By Lina Irawan 
New York has imposed the country’s first statewide moratorium on new large-scale data center construction, a bold move that signals a growing tension between technological advancement and community concerns. This groundbreaking decision might not be the last, as similar legislative efforts to freeze or restrict data center development have surfaced in statehouses from Maine to Georgia, reflecting a broader national sentiment. Communities across the United States are increasingly vocal, expressing a sense of being taken advantage of, and they are pushing back with unprecedented vigor. Frankly, some of that skepticism has been hard-earned, born from experiences that have left residents feeling unheard and overlooked.
The skepticism communities now harbor didn’t emerge overnight; it’s the culmination of years of interactions, or often, the lack thereof. In far too many instances, developers have treated public engagement not as a genuine commitment to foster shared value, but merely as a regulatory box to check on the path to project approval. This transactional approach has eroded trust, making the call for higher standards not just desirable, but absolutely essential for the industry’s future. For companies like Compass Datacenters, with a 15-year track record in this evolving sector, this level of scrutiny is not new. Our guiding principle has always been to build as if we intend to live next door, deeply integrating with the community rather than just clearing a permit. This philosophy doesn’t waver as scrutiny intensifies; if anything, it’s precisely why we embrace it, seeing it as an opportunity to elevate the entire industry.
However, the solution to these legitimate concerns is not to impose blanket bans on data centers. Imagine a world without the internet, a thought experiment that quickly reveals the indispensable role these facilities play in our daily lives. Your mortgage payment wouldn’t clear because electronic payments would be impossible. An emergency room couldn’t pull up your child’s critical allergy history because the medical record, stored on a server, would be inaccessible. A 911 call might not connect. The miracle drug that artificial intelligence could have discovered would never be made, nor would it save anyone. Data centers are the invisible infrastructure powering banking, hospital records, emergency communications, cloud services, the burgeoning field of AI, and countless other critical functions that underpin modern society. Opting out entirely, therefore, isn’t a realistic option; it would plunge us back into an analog age with devastating economic and social consequences. The global digital economy, projected to grow exponentially with the advent of AI, IoT, and ever-increasing data consumption, simply cannot function without a robust and expanding data center infrastructure.
The fundamental question, then, is not whether data centers will be built, but rather who communities can genuinely trust to build them. This distinction is crucial, shifting the conversation from a reactive "stop everything" stance to a proactive "demand more" approach. Trust must be earned long before the first shovel breaks ground. It is cultivated through unwavering transparency, consistent and regular communication, and concrete commitments that residents can see, measure, and hold developers accountable for over time. Communities deserve and should expect more than just vague promises. They should demand that developers bear the full cost of the substations and transmission infrastructure their projects require, rather than offloading these significant expenses onto local ratepayers. Transparency regarding water usage, energy consumption, and noise levels should be non-negotiable, and developers must remain accountable for their environmental and community impacts long after construction crews have departed.
Blanket moratoriums, while stemming from valid frustrations, ultimately do not build trust. Instead, they prevent the very conversations and collaborations needed to earn it. What communities truly need is a higher standard for how data center projects are proposed, approved, built, and operated. They require developers who view public engagement not as an inconvenient hurdle to clear, but as an integral and continuous part of the development process. These developers must be able to clearly demonstrate how their project will create tangible, shared value for the host community, extending beyond temporary construction jobs or initial tax incentives.
Not all data center developers are created equal, and these differences make all the difference in a project’s long-term impact. It’s akin to the stark contrast between buying a house to quickly flip it for profit versus purchasing one with the intention of living in it for decades. Every decision changes when you expect to live with the outcome. This perspective dictates the corners you refuse to cut, the utility costs you will not shift to your neighbors, and the promises you rigorously keep long after the construction crews have left. A responsible developer invests in the community’s future, not just their immediate profit margin.
That is the standard against which the entire industry should be judged: whether a developer communicates honestly, pays its fair share, actively minimizes environmental and social impacts, and ultimately leaves the community stronger because it committed to staying, not just passed through. This paradigm shift requires a redefinition of what constitutes "Class A" development in the data center sector. In commercial real estate, "Class A" typically describes the building itself: well-constructed, prime location, professionally operated. For data center development, that standard must also encompass how a project genuinely improves and integrates with the community. Does the developer fully fund the necessary substations and transmission lines, or does that bill fall to the neighbors? Is the facility’s water usage excessive, especially in drought-prone regions? Is noise pollution from cooling towers adequately mitigated? Are setbacks from residential areas appropriate and respected? Does the developer proactively keep residents informed when construction inevitably affects daily life? And critically, is the developer still answering the phone and addressing concerns a decade after commissioning?
When mayors, governors, or even the President call for tougher standards, the response from responsible industry leaders should be a resounding, "Good. Raise them." We should demand more on water conservation, energy efficiency, grid modernization, infrastructure upgrades, community investments, and long-term accountability. However, it is equally important that every developer is measured with the same rigorous yardstick. This creates a level playing field and incentivizes best practices across the board.
Every data center developer that comes to town should undergo the same comprehensive interview, consisting of five core questions drawn from the very standards we hold ourselves to. These questions should probe a developer’s commitment to:
- Transparent Resource Management: How will they minimize and report on energy and water consumption? What specific, measurable sustainability goals do they have?
- Infrastructure Investment: What specific infrastructure upgrades (power, roads, broadband) will the developer fully fund, ensuring no undue burden on local ratepayers?
- Community Engagement & Mitigation: What concrete plans are in place for ongoing, proactive community engagement? How will they address and mitigate potential impacts like noise, traffic, and visual aesthetics?
- Long-Term Accountability: What mechanisms will be in place to ensure the developer remains accountable for environmental, social, and economic commitments years, even decades, after construction?
- Economic & Social Value Creation: How will the project generate sustained local jobs (beyond construction), contribute meaningfully to the tax base, and invest in broader community benefit initiatives?
By asking these tough, specific questions and demanding verifiable proof, communities can secure the investment, the high-quality jobs, the enhanced tax base, and the genuine community improvements that can truly change lives. If a developer cannot—or worse, will not—answer these questions with transparent and actionable commitments, that itself is a definitive answer.
The future of America’s digital economy and its continued global competitiveness will depend critically on whether the companies building data centers can earn and maintain trust. This trust must be established well before construction starts, nurtured throughout the building phase, and definitively proven over time, demonstrating that host communities genuinely share in the immense value these projects create. This also necessitates that communities become adept at distinguishing between developers based on the real, verifiable commitments they are willing to make, rather than superficial promises. They must ask the tough questions, demand concrete proof, and rigorously measure every developer by how it builds, what it pays for, how it communicates, and what commitments it honors over time.
Communities should no longer be asked to simply trust developers based on assurances of being "good neighbors." Developers must actively earn that trust through consistent actions that are true to their word: being transparent in all dealings, showing up consistently and authentically in community dialogues, and creating lasting value that extends for decades beyond the initial construction phase.
Ultimately, the question isn’t whether America will continue to build data centers, but rather which developers communities will choose to trust with this vital responsibility. Hold every developer to that rigorous 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.
