Trump tells companies to pay ‘dividend’ to communities to make data centres popular
Trump urges data-centre developers to share benefits with host communities
Poinews.com – As opposition to energy-intensive AI infrastructure grows across the United States, President Donald Trump has argued that data-centre developers should offer direct financial value to the places where they build. His proposal centres on a “dividend” for local communities, intended to turn projects often viewed with suspicion into developments residents are more willing to accept.
Companies are rapidly expanding the computing capacity required for artificial intelligence, cloud services and large-scale data processing. But the facilities behind that expansion require significant supplies of electricity and water, creating concern in communities facing higher utility costs, pressure on local water resources or environmental disruption.
Trump said he had been monitoring the sector closely and had reached a firm view: projects that draw strong resistance can become far more acceptable when developers negotiate financial arrangements that respond to residents’ concerns.
“Make their own electricity and give or sell any excess back to the local community, or grid.”
On electricity, Trump said he had personally required data centres to generate their own power and return surplus energy to nearby communities or the grid. He suggested such an approach could help counter rising energy prices, adding that there “could be a substantial decrease” if developers meet that expectation.
Pressure mounts as projects face local resistance
The political challenge is becoming more visible as construction plans multiply. In 2026, at least 47 major projects have been postponed, while more than 1,000 US communities have formally pursued moratoriums, zoning restrictions or stricter environmental rules for incoming AI-related infrastructure, Investing Live said.
Despite those setbacks, investment has not slowed. Analysts at Investing Live expect US spending on AI infrastructure to surpass $10 trillion (€8.9tn) from 2025 to 2032, a level equivalent to roughly 3.6% of US gross domestic product each year over that period.
The debate has increasingly focused on whether local authorities can secure enforceable commitments before approving new campuses. Community Benefits Agreements, commonly called CBAs, have become one tool for negotiating funding, environmental protections and infrastructure responsibilities. Yet reaching an agreement does not automatically settle public opposition.
Texas project highlights limits of negotiated safeguards
A prominent example emerged in El Paso, Texas, where Meta’s planned data-centre development became the subject of substantial backlash. The project, backed by investment firm BlackRock, began as a $1.5 billion (€1.3bn) investment in 2023 before expanding into a proposed $14 billion (€12.5bn) mega-campus.
The scale of the plan prompted officials to consider ending the agreement. In June, however, the local council voted 5-3 against cancelling it. Texas Governor Greg Abbott subsequently announced safeguards intended to protect the local community.
Those measures included requirements for Meta to cover its electrical infrastructure, reuse its own water and commit to eliminating reliance on “outdated taxpayer-funded incentives.” Meta has commented on the agreement but has not addressed the governor’s specific terms. Critics, including Democratic Texas gubernatorial nominee Gina Hinojosa, maintain that the deal does not impose binding obligations on the company.
Meta expects the El Paso construction work to be completed within two years.
Pennsylvania agreement sets out dedicated funds
In September, Lancaster City Council in Pennsylvania signed what was described as the first fully executed CBA for a US data-centre project. The agreement covers the Lancaster AI Hub, a planned cloud-computing and AI complex valued at between $6 billion and $10 billion (€5.3bn to €8.9bn).
The package contains several community-focused commitments: a $10 million (€8.9mn) economic-development fund, a separate $10 million fund for sustainable development and clean energy, and $250,000 (€222,500) for planning. It also provides $10 million in credit intended to protect the city if the project fails to fulfil environmental or financial commitments.
Such provisions illustrate what communities increasingly seek from developers: not only promises of jobs or future tax revenue, but defined resources for planning, clean energy and protection against a project’s possible failure to deliver.
Direct payments gain attention
Another approach appeared in De Soto, Kansas, where Digital Realty received initial public approval in October for a 280-acre data-centre campus. The developer moved past local rules while offering residents direct utility and property-tax credits worth $1,000 (€890) annually for 10 years.
The credits form part of a broader $20 million (€17.8mn) investment. Digital Realty says the project will generate recurring tax revenue, jobs and additional economic benefits for residents.
Similar ideas are gaining traction in Europe. In Ireland, home to one of Europe’s largest concentrations of data centres, OpenAI said in October that future facilities could include payments for local communities to address concerns about their effects. Ireland already applies demanding conditions to data centres, including a requirement that they supply electricity to the grid.
Germany also has stringent reciprocity rules, particularly around energy consumption. In hubs such as Dietzenbach, where Google is developing a multi-billion-euro campus, developers face requirements tied to energy infrastructure before projects can advance.
The emerging model reflects a wider question for the AI boom: whether local communities will accept major computing facilities only when developers assume more of the costs and provide measurable benefits in return. For residents, the issue is likely to remain less about the promise of artificial intelligence itself than about who pays for the power, water and infrastructure needed to support it.
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