General Guidance
The guidance below covers the baseline considerations every municipality should work through – from master plan conformance to resident and workforce impacts to fire protection readiness – before finalizing terms.
Minimum Considerations for Any Agreement
At minimum, a community benefits agreement should be informed by:
- Master plan conformance – analysis of how the proposed data center project aligns with the municipality’s master plan and any applicable redevelopment or rehabilitation plans
- Infrastructure and resource impact – a clear understanding of how the project will affect the municipality’s resources and infrastructure, and, as applicable, any local authorities including fire districts
- Community engagement – outreach to residents, community leaders, trades, and local non-profits to help ensure equitable distribution of project benefits and training/apprenticeship opportunities, and to identify potential negative impacts that may require mitigation
Evaluating Infrastructure Impact
Municipalities should assess a proposed data center’s impact on above-ground and underground infrastructure by working closely with:
- The municipal engineer
- The head of public works
- Municipal and other utilities servicing the municipality, including electric and water/sewer providers
Depending on the scope of a data center’s infrastructure impact and resource demands, a community benefits agreement could require the data center entity to contribute toward:
- Road reconstruction
- Replacement and improvement of water and sewer mains
- Other key infrastructure
Certain infrastructure investments – such as lead service line replacement, traffic-calming measures, and pedestrian-focused improvements – may also help address historic infrastructure disparities in underserved communities, and municipalities are encouraged to consider these where relevant.
Fire Protection and Emergency Response
Municipalities should evaluate a proposed data center’s impact on fire protection infrastructure and emergency response capacity, including:
- Water supply
- Site access
- Roadway and bridge capacity
- Communications
- The local fire department’s ability to respond to hazards specific to the data center site
Particular attention should be paid to:
- On-site alternative power sources, including emergency generators
- Fuel storage systems
- Battery energy storage systems (BESS)
- Uninterruptible power supply (UPS) installations
These elements can present unique fire, electrical, and hazardous materials risks that differ from typical commercial development. If a project necessitates improvements to public fire protection infrastructure or emergency response capabilities, municipalities are strongly encouraged to require the developer to fund those improvements as part of the community benefits agreement.