#727 A Data Center in Every Community with Christopher Jordan, National League of Cities

Today's municipalities are confronting a new kind of infrastructure: hyperscale AI data centers. Defined as facilities drawing 100 megawatts or more, these campuses power large‑language‑model training and 24/7 inference services that underpin cloud applications, video generation, and autonomous systems. The rush to build them mirrors a modern space race, with tech giants racing to secure U.S. soil for national‑security and competitive reasons. For local leaders, the conversation is no longer theoretical; the sheer scale of power demand and the speed of siting decisions are reshaping land‑use planning across the country.

Proponents tout substantial fiscal upside: property‑tax abatements in places like Loudoun County, Virginia, have helped lower resident tax burdens by roughly 25 percent while attracting dozens of facilities. Construction spikes generate short‑term jobs, yet permanent staffing remains low—often one employee per 5,000 to 10,000 square feet. The trade‑off lies in resource intensity. Nationwide data centers already account for about 4 percent of electricity use, a share projected to climb to 8‑10 percent by 2030. Water consumption is equally stark; evaporative cooling can evaporate up to 80 percent of intake water, a concern amplified in drought‑prone Southwest markets such as Phoenix, Salt Lake City, and Reno.

Community resistance is rising where transparency falters. In Tucson and Indianapolis, leaked non‑disclosure agreements sparked protests that forced developers to pause or abandon projects. Residents cite soaring utility bills—some seeing 200 percent spikes—and water‑use anxieties, especially in arid counties. Local governments therefore need clear permitting frameworks, public‑utility coordination, and robust environmental impact assessments. The National League of Cities’ AI and Innovation program is already guiding municipalities on best practices, from disclosure policies to climate‑smart cooling technologies. By balancing economic incentives with sustainable resource management, cities can decide whether a data center becomes a catalyst for growth or a source of contention.