Data centers can place significant demands on local water supplies and electric grids, while also bringing construction work, tax revenue, and other investment. But there is no single water-use, household-bill, noise, or jobs figure that predicts what a particular facility will mean for its neighbors. The outcome depends on its cooling system and power needs, local infrastructure and rules, and—crucially—what the developer is required to do.
Water use depends on the cooling system and the local supply
A data center’s water demand is shaped by its size and computing load, its cooling technology, the climate, and whether it uses potable, reclaimed, or other non-potable water. Some water may be recirculated; some may be consumed through evaporation. A withdrawal figure, which measures water taken from a source, is not the same as consumptive use, which measures water not returned to that source. Annual totals also do not show the strain a facility could put on a system during a peak-demand day or drought.
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What the Virginia figures do—and do not—show
A Delaware General Assembly Division of Research report summarizing Virginia figures says the state’s data center industry used 2.1 billion gallons of water in 2023. Just over a third came from reclaimed water, and the total was less than 0.5% of Virginia’s withdrawals. The report says most Virginia facilities used around 6 million gallons that year, while 11 buildings each used more than 50 million gallons. Those figures illustrate variation across one state; they are not estimates for a proposed facility elsewhere, or even a prediction for a particular Virginia site.
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Fairfax County, citing the Interstate Commission on the Potomac River Basin, reports less than 100,000 gallons per day of data center water use in the Potomac River basin and less than 0.1% of the region’s 100 million gallons of upstream consumptive use. The county also says approximately 40% of regional data centers rely on air cooling. These basin-specific figures use a different scope and measure from Virginia’s statewide withdrawal totals, so they should not be compared as though they measured the same thing.
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For a local proposal, request the water and sewer capacity review and look for:
- Annual demand and peak-day demand, with the calculation assumptions and planned computing capacity.
- Cooling technology and the expected balance of potable, reclaimed, and other non-potable water.
- The water source, wastewater volumes, and evidence that treatment and sewer systems can handle the added demand.
- Drought restrictions, backup plans, and whether the facility’s demand could compete with household, business, agricultural, or ecological needs.
- Public reporting, independent verification, and a cost-of-service study that identifies who pays for service and upgrades.
Possible conditions include closed-loop cooling, air-cooled chillers, reclaimed-water use, and annual public reporting. New Jersey’s municipal guidance specifically advises communities to compare peak-day demand and cooling technology with local water and sewer capacity.
Electricity use is not the same as the effect on household bills
Three questions need separate answers: how much electricity a facility uses, what generation and grid infrastructure it requires, and how the utility or regulator allocates those costs. A data center pays for electricity under its applicable tariff, but the need for substations, transmission lines, or other upgrades can have broader rate consequences. Whether residents bear any portion depends on local tariffs, regulation, customer classes, and whether an upgrade serves only the project or a wider area.
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Fairfax County says residents do not directly pay a data center’s electricity bill, but may bear part of some infrastructure costs. The county also describes Virginia measures assigning certain dedicated equipment costs to data centers. This is a jurisdiction-specific description, not a guarantee about how costs are allocated in every utility territory.
New Jersey’s 2026 rate-class plan is an example of an effort to make data centers pay for their energy and associated grid-infrastructure costs through a new ratepayer class and rate structure. The state’s approach also includes mandatory water and energy reporting. Because implementation and utility rules can change, residents should check the current tariff and regulator filings rather than assume the plan’s intended allocation is already in effect for a specific project.
For a proposed facility, ask the utility and regulator for the interconnection study and written cost allocation. Review:
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- The projected peak load, ramp assumptions, and timing of demand.
- Which upgrades are dedicated to the project and which are shared, who owns each asset, and who pays for construction and ongoing costs.
- The applicable tariff or rate class, including any minimum payment or commitment if demand is lower than forecast.
- Reliability and curtailment conditions, and protections for other customers if the project’s demand or projected tax revenue does not materialize.
Noise can affect nearby residents even when a project meets a limit
Cooling equipment can produce a steady hum, while backup generators may be tested periodically and run during outages. A Virginia legislative synthesis reports residents describing persistent humming and effects on quality of life, including in situations where facilities typically did not violate local decibel limits. A measured level within a legal limit does not establish that every neighbor will find the sound unnoticeable; nor does the reported experience establish a universal medical effect.
