Massachusetts communities are increasingly scrutinizing the expansion of data centers associated with the artificial intelligence (AI) sector, raising concerns that extend beyond traditional issues like utility consumption and property rights. Residents and local officials alike are seeking more substantive compensation as these large-scale facilities become visible fixtures in their neighborhoods.

Data centers, characterized by massive, windowless buildings housing rows of servers, have stirred unease among residents worried about their impact on local infrastructure and quality of life. Alongside worries about electricity and water usage, concerns include noise, increased truck traffic, loss of green space, and changes to community aesthetics. These concerns have prompted some municipalities to reconsider or temporarily halt new data center approvals.

In Lowell, a moratorium on data center development is currently in place as city officials evaluate zoning regulations. Westfield has introduced a one-year pause on projects following resistance to a proposed data center campus estimated at multibillion-dollar investment. Newburyport officials have questioned whether the city’s water supply can support large developments while also fulfilling housing needs. These examples illustrate growing local caution about accommodating the resources and scale these facilities demand.

The state government, under Governor Maura Healey’s administration, has taken steps to empower local communities in this process. A recent executive order mandates local approval for large data centers prior to issuance of certain state permits, and emphasizes the need for community-benefit agreements as part of the approval process. The order also requires developers to bear the costs of energy infrastructure upgrades, alleviating the financial burden on residents and businesses.

However, advocates argue that covering infrastructure expenses is insufficient compensation given the limited direct economic benefits data centers provide to host communities post-construction. Unlike traditional factories, which historically supported extensive local employment and contributed to neighborhood vitality, data centers require relatively small permanent staffs despite vast land use and resource consumption. Local governments typically supply land, power, and water, while most profits and jobs often accrue elsewhere.

Community-benefit agreements, they say, should reflect the tangible costs imposed on residents. Proposals include demanding electricity credits or direct cash payments to neighboring households, securing conservation land within the town, ensuring compensation for potential declines in property values, and requiring developers to remove obsolete facilities at their own expense. Such measures aim to ensure the benefits of hosting these facilities are visible and meaningful to local populations.

Examples from other regions highlight the potential value of such arrangements. In Hazle Township, Pennsylvania, NorthPoint Development’s data center proposal includes offering $10,000 to eligible households, a $7 million annual commitment over 15 years toward township services, and $15 million for workforce training, education, and recreational programs. Although opposition remains, this package underscores the negotiating leverage communities can exercise when approving large-scale data center developments.

The rapid growth of AI and the infrastructure supporting it underscores the physical demands of technology once perceived as intangible. As data centers proliferate, Massachusetts towns recognize their newfound bargaining power and are increasingly seeking to ensure that hosting such projects brings real, measurable benefits to their residents.