Data Centers: Yes, No, or Yes With Conditions?

The proposal

Every candidate for mayor should say where they stand on new data centers, and defend that answer against the strongest case for the other two. Before anyone says yes, no, or yes with conditions, they should answer the seven questions below, in writing.

This article lays out the best case for each answer and the test we think any answer should pass. It is an opinion piece to be argued with, and we invite candidates to argue with it.

Why this is a mayor's decision now

Data centers have become one of the most contested local issues in the country. A moratorium tracker counted 219 local moratoriums nationwide as of August 4, with 183 still active. Denver, Minneapolis, and Seattle have all moved toward pausing new projects, while other places have welcomed them.

Many cities were caught unprepared. Zoning codes written before the data center boom often have no way to account for these facilities, so officials are writing the rules as the applications arrive.

The best case for each answer

Yes: welcome them

Supporters point to tax revenue, construction payrolls, and permanent jobs. A St. Charles, Missouri mayor said a proposed $1 billion project would have brought about $9 million a year, roughly what the city's casino generates. A developer argued that projects like it can bring tens of millions of dollars in new tax revenue and more than 100 high-paying permanent jobs. Revenue can help a city hold down taxes elsewhere. Minneapolis's mayor said a data center with minimal impact on water and power could help recover lost tax base and make the city more affordable. Supporters also argue that the facilities are part of the digital infrastructure the economy runs on, and that blocking them only sends the investment to a neighboring city.

No: keep them out

Opponents point to scale. One data center can use as much electricity as 80,000 households, and some can use up to 5 million gallons of water a day, as much as a small city. In one area, electricity rates rose 24 percent in 2025, which the local utility attributed to new data center demand. Opponents also note that the long-term job count is small compared with the construction workforce, that noise, light, and diesel backup power affect neighbors, and that the tax benefit may be smaller than promised. In one city that studied it, a data center produced little sales tax and modest property tax, with a utility tax of roughly $10,000 per megawatt a year as the main revenue. A March 2026 Gallup poll, as cited in Bloomberg Tax, found 71 percent of Americans oppose local data center construction.

Yes, with conditions: allow them, on the city's terms

The middle position says the question is not whether but on what terms. Cities and states are using a growing toolkit:

Large-load electricity tariffs: special rules under which data centers pay for the grid upgrades they cause, often with long contracts and collateral. As of May 2026, 23 states had approved at least one.
Closed-loop cooling and water-source rules: the city requires water to be recycled, and sets which sources a facility may use. One developer in Delaware said its closed-loop system would use about as much water per year as a large office building, which is a claim the public can test.
Site rules: preferring already-developed or industrial land, and setting noise, light, and backup-power limits.
Community benefits agreements: written commitments on local hiring, road repair, emergency services, and payments to the community. Cedar Rapids, Iowa, negotiated operator contributions to a community fund.
A pause while the rules are written: Minneapolis passed a six-month moratorium by an 8-5 council vote.

Critics of this answer say conditions are only as good as their enforcement, and that cities competing for the same projects may end up offering generous incentives. Some economists say many governments give more tax incentives than needed to attract data centers.

Seven questions for every candidate

Who pays for the power? Will data centers pay for the grid upgrades they cause, so residents and small businesses do not?
Where does the water come from? What source, how much, and what happens in a drought?
What does the city actually collect, and for how long? Show the numbers, including any tax breaks given up.
How many permanent jobs? Count them honestly, apart from construction.
What are the site rules? Where are they allowed, and what are the limits on noise, light, and backup generators?
What does the community get in writing? Is it enforceable, and who checks?
What is the exit plan? What if a project is abandoned or the technology changes, and should the city pause approvals while it writes the rules?

One caution for every candidate: a mayor does not control everything here. Electricity rates and tariffs are generally set by state utility regulators, not by city hall, and some projects sit outside city limits. Officials in some Texas cities said they had no power to intervene for exactly that reason. A good answer says which of these a mayor can decide, which they can only influence, and how.

The tradeoffs

Who pays: under a ban, residents give up possible revenue and jobs. Under a welcome, they may bear costs in rates, water, and neighborhood impacts. Under conditions, the city takes on the work of writing and enforcing the rules.
Who benefits: each answer helps a different group first. Revenue helps the budget, a ban helps nearby neighbors and ratepayers, and conditions try to help both.
The risk: a pause that never ends can become a ban by default, and a welcome without rules can become a bill for residents.

What would change our mind

Show us a city where data center conditions were written, enforced, and kept electricity and water costs flat for residents, and the case for conditions gets stronger. Show us one where they failed, and the case for a pause or a ban does. And if someone can show that a ban simply moves the facilities one town over with the same impact on the region, we would want to hear how a city should respond.

Data centers: yes, no, or yes with conditions?