At the New York Build Expo in New York City, industry leaders emphasized that future data center developments must go beyond technical execution and incorporate tangible benefits for surrounding communities.
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The discussion comes as developers accelerate large-scale projects across the U.S., including a multibillion-dollar data center planned by TeraWulf in Hawesville, Kentucky. The site offers strategic advantages such as proximity to major Midwest cities and access to 480 megawatts of existing power—key factors driving rapid development timelines.
To deliver the project, TeraWulf tapped Fluor, citing its ability to “deliver quality and safety without sacrificing speed,” according to John Palmer, senior vice president of advanced technologies.
Despite strong demand for digital infrastructure, panelists warned that public resistance is becoming one of the biggest obstacles facing data center expansion.
“The number one concern we have in the market right now is public sentiment,” said Rob LoBuono of Gensler. “Some people actually see the impacts of these buildings if they’re not designed well. There’s noise concerns, there’s concerns about construction, there’s concerns about potentially pollution.”
Concerns over environmental and community impacts have already reached policymakers. In New York, lawmakers have proposed a three-year moratorium on new data centers exceeding 20 megawatts, reflecting growing scrutiny of the sector’s footprint.
In response, experts say developers must treat community investment as a core project requirement, not an afterthought.
“We have to think about them not just as stand alone facilities and buildings,” said Alexandra Abreu-Pina of Aufgang Architects. “We have to think about them in the context that they’re getting into and how they’re actively impacting the communities they’re arriving at.”
Suggested community benefits include:
Major tech companies are already incorporating such strategies into large-scale builds. For instance, Meta has committed hundreds of millions of dollars toward infrastructure improvements tied to its data center developments in Louisiana and Indiana, while Amazon has pledged similar investments alongside community-focused initiatives.
“Any community is going to be looking at the cost-benefit,” said Kelly Bacon, vice president and data center market lead at AECOM. “How can you convince a community that they’re getting something good?”
Beyond local concerns, critics argue that data center projects carry broader environmental and social risks. In his book Contesting Megaprojects, author Gerardo del Cerro Santamaría contends that such developments can have disruptive long-term consequences.
“Megaprojects are not merely transformative, but rather, they are inherently disruptive,” del Cerro Santamaría said in a statement to promote his book. “The reason is not cost overruns and poor megaproject management, but the disruptive impacts that megaprojects have on urban areas.”
He further highlights issues such as high energy consumption, water usage, noise pollution and electronic waste generation.
“Data centers cause highly problematic impacts, due in part to their energy demands,” del Cerro Santamaría writes in the book. “We must also consider the environmental damage they cause. As more data centers are built in cities, their impacts will affect an increasing number of people.”
Taking a stronger stance, he added: “In view of the destruction they cause I have to say no. Anything that prevents building data centers in big cities is good.”
While concerns continue to grow, many industry leaders argue that outright bans could backfire, pushing development to other regions rather than solving underlying issues.
“When you say no, the industry is going to move on,” said LoBuono. “We should be saying yes, but with the right requirements.”
As demand for AI, cloud computing, and digital infrastructure accelerates, the debate underscores a key shift in the construction and development landscape: successful data center projects will increasingly depend not just on engineering excellence, but on their ability to deliver meaningful community value.
Originally reported by Sebastian Obando, Reporter in Construction Dive.
