Questions localities should ask
Key Areas Local Governments Should Explore When Evaluating Data Center Proposals
As data center development continues to accelerate, local governments must be equipped to assess proposals through a lens of infrastructure readiness, environmental responsibility, community alignment, and long-term benefit. The following areas are essential for a thoughtful and informed review process:
Understanding Data Center Function and Demand Drivers
Localities should gain a clear understanding of the facility’s intended purpose, size, operational footprint, and long-term growth projections.
It’s also critical to determine the type of data center being proposed—hyperscale, colocation, edge, or on-premises. Each type has distinct infrastructure requirements:
Hyperscale facilities require significant land and utility access.
Colocation centers may involve multi-tenant operations and higher density.
Edge data centers are typically smaller but closer to end users.
On-premises centers serve single organizations and are often embedded in campuses.
RVA757 Connects and the Data Center Coalition made a presentation before the Ashland Town Council in March 2024 about digital infrastructure including data centers.
Understanding these distinctions helps ensure land use, zoning, and infrastructure are appropriately matched to the project’s demands.
Assessing Infrastructure Needs
Ask how much power, water, road access, fiber connectivity, and transmission capacity the proposed data center project will require.
Data centers are energy-intensive, often consuming 30–100+ megawatts (MW)—enough to power tens of thousands of homes. Localities should assess:
Whether existing substations and grid infrastructure can accommodate this demand.
Whether upgrades to transmission lines or substations are necessary, and who will bear those costs.
Opportunities to integrate renewable energy sources into the project or grid.
Water usage is another key consideration. In particular:
Understand the source of water (potable vs. recycled).
Assess potential strain on local water supplies.
Encourage or require use of nonpotable or reclaimed water, especially for cooling systems.
Ask how water usage will be monitored and managed over time.
Evaluating Environmental and Sustainability Practices
Ask developers to clearly outline sustainability strategies related to:
Cooling systems (air-cooled vs. water-cooled)
Energy efficiency standards (LEED or other green certifications)
Integration of renewable energy
Low-emission backup power generators
Noise mitigation and environmental monitoring
Stormwater management and site runoff controls
Heat reuse or energy recovery systems
These practices can reduce community impact, improve public perception, and support regional climate goals.
Reviewing Land Use and Zoning Strategy
Ensure the project fits within local land use and comprehensive plans. Localities should ask:
Does the proposed site have access to utilities and infrastructure corridors?
Is the project compatible with existing zoning? If not, does it require a rezoning or conditional use permit?
Would a data center–specific zoning overlay or a Planned Innovation, Research, and Technology one be more appropriate?
Encourage:
Thoughtful site selection that considers proximity to homes, schools, or sensitive land uses.
Design guidelines for noise, visual impact, and architectural style, such as setbacks, landscaping, façade treatments, and screening.
Clear standards for ongoing operational compliance, including sound, emissions, water use, and emergency systems.
Planning for Public Outreach and Transparency
Developers should be expected to:
Engage early and proactively with residents and stakeholders.
Host public meetings or open houses.
Provide clear, accessible project information and visuals.
Commit to ongoing communications during construction and operations.
Establish a process for addressing community feedback and concerns.
Transparency builds trust and can reduce friction during the approval process.
Considering Long-Term and Community Impact
Ask about the employment profile of the project:
How many construction jobs will be created, and over what timeframe?
What is the expected number of permanent employees once operational?
Are there local hiring or workforce development goals?
Explore community benefit opportunities, such as:
STEM education partnerships
Job training programs
Support for local nonprofits or infrastructure improvements
Broadband expansion efforts
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