Local Resistance Challenges U.S. Tech Infrastructure Expansion Plans

<p>A national security initiative aimed at expanding the infrastructure for America's technological ambitions is facing opposition from communities designated to host it, creating a conflict between Washington's efforts to maintain an edge over China and local resistance.</p><p>Representative Suhas Subramanyam, a Democrat from Virginia, who represents the area known as "Data Center Alley," cautions that this backlash could hinder the expansion deemed a national priority unless Congress intervenes. He argues that community support is essential for the continuation of these projects.</p><p>"The communities are being steamrolled by the industry," Subramanyam stated in an interview. "They’re not feeling like anyone’s listening to them."</p><p>Subramanyam is advocating for a four-part federal plan designed to address what he perceives as a false dichotomy between unregulated development and total moratoriums. The proposal focuses on site selection, power costs, energy and water measurement, and security for both the facilities and the surrounding communities.</p><p>Subramanyam emphasized, "If you are concerned about a race with China regarding the construction of data centers and AI, you should want to collaborate on a plan to gain community support for where to build these centers."</p><p>His Fair Share Act aims to compel states to require large power consumers to contribute more towards the infrastructure costs necessary to support them.</p><p>He suggested that if the federal government were to threaten the withdrawal of federal funding for non-compliance, it would incentivize cooperation. He believes data centers should "pay their fair share for the infrastructure that needs to be built because of them."</p><p>Concerns about noise and encroachment from a significant data center located near a cul-de-sac in Ashburn have recently resurfaced, according to reports. Subramanyam noted that while many residents recognize the need for infrastructure, they are concerned about how the costs and burdens are distributed.</p><p>Loudoun County has reported that revenue from data centers has enabled it to reduce its real property tax rate from $1.145 per $100 of assessed value in 2016 to $0.805 in 2026, as stated by the county.</p><p>However, Subramanyam argues that residents must consider these benefits against potential costs that may manifest in other areas, particularly on utility bills. He stated, "What's not acceptable is feeling like they come in, increase utility costs, and we pay for their power infrastructure," while also highlighting concerns regarding water quality, air quality, and other community issues.</p><p>The industry contests the claim that data centers are responsible for rising residential power bills. The Data Center Coalition, based in Leesburg, referenced a recent analysis by energy consulting firm E3, which found no historical evidence indicating that data centers have increased residential electricity costs under current rate structures.</p><p>Subramanyam contends that infrastructure with national significance cannot continue to develop in an "ad hoc" manner under a fragmented system of state and local regulations.</p><p>Other components of the proposed plan would establish federal standards for site selection and measurement while developing protections against security threats, including attacks on critical infrastructure abroad.</p><p>Subramanyam remarked, "I know that localities handle zoning, and states manage energy policy and related matters, but Congress and the federal government need to become involved."</p><p>Concerns regarding these issues have also prompted state-level action. Governor Abigail Spanberger introduced a framework in September aimed at enhancing local control, shifting more infrastructure costs onto major power users, and establishing new standards for water use and grid reliability.</p><p>Spanberger stated, "In the years before I took office, data centers came to Virginia, and the commonwealth did not have a clear or coordinated plan to address their impacts on Virginians — on their electric bills, their water, their land, their air, or their quality of life."</p><p>Leaders from both political parties, including Spanberger and Texas Republican Governor Greg Abbott, have developed plans and emphasized the importance of addressing these issues from multiple angles.</p><p>In contrast, West Virginia has adopted a different strategy by creating a microgrid program intended to attract large projects. Critics have raised concerns about limitations on local government authority, while supporters have proposed potential property tax elimination.</p><p>Recently, stakeholders in Jefferson County discussed these issues with the state's data-economy liaison at a forum in Shepherdstown, where County Commissioner Cara Keys criticized the potential erosion of local control, while the liaison assured that project approvals would be managed carefully.</p><p>"Two things can be true: You can support data centers, and you can be against the guardrails lacking in [the law]," Keys stated.</p><p>Subramanyam believes that the differing approaches on either side of the Blue Ridge Mountains highlight the need for Washington to address the patchwork of regulations before local opposition intensifies.</p><p>"The only plan I've seen is either to do nothing or impose a full moratorium," he said. "And to me, neither of those is a viable option moving forward."</p>