Community Benefits Agreements – Securing Benefits for Communities Hosting Data Center Projects

Across the U.S., the development of hyperscale data centers is accelerating at an unprecedented scale and pace, largely driven by artificial intelligence and cloud computing. The U.S. houses close to 4,000 planned, built and already operational data centers, with many hyperscale data centers being concentrated in a smaller number of states, including Virginia, Texas, Illinois and Ohio.
This rapid expansion has sparked intense local concern over skyrocketing energy consumption, rising power bills, heavy strain on local water supplies, and localized air and noise pollution. Crucially, these facilities can compound existing economic and environmental challenges within marginalized communities.
In some cases, community resistance and policy action have led to projects being blocked. In other cases, projects are moving forward, often without community consent and limited community engagement and no meaningful negotiation around benefits.
While no silver bullet, Community Benefit Agreements (CBAs) are emerging as an essential governance tool. Alongside ratepayer protections, environmental regulations, and modernized zoning codes, CBAs help local leadership navigate complex trade-offs
. Join WRI as they break down both public and private CBAs currently being negotiated in host communities.