In the fight to stop data centers, David vs. Goliath showdowns are playing out in communities across the country, as everyday people work to protect their families and neighbors from the plans of million- and billion-dollar corporations. But many state leaders, rather than stand by their constituents and pass comprehensive protections against data centers, are shirking their responsibilities by promoting “community benefit agreements” (CBAs).

The idea goes that local governments can forge deals with corporations to ensure “community benefits” in exchange for allowing a data center to set up shop. But nothing illustrates our broken political and economic system more than the idea that communities should trade their social fabric and local environment to get a new rec center or some other benefit. 

There is a massive power imbalance between a small town and massive tech corporations like Google, Meta, and Amazon. These corporations have trillions of dollars at their disposal and massive amounts of technical resources and expertise. “Community benefit agreements” are no substitute for powerful and comprehensive regulations. 

State Leaders Are Shirking Their Responsibilities on Data Centers

Amid heavy backlash against data centers, some leaders are stepping up to the plate, while others are swinging and missing. 

In October, Governor Josh Shapiro of Pennsylvania issued an executive order requiring the state Department of Environmental Protection to only review permit applications for data centers where developers agreed to sign a CBA with the local community. In Michigan, Governor Gretchen Whitmer has backed legislation to require local governments to agree on CBAs with developers before issuing permits or approvals.

But the “whack-a-mole” approach of CBAs, where each town is left to fend for itself against the power and wealth of corporations, will only harm communities. Governors have a responsibility to pass strong statewide policies to protect all their residents. That means supporting a moratorium on data centers and developing comprehensive protections for people and the environment.

Already, we’re seeing the deals Big Tech and developers are bringing to communities. The scant “benefits” pale in comparison to the litany of harms that data centers will bring. 

Case Study: Project Jupiter in Dona Ana County, NM

AI giants Oracle and OpenAI have proposed a $165-billion data center in the desert of Doña Ana County, NM. This project, which is spurring the construction of a dirty gas pipeline and attracting fervent opposition, has offered a few concessions to make it more palatable. 

Oracle touts a Payment in Lieu of Taxes totaling $360 million to Doña Ana County for schools, infrastructure, and local services. It’s also donating $6.9 million to community organizations. This may all sound like a lot, but these concessions likely pale in comparison to what Oracle is saving through the project’s tax exemption on purchased server equipment. And while Oracle is contributing $50 million to repair the water system, this is a drop in the bucket compared to the scale of Project Jupiter’s power infrastructure.

Oracle’s offerings come at a heavy environmental price. Project Jupiter could use up to 2.45 gigawatts of energy, enough electricity to power over 2.6 million homes. That power will come from dirty gas, piped from a new 18-mile pipeline delivering 400 million cubic feet of gas every day.

The air quality permit notice for Project Jupiter’s fuel cell microgrid estimates the project will spew a staggering 10 million tons of climate-warming emissions every year — nearly double that of the city of Albuquerque. It will also spew hundreds of tons of particulate matter, nitrogen oxides, carbon monoxide, and volatile organic compounds into the air.

And though Oracle promises its closed-loop cooling system will use less water than traditional methods, using water for Big Tech’s data centers is unimaginable in a place experiencing drought and dwindling water supplies.

Case Study: STREAM Data Center Site Near Tonawanda Seneca Nation

In Genesee County, NY, residents are facing a proposed 500MW data center. The massive STREAM facility promises only 125 permanent jobs. At the same time, it’s receiving lucrative tax breaks, totaling $1.4 billion over 30 years. And while it devours massive amounts of energy, it may pay electricity rates as low as a third of what residents in the area pay.

In efforts to lessen local concerns, STREAM has offered money for local services, including $7 million in Payment in Lieu of Taxes to the County, the town of Alabama, and the Oakfield-Alabama School District; $146 million in fees to the County’s Economic Development Center; and $170,579 in annual fire district fees. 

But these payments pale in comparison to the tax breaks the company is receiving and won’t mitigate the harms of the data center.

New York has already been burned by data centers’ extreme energy requirements. The expansion of cryptocurrency mining (in other words, using data centers to generate digital currencies) drove higher electricity prices, which exceeded the additional tax revenue cryptomines paid. 

Then there are impacts that are unquantifiable and unrecoverable. Data centers’ unhealthy noise levels, destructive construction, and high water consumption can harm their neighbors. In the case of STAMP, those neighbors include the sovereign Tonawanda Seneca Nation. 

The STAMP campus where STREAM will be built has a mere 400 feet buffer from Tonawanda Seneca lands, home to diverse plant and animal species and the cradle of Tonawanda Seneca subsistence hunting and cultural practices. While New Yorkers in Genesee County may consider moving away, the Seneca Tonawanda Nation can’t and won’t. The STREAM data center threatens lasting harm to their land and ways of life.

Case Study: Amazon’s Project Hazelnut in Luzerne County, PA

Residents of Luzerne County, PA, are contending with a massive 1,300-acre data center campus backed by Governor Josh Shapiro. Project Hazelnut’s developer, NorthPoint Development, made a $100,000 donation to Shapiro in 2026, and Hazelnut was one of three flagship projects in the governor’s permit fast-track program.

While Hazle Township passed a moratorium on data center development in June, the fight isn’t over yet. NorthPoint has made a novel offer to local residents: if approved, it would send $10,000 checks to every “eligible” household in Hazle Township. The project also promises $15 million to local organizations like the YMCA in the township and $7 million to set up a police force and cut trash collection fees. 

But it’s unclear if the value of all these promises even exceeds the value of the tax exemptions Project Hazelnut would receive. Such tax exemptions for data centers cost Pennsylvania hundreds of millions of dollars a year.

Moreover, these promises to the “local community” start ringing hollow as soon as you look at a map. Hazle Township forms a ring surrounding Hazleton City, which is three times larger and has a $13,000 lower median annual household income. While both Hazle Township and Hazleton City will bear environmental costs and higher bills driven by Project Hazelnut, NorthPoint has only mentioned Hazle Township in its promises.

Communities Deserve Better Than CBAs! 

Across the country, data center developers and Big Tech corporations are dangling everything from rec centers to better parks to funding for emergency services in front of residents, in efforts to make data centers more palatable. To be clear, local communities should have all these things, and many others. 

But they should receive funding for it through taxes on big corporations and the wealthy, not through lopsided deals struck with mega-corporations. 

Communities deserve leaders who will fight in their corner. Rather than encourage these so-called community benefit agreements, state leaders like Governor Shapiro and Governor Whitmer should stand with their constituents against Big Tech, put an immediate pause on data centers, and work toward comprehensive protections. To do otherwise is a betrayal that will bring real harm to our communities.