Community opposition is adding complexity to data center projects, especially before construction starts. Contractors interviewed by Construction Dive say concerns about power, water, land use and local impacts are shaping site selection, planning and permitting—not yet uniformly stopping projects or disrupting active construction.
Where the backlash is changing project plans
In an October 5, 2026 report, Construction Dive described contractors facing greater scrutiny as data center developers weigh whether a community and its local government will accept a project. The concerns named include electricity availability, water use, land use and the broader effects on nearby communities.
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Chris Teddy, national director of mission critical at JE Dunn Construction, said scrutiny can extend timelines and add complexity during planning and entitlement. That distinction matters: the reported friction is concentrated in getting a project sited and approved, not necessarily in building one after work begins. The report does not quantify how often projects are delayed or establish an industry-wide schedule effect.
Why early-stage uncertainty matters to contractors
Contractors depend on enough certainty about approvals and timing to plan labor and secure subcontractors. Teddy said evolving permit requirements and delayed approvals can make those commitments harder. If a community is unreceptive, he said, a client may consider a different market. “General contractors thrive on predictability,” he said.
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That does not mean every project is being abandoned or slowed. Kim Roy, CEO of HITT Contracting, said she had not seen opposition or restrictions affect active construction schedules at the time of her interview. Her account describes HITT’s experience; it does not cancel out Teddy’s observations about planning and entitlement or establish a universal outcome.
What contractors say can help projects earn a hearing
The contractors’ advice centers on addressing concerns before they become constraints, then showing how the project will respond in concrete decisions and practices.
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Listen before the site is locked in
Greg Werner, senior vice president at Mortenson, said, “The best time to address local questions is before they become project constraints.” Early engagement can bring local objections into site-selection and planning discussions, while there is still room to assess alternatives. Roy described the approach as active listening: “What’s the issue, and let’s address it.”
Connect concerns to design and infrastructure
Community feedback is more useful when it informs project decisions rather than being treated as a communications exercise. The report points to incorporating local concerns into infrastructure and design choices, including how projects handle power, water, noise and land use.
Be specific about local benefits
Contractors recommend explaining workforce and local benefits with specificity. The report does not provide independently measured figures for jobs, supplier spending or tax benefits, so such claims should be supported project by project rather than presented as guaranteed outcomes.
Explain power planning
Power is both an operational requirement and a point of public concern. Werner said, “Power planning should show how customers are supporting new generation and funding necessary grid improvements rather than simply adding demand to the existing grid.” This frames the issue as more than whether a site can connect: project teams may also need to explain how demand and grid improvements are being addressed.
Plan for disruption during construction
Engagement does not end when permits are secured. The recommendations include managing noise and road closures during construction so neighbors understand what to expect and how disruption will be handled.
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Construction Dive’s October 5, 2026 account described policy actions in three states. These are the article’s summaries, not legal interpretations or confirmation of each action’s current status.
- Virginia: The report said Gov. Abigail Spanberger signed a September executive order barring projects with anticipated peak demand of at least 25 megawatts from state assistance through expedited permitting and site-development programs. It also said the order directs agencies to address noise, emissions, water use and electricity demand. The 25-megawatt figure is a reported eligibility threshold for certain assistance, not a general definition of data center size or impact.
- Pennsylvania: The article said Gov. Josh Shapiro signed an August order concerning energy affordability and environmental protection that gives local communities a greater role.
- Texas: The report said Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt data center permit applications until ERCOT completes an audit.
These examples show why project teams are watching permitting and policy alongside local sentiment. The article does not establish that the measures apply identically to all projects or describe their legal status beyond its publication-date account.
Demand remains strong in contractors’ accounts, but the evidence is qualitative
The contractors described demand as strong, including as unprecedented, while also reporting greater scrutiny. Those are interviewees’ qualitative assessments, not a measured demand study. The article provides no figures for the scale of opposition, the number of projects delayed, or the effects on electricity use, water use, emissions, employment or tax revenue.
The clearest practical conclusion is that community acceptance and permitting are becoming more consequential parts of preconstruction planning. Whether that translates into delay, redesign, relocation or no schedule change depends on the project and jurisdiction; the reported interviews do not support a single industry-wide outcome.
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