SUN’s Position on Data Centers

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Local residents should decide if a data center serves the public interest. Development should only proceed if the community approves after a transparent vetting process that prioritizes 100% clean energy, ratepayer protection, and environmental health and safety.

To evaluate the harms and benefits of data center proposals, local discussions should use the following core principles and practices: 

1. Community control and meaningful involvement

• Communities have the power to reject projects or negotiate to maximize local benefits. 
• Local governments must engage the community early and often, specifically including marginalized voices through energy justice frameworks.
• Public education to help residents understand complex technical proposals. 
• No exceptions to local zoning and siting standards. 

2. Fiscal responsibility and ratepayer protection

• States must prohibit utilities from shifting data center costs onto residential or small business ratepayers.
• Developers, not taxpayers, must pay the full cost of roads, water, sewer, and grid upgrades.
• No local or state taxpayer-funded subsidies for data center developers.
• Contracts should include cancellation penalties, high minimum bills, and collateral requirements to protect the community if a data center closes.

3. Transparency and disclosure

Regulators must require full public disclosure of:

• Economic impact: Independent cost-benefit studies and ROI analysis for any tax credits.
• Operational footprint: Total electric system costs, grid impacts, and identities of all financial stakeholders.
• Contingency plans: Clear protocols if a facility fails to open or ceases operations.

4. 100% Clean energy and grid reliability

• Centers should be powered by new, local 100% clean energy (solar, battery storage, and virtual power plants). Backup diesel generators are prohibited.
• Electricity service to essential services (homes, hospitals, schools) must take priority. Utilities must have the authority to limit data center energy use during emergencies.
• Data centers must use their own storage or curtail their load during peak demand to prevent grid stress and brownouts.

5. Health, safety, and natural resources

• Facilities must not increase local air pollution via fossil fuel-powered generators.
• Use of local groundwater must be strictly limited and controlled. Data centers should be required to implement “water-lean” technologies, such as closed-loop or dry cooling systems.
• Data centers must follow all federal, state, and local environmental laws.