The $170 billion lesson data center developers keep learning the hard way

Maura Healey, the governor of Massachusetts, recently laid down a new rule on the contentious question of whether to build data centers in her state: “Unless a community says yes to a data center, we are saying no.” Pennsylvania’s governor, Josh Shapiro, took it a step further, requiring developers to “[c]ommit to open, transparent engagement with local residents and leaders . . . early enough in the process to allow meaningful public input on major design decisions.” But what does it mean for a community to say yes? Is “yes” a vote at a town meeting? A zoning approval? Who speaks for the community? When Texas compels developers to account for water use, electricity costs, noise, traffic, and other neighborhood impacts before connecting to the grid, how should residents help shape those choices? And when Massachusetts requires a community benefits agreement—a negotiated deal over what a developer will give back to the community—how does a town know what it can ask for? Governors of both parties are competing aggressively for data center investment and jobs. But at a time when Americans are more likely to oppose an AI data center in their area than a nuclear power plant, building t…