OPINION: Data centers mean economic growth for city, county

Brian E. Davis

By Brian E. Davis

Data Centers are not going away. Period. Full stop! The key question is “what can we do to live in harmony with them that will provide both long-term and short-term benefits to our neighbors and community?”

Discussions need to be at the forefront and not couched in moratoriums to slow those discussions down and cause economic growth to once again stagnate.

High-performance data centers are not just a place to house digital infrastructure—they help businesses to interconnect with their digital supply chain of partners, service providers, and customers within a trusted and reliable environment.

Data centers are inevitable. The way they happen is not.

Data centers power modern life and bring investment and jobs. There need to be specific rules on energy procurement and equitable cost to all users, water use, land siting, and community engagement. All of this will determine the needs for the local economy and infrastructure and how both impact residents.

Many people speak about these without knowledge or with old information. That is the challenge and why they need to be called out.

When looking at new-build data center buildings, there is a need to provide up-to-date studies, information, and facts. Too often, outdated information is used by those who want to stop them.

We’ve seen this before. New technology in data center cooling uses closed-loop systems with existing geothermal technology or even liquid immersion, as reported by Accenture in January. Require building materials for sound abatement and the reclamation of any heat generated to help with power. There are also hybrid adiabatic systems, which use 90% less water. Barrier wall systems and acoustical penthouses can be used for sound deadening. And municipalities can require certain design and delivery methods to be approved and used to ensure these requirements are met. Zoning requirements for the permitting processes requiring projected decibel levels, noise mitigation plans and ongoing monitoring commitments can and should be established.

The amount of post-construction revenue from property taxes and, more importantly, licensing fees can generate yearly revenue for local government. Should any increase in electricity rates be requested by the utility companies, agreements, MOU’s and approvals for data centers can and should include language that specifically lays out that all of the associated costs will be paid for by the data center companies—not the everyday local user. This is already being done elsewhere.

States and utilities are exploring ways to ensure that data centers can come online without shifting costs to other ratepayers. Ohio introduced a new rate schedule requiring data centers to pay for at least 85% of the energy they are subscribed to, regardless of how much they actually use. Other states (Oregon, Minnesota, Missouri) required utilities to create new rates and billing for all large energy users so costs are paid for by those who use it rather than households and other businesses.

Data Centers are already reducing or eliminating water use for cooling with new technology. Still others use reclaimed water from other utilities and are not even tying into local supplies.

Require alternative power/energy sources for data centers, such as solar or wind, which also needs to happen in our county, eliminating diesel or standard electrical needs reducing or eliminating emissions. Using these alternative sources for power should be included when permitting and planning is done. This would include a disclosure of on-site power strategies and outlining how cleaner alternatives will be used during permitting review.

Local governments should require policies that treat data centers as a distinct land use. They can restrict development from prime farmland, including strengthened agricultural zoning and implementation while also requiring additional reviews to large-scale projects. This will allow local communities to establish performance standards related to buffering, traffic, noise, and long-term management.

I hope all of these are given thought and that Hutchinson and Reno County will not repeat past decisions resulting in stagnant growth.

Brian E. Davis is a retired International University Educational Entrepreneur who worked in Boston, London, and Rome. He is a Certified Human Rights Trainer. He also developed 3 residential buildings in Downtown Hutchinson. He can be reached at brianedavishutch@gmail.com or 620-931-6006.

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