US President Donald Trump has proposed that companies building data centres pay a “dividend” to the communities hosting them, arguing that direct financial benefits could help overcome growing opposition to AI infrastructure projects.
Local concerns include high electricity and water consumption, environmental impact and rising utility bills as investment in data centres accelerates.
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Trump Calls For Local Benefits
Trump said projects facing public opposition could become “extremely popular” if developers addressed community concerns. He has also called on data centres to generate their own electricity and supply excess power to local communities or the grid to help reduce energy costs.
Opposition Grows Despite Record Investment
At least 47 large-scale data centre projects were delayed in 2026, while more than 1,000 US communities proposed or sought moratoria, zoning restrictions or tighter environmental rules, according to Investing Live. Nevertheless, US AI infrastructure spending is projected to exceed $10 trillion between 2025 and 2032.
Community Agreements Shape Development
In Texas, Meta’s planned data centre campus in El Paso grew from a $1.5 billion investment announced in 2023 into a $14 billion project, prompting public opposition. Governor Greg Abbott negotiated proposed safeguards requiring Meta to cover electrical infrastructure costs and reuse its water. Critics, including Democratic gubernatorial nominee Gina Hinojosa, argued that the agreement lacked binding conditions. More information is available from Meta.
In September, Lancaster City Council in Pennsylvania signed what it described as the first fully executed Community Benefits Agreement (CBA) for a US data centre project. The agreement for the $6 billion to $10 billion Lancaster AI Hub includes funds for economic development, clean energy and planning, as well as credit protection for the city.
Digital Realty has taken another approach in De Soto, Kansas, offering residents $1,000 in annual utility and property tax credits for 10 years as part of a proposed $20 million investment in a new data centre campus. The company says the project will create jobs and generate tax revenue. More information is available from Digital Realty.
Europe Explores Community Benefits
The approach is also gaining ground in Europe. OpenAI has said future data centres could include financial contributions to communities in Ireland, where data centres must also meet requirements related to supplying electricity to the grid. More information is available from OpenAI.
In Germany, developers are subject to requirements linked to energy use. In Dietzenbach, where Google is developing a multi-billion-euro campus, infrastructure agreements require excess heat from data centres to be fed back into the grid, helping reduce energy costs for residents. More information is available from Google.
As AI infrastructure expands, community payments, lower utility costs and environmental safeguards are becoming increasingly important to securing public support for new data centres.
