimizes impacts, and leaves the community stronger because it stayed, not just passed through.
In commercial real estate, “Class A” describes the building: well-constructed, well-located, professionally operated. For data center development, that standard should also include how a project improves the community. Does the developer pay for the substations and transmission lines its campus requires, or send that bill to neighbors? Does it use too much water? Is it too noisy? Are the setbacks appropriate? Does it keep residents informed when construction affects daily life? Is it still answering the phone a decade from now?
When mayors, governors or the President push for tougher standards, my response is the same: Good. Raise them. Ask for more on water, energy, infrastructure upgrades, community investments and accountability. Just measure every developer with the same yardstick.
Every data center developer that comes to town should sit for the same interview: five questions, drawn from the same standard we hold ourselves to. Do that, and communities get the investment, the jobs, the tax base and the community improvements that can change lives. If a developer can’t – or won’t – answer them, that is an answer too.
- Who pays for the grid and transmission upgrades this project needs, and where does its water come from?
- Will this developer own and operate the project for decades, or sell it when the approvals clear?
- Are the developer’s commitments binding, and who’s accountable for construction disruption – or do the promises disappear after the vote?
- What local workforce, community and economic benefits will actually show up, and when?
- Has this developer built and run projects like this before, and can you call the communities where it already operates to check?
Growing America’s digital economy will depend on whether the companies building data centers can earn trust before construction starts, maintain it while projects are being built, and prove over time that host communities share in the value these projects create.
That also requires communities to distinguish between developers based on the real commitments they’re willing to make. Ask the tough questions. Demand proof. Measure every developer by how it builds, what it pays for, how it communicates, and what it honors over time.
Communities should not be asked to trust developers because they promise to be good neighbors. Developers must earn that trust by actions that are true to their word: being transparent, showing up consistently, and creating value that lasts decades beyond the construction phase.
The question isn’t whether America will build data centers. It’s who communities will trust to build them.
Hold every developer to that standard. Including us.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
Chris Crosby is the CEO of Compass Datacenters, he has held this position since 2011 as an early expert in the datacenter industry.