While data centers are buoying the construction economy, they get a bad rap from communities regarding land use, water consumption, pollution, electricity prices and more. But if America wants to remain on grid—and many day-to-day functions require an internet connection, data bank, cell or satellite reception—then data centers are necessary.
Construction Executive sat down with Julia Bonner, president at Pierce Public Relations, to discuss how contractors can prepare for public scrutiny in the face of a data center project.
How does backlash from communities play into the acquisition of land for a data center before a bid even goes out?
Owners and project partners should expect tough questions from community members on data center projects. Community sentiment and site-specific concerns should be evaluated during due diligence because they can affect whether the land is viable for the proposed use and help understand risk before a bid goes out. Communication to the community should begin as early as there are concrete plans that will become public. If communication is not proactive, it can slow or complicate critical steps like zoning and permitting, and delay when contractors would typically begin to take part in the process.
What are the primary complaints from communities who oppose data center projects?
Common feedback from communities who oppose data center projects include power demand that leads to increased utility costs, water use and cleanliness, noise, lack of economic benefit to the community, loss of land and also concerns around aesthetics, given that many of these projects look like black boxes and don’t add to community feel.
Have there been cases where land is allotted, a bid is won, but then the project is pulled due to severe community backlash?
Knowledge about specific cases falls out of our expertise. However, contractors should do their due diligence to understand the public sentiment surrounding a project before they become involved, including how the community has responded to earlier decisions and how that history could shape perceptions of their involvement.
Our counsel is always to prioritize building trust before it is needed. In the case of data centers, one of the biggest issues we’re seeing play out is that speed is being prioritized before trust is built. Communities are leery of these projects, and questions remain about their impact. Moving fast and waiting to communicate later has been proven to be a costly mistake. And when communities are left to fill a communication void with their own assumptions or understanding, those narratives are usually unfavorable and very hard to change.
How can companies quell community discontent?
First, the goal is not to quell community discontent. The goal is to build trust and communicate clearly so that community members understand the potential impact of the project and actions being taken to address their concerns and priorities. The best way to earn trust is to listen early, respond honestly and demonstrate how community input has influenced the project.
Communication should be proactive, consistent and as transparent as possible. Reactive communication, or worse, forced communication via mandatory public meetings, will be met with resistance and can have damaging, long-term reputational impacts on contractors and all project partners.
Companies should be honest about the tradeoffs of these projects, set clear expectations and provide accessible ways to ask questions and respond with specific actions rather than general reassurances. They should also be clear about what can change, what cannot and why. Data center projects require a communication strategy that is as thoughtful and rigorous as the processes that go into their creation.
What should be worked into a contract from a legal perspective to protect a contractor/project in this instance?
Legal advice is outside of our expertise. From a communications perspective, however, we always recommend documenting who owns each part of the communication process. It’s important that all parties know who approves messaging, responds to media and community questions, shares project updates and leads communication if an issue escalates. Clear responsibilities and response protocols help prevent delays, miscommunication and confusion when timely communication matters most.
Should contractors take community concern into the design-build process? Should it influence their plans?
Community feedback should always be considered. Although a contractor may be working on only one project in a specific community, criticism, protests and negative news coverage can have ripple effects far beyond a local geography. For that reason, contractors should do their best to understand community concerns and work with project partners to develop solutions. Community feedback should not dictate every project decision, but ignoring it completely is irresponsible and can erode trust and goodwill.
What are contractors liable for in this situation? What are owners liable for? How can contractors/owners protect themselves from liability?
Legal implications are beyond our expertise. Regardless of what an owner or contractor is legally responsible for, they should always consider the reputational impacts of their actions. There is an oft referenced saying that “relationships are built at the speed of trust.” Construction firms rely on relationships to win work, compete for talent and get their jobs done. Even if a contractor isn’t legally responsible for specific actions taken on a given project, they can still become the face of an issue if the response is poorly handled. For that reason (and many more), contractors should have a solid communications strategy in place and always be working to build trust and protect their reputations.
What should contractors consider when communicating about data centers?
The biggest lessons learned from current AI center builds are that communication needs to be rooted in honesty and transparency and backed with specifics wherever possible. General messages and vagaries aren’t going to cut it. Firms need to show that they are truly committed to the communities they are working in. That could look like investing in local education through HVAC, data center technician or skilled trades programs; sponsoring scholarships for students pursuing relevant technical studies; improving roadways or other infrastructure surrounding the project site; or providing an annual community impact report. These shouldn’t be surface-level actions, but rather intentional investments that take the community’s feedback and priorities into consideration.
Contractors should also:
- Stay in their lane: Be clear about what they control, such as construction traffic, noise, schedules, safety and site activity, and direct questions about development decisions, utilities or environmental impacts to the appropriate project partner.
- Coordinate before speaking publicly: Align with the owner, developer and other project partners on the facts and define spokesperson roles so the community does not receive conflicting answers.
- Avoid promises they cannot guarantee: Ensure every commitment is verified, approved and within the contractor’s authority to fulfill.
- Plan for two-way, ongoing communication: Establish a consistent point of contact, provide regular updates and create a clear process for addressing questions or complaints.
What is the biggest communications mistake you’ve seen contractors make in the data center project rush?
We work with our clients to build trust with the public before asking them to accept significant change. One of the biggest issues we’ve seen is waiting too long to communicate. Communities can feel like data centers are being dropped into their communities whether they like it or not, and there is little transparency about the trade-offs or what this new infrastructure means for them. AI data centers have moved faster than the introduction of other technologies, which leaves questions around their impact, resource demand and capital buildout unclear. The gaps that the rapid planning and buildouts have created are being quickly filled by the voices of those who strongly oppose their existence in their communities. We see this time and time again. When there’s a communication void, others will quickly fill it with their own narratives.
SEE ALSO: COMMUNICATION GAPS CAN COST CONSTRUCTION FIRMS IN THE DATA CENTER BOOM
