Data centers can represent billions of dollars in private investment and create economic activity during both construction and long-term operation. Construction requires skilled trades, contractors, engineers, equipment suppliers, and other local and regional businesses, while operating facilities support permanent technical, security, maintenance, and professional positions.

For communities, one of the most significant long-term benefits can be an expanded tax base. Property and other tax revenues generated by large data center investments can help support schools, public safety, infrastructure, and other local services. Community agreements can also establish measurable commitments around job creation, wages, workforce training, and anticipated tax revenue so residents can clearly understand the economic value associated with a project. 

Examples Include:

• 3,000 construction jobs and 400 permanent jobs created through Microsoft's data center investment in West Des Moines, Iowa.

• More than $2 billion in tax revenue expected from Microsoft's West Des Moines data center project.

• 1,100 new permanent positions committed as part of Amazon's $15 billion data center investment in Northern Indiana.

• 31 full-time jobs paying at least $26.20 per hour guaranteed under Cedar Rapids, Iowa's community betterment agreement.

• 1,800 construction jobs and 100 permanent operating jobs committed by Meta's $1.5 billion data center in El Paso, Texas.
  
  Source: https://www.brookings.edu/articles/why-community-benefit-agreements-are-necessary-for-data-centers/?

Large-scale data center development often requires significant infrastructure planning. Depending on the site, improvements may include roads, electrical infrastructure, water and wastewater systems, utility connections, and communications networks.

The revenue from data centers can improve local water quality.

These projects can create an opportunity for communities to identify needed infrastructure improvements before construction begins and determine how those investments will be funded. Well-structured agreements can clearly establish which improvements are necessary, who is responsible for their cost, and how upgraded infrastructure may provide broader benefits to residents and businesses beyond the data center itself.

Brookings notes that infrastructure commitments can be incorporated directly into community agreements, helping local governments ensure that new development contributes to — rather than simply relies upon — the systems supporting the surrounding community.

Examples Include:

• Infrastructure improvements with local utilities included in Amazon's Northern Indiana agreement to support long-term community growth.

• Water use capped at 20,000 gallons per day and strict noise limits negotiated for the Lancaster, Pennsylvania data center project.

• Closed-loop cooling system and annual public reporting of water and electricity use committed by Meta in El Paso, Texas, reducing reliance on additional local water resources.

• Community benefit agreements commonly address road improvements, electrical infrastructure, water systems, utility coordination, and infrastructure enhancements as part of project approvals.
  
  Source: https://www.brookings.edu/articles/why-community-benefit-agreements-are-necessary-for-data-centers/?

Community benefits can extend well beyond taxes and infrastructure. Data center developers and local leaders can establish formal commitments that direct investment toward priorities identified by the community, including schools, workforce training, STEM education, public safety, parks, nonprofit organizations, digital access, and other local programs.

One tool increasingly used to formalize these commitments is a Community Benefit Agreement, or CBA. These agreements outline specific benefits associated with a development and can include measurable commitments related to jobs, workforce training, infrastructure, community funding, environmental performance, and other priorities.

The goal is greater transparency and accountability: residents can see what has been committed, local leaders can track whether those commitments are being met, and communities have a clearer understanding of how a major development will contribute locally.

Examples Include:

• $400,000 annually for 15 years committed by Google to the City of Cedar Rapids, Iowa through its community agreement.

• $18 million over 18 years committed by QTS to Cedar Rapids, Iowa for community investment.

• STEM learning opportunities for K–12 students included in Amazon's agreement in Northern Indiana.

• Microsoft's West Des Moines project committed to operating on 100% renewable energy while supporting long-term local economic development.

• Community benefit agreements frequently include local hiring goals, workforce development, apprenticeship programs, public transparency, and ongoing community engagement as enforceable commitments.
  
  Source: https://www.brookings.edu/articles/why-community-benefit-agreements-are-necessary-for-data-centers/?