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Data Centers & Communities: An Urgent Need to Develop Collaborative Outcomes

April 20, 2026

The Clinic has officially published its new report, Data Centers & Communities: An Urgent Need to Develop Collaborative Outcomes, by Kevin F. Hsu and Lawrence Susskind for the MIT Science Impact Collaborative.

This report examines the rapid expansion of data centers across the United States and the growing challenges communities face as AI infrastructure development accelerates. It explores how data centers are reshaping energy demand, straining local infrastructure, and raising concerns around environmental impacts, public subsidies, land use, and quality of life. The report also analyzes emerging state and local policy responses, including zoning reforms, transparency requirements, energy standards, and Community Benefit Agreements (CBAs).


Some key findings:


  • More than 2,700 new data center projects are planned or under construction across the U.S.

  • Communities are increasingly concerned about energy demand, water use, noise, traffic, and long-term public costs

  • State legislatures are exploring new regulatory strategies, including consultation requirements, energy efficiency standards, and CBAs

  • Collaborative planning and stakeholder engagement can reduce conflict and improve long-term project outcomes

  • Technology companies, utilities, and local governments have opportunities to align infrastructure investment with broader public benefits

  • Community Benefit Agreements can help ensure that local communities share in the economic and social benefits of data center development

  • Stronger public participation and consensus-oriented planning processes may help avoid delays, litigation, and opposition while supporting more equitable infrastructure development

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