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St. Louis’s April 2026 approval for one project illustrates how conditions can be made concrete: equipment and generators must be placed away from primary frontages and enclosed in acoustically treated structures. Generator testing is limited to weekday daytime windows and prohibited on poor-air-quality days. These are terms for that project, not general requirements for data centers elsewhere.
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Construction work, permanent jobs, and tax revenue are different benefits
Construction can bring a temporary burst of jobs and local spending; the smaller operating workforce, tax base, and lasting local benefits depend on the facility and its agreements. Do not treat a statewide industry employment estimate or a project investment announcement as a promise of permanent jobs at a single site.
Read job commitments as milestones, not headline totals
The Delaware General Assembly Division of Research summarizes Virginia industry estimates of 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in annual GDP. These are statewide industry estimates, not permanent positions at one facility, and the report notes that economic benefits accrue particularly during construction.
For contrast, a St. Louis community benefits term sheet for a particular project set minimums of 25 jobs in year one, 50 in year two, and 100 thereafter. It also specified local first-source hiring and liquidated damages for job shortfalls. When evaluating a proposal, look for the number and timing of permanent roles, local hiring rules, wage and labor standards, how compliance is measured, and what happens if commitments are missed.
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Compare net public revenue over time
Fairfax County reports $110.6 million in data-center tax revenue in tax year 2026, approximately 1.9% of its FY 2027 General Fund revenue. The county says much of that amount is business personal property tax on equipment, which is subject to depreciation. A fiscal analysis should therefore account for tax incentives, equipment depreciation, service and infrastructure costs, and the years over which revenue is expected—not just the initial assessment or investment announcement.
St. Louis’s term sheet for its specific project also describes a community benefits contribution of $30 per square foot, estimated at $15 million. The city’s approval included a requirement that at least 50% of the project’s energy load come from renewable sources within five years. These are negotiated terms for one project, not a standard contribution or renewable-energy requirement across the industry.
Local reactions can include both costs and perceived opportunities. In reporting on Meta’s Louisiana project, the Associated Press described residents raising concerns about construction traffic and housing pressures, while a local business owner said business had increased. Meta said it planned renewable-energy procurement and water and road infrastructure investment. Those statements and individual experiences are not, by themselves, proof of long-term outcomes.
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Home-value claims need local evidence
There is no reliable, general home-value estimate in the evidence summarized here that can establish how living near a data center affects a particular property. A local assessment would need to account for the site’s distance and visibility, noise and traffic, other development, housing-market conditions, and the project’s actual operating record. Residents considering a proposal can ask officials whether an independent local property-impact analysis exists and what data and time period it covers.
What residents and officials should request before approval
New Jersey’s municipal guidance advises communities to understand infrastructure, utility, emergency-service, resident, and workforce impacts before signing community benefits agreements. A practical review should connect each promised benefit or protection to a document, responsible party, deadline, and remedy.
- Water: Obtain the water and sewer capacity review, projected peak-day and annual demand, cooling design, source mix, drought plan, and any water-rate or cost-of-service study.
- Electricity: Request the utility interconnection study, peak-load assumptions, tariff, and a breakdown of dedicated versus shared grid upgrades, including who pays.
- Noise: Review baseline and operating acoustic studies, equipment locations, generator-testing rules, monitoring locations, complaint procedures, and enforcement measures.
- Jobs and public finances: Ask for construction and permanent job counts separately, local hiring and labor standards, a net tax analysis over time, and the treatment of abatements and depreciation.
- Enforceability: Get any community benefits agreement or approval conditions in writing. Check reporting frequency, independent verification, milestones, the official responsible for enforcement, and consequences for missed commitments.
St. Louis’s project approval shows the range of terms a local government can negotiate, including water-system protections, noise controls, renewable-energy commitments, job milestones, and financial consequences. Whether comparable protections apply elsewhere depends on local authority and the actual signed agreements. For an existing facility, request published operating data, monitoring results, and complaint records rather than relying only on its original projections.
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