Getting Localities Data Center Ready

Jun 25

Becoming data center ready does not mean recruiting or approving data centers at all costs. It means ensuring that a locality understands what digital infrastructure requires, plans proactively, and makes informed, community-aligned decisions when opportunities arise.

Data centers are capital-intensive, long-term investments that depend on a predictable operating environment. Localities that prepare in advance are better positioned to evaluate proposals, protect community interests, and capture economic benefits while managing impacts.

Being data center ready is about preparation, coordination, and informed governance. Localities that invest in understanding digital infrastructure, align policies, engage utilities and communities early, and connect projects to long-term economic goals are best positioned to make decisions that serve both residents and the digital economy.

Understand Digital Infrastructure Requirements

Local leaders and staff should develop a working understanding of what data centers need to operate successfully, including:

Reliable, scalable electric power
High-capacity fiber connectivity
Access to appropriate land and zoning
Adequate water and cooling options
Strong cybersecurity and physical security

This understanding allows localities to ask better questions, set realistic expectations, and engage productively with developers, utilities, and residents.

Align Zoning and Land-Use Policies

Data centers require specific site characteristics, including parcel size, setbacks, access to substations and fiber routes, and compatibility with surrounding uses. Localities can:

Review zoning ordinances to ensure data centers are clearly defined and appropriately sited
Establish performance standards (noise, setbacks, design, landscaping)
Identify preferred or industrial areas where digital infrastructure makes sense

Clear zoning reduces uncertainty for both communities and developers.

Coordinate Early with Utilities

Energy and fiber availability are often the most decisive factors in site selection. Localities can improve readiness by:

Maintaining regular coordination with electric and natural gas utilities
Understanding local and regional power capacity and upgrade timelines
Aligning comprehensive plans with utility infrastructure planning

Early coordination helps avoid overpromising and ensures growth aligns with realistic infrastructure capacity.

Prepare for Permitting and Review

Data center projects move on tight timelines. Localities that streamline permitting — without sacrificing standards — are more competitive. Best practices include:

Clear permitting pathways and timelines
Internal coordination among planning, zoning, utilities, and public works
Consistent expectations communicated to applicants upfront

Predictability, not speed alone, is what developers value most.

Address Community Impacts Transparently

Public trust is essential. Localities should be prepared to address common community questions about:

Energy and water use
Noise and visual impacts
Tax revenue and public benefits
Workforce and local business opportunities

Providing fact-based information and engaging residents early helps avoid misinformation and builds confidence in local decision-making.

Connect Data Centers to Broader Economic Goals

Data centers are part of a larger digital ecosystem. Localities that benefit most:

Align digital infrastructure with workforce development and education
Encourage partnerships with local colleges, training providers, and small businesses
Integrate data centers into broader economic development strategies, not as stand-alone projects

Track Performance and Plan for the Long Term

Data centers are long-lived assets. Localities should track outcomes such as: