Communities must have the right to say ‘no’ to data centers altogether, but those seeking concessions from developers should demand support for independent local journalism, writes Rebuild Local News president Steven Waldman.
SAN MARCOS, TEXAS – AUGUST 19: Protesters walk together in the March for Water and a Sustainable Future. Activists marched for San Marcos City Park to City Hall to protest proposed data centers in the area. (Sara Diggins/The Austin American-Statesman via Getty Images)
As communities grapple with the rapid expansion of data centers, a significant dialogue is forming around the impacts these facilities have on local ecosystems and economies. The protests and advocacy seen in places like San Marcos, Texas, highlight common concerns: higher electricity prices, increased water consumption, and pollution. While tech giants are often keen to offer community benefits, these often fall short of addressing the broader implications of their operations. In these negotiations, one specific demand should emerge: the funding of independent local journalism.
Local leaders and community members have a vested interest in ensuring that the commitments made by AI companies are not just promises but are upheld over time. This is where local journalism becomes indispensable. Independent reporters dedicated to covering local business and environmental issues can serve as watchdogs, ensuring transparency and accountability. They can track pollution levels closely, examine electricity prices in relation to corporate commitments, report on potential water shortages, and assess the overall effects of temporary workers on housing availability and affordability within the community.
The notion of Community Benefit Agreements (CBAs) is not foreign. Historically, as cable companies sought permissions to expand their infrastructure, they often provided public access channels as a condition for approval. Similarly, C-SPAN was initially conceived as a means to placate regulatory scrutiny from the cable industry. This establishes a relevant precedent where local governments can demand specific community supports in exchange for allowing data center developments.
To ensure that AI companies do not influence local reporting, it’s crucial that funding for journalism comes from an independent source. Companies should be obliged to allocate substantial grants to community foundations, or initiatives like the Press Forward Local News Initiative, aimed at financing endowed business reporting positions. Such an approach guarantees that the journalism produced remains unbiased and is freely accessible to the entire community.
In light of the drastic decline in local news coverage—down 75 percent since 2002—smaller communities often find themselves without adequate resources to monitor significant developments. The absence of local journalists means that important community issues, including the effects of new data centers, often go unchecked. This vacuum can lead to an environment where misinformation thrives, and accountability is severely undermined.
Prominent tech companies like Amazon and Microsoft have already initiated CBAs that promise various community improvements, from funding infrastructure to supporting nonprofits. Local governments can leverage these agreements not only to gain direct benefits for their communities but also to insist on commitments to bolster local journalism. For instance, Henrico County, Virginia, has taken a proactive approach by channeling revenue from data centers into a $60 million housing fund; a model that could be expanded to include funding for independent media organizations.
Interestingly, AI companies may not fully grasp that a robust local news ecosystem benefits them as well. Without adequate journalism, AI technologies might generate low-quality or misleading information regarding local issues. In contrast, AI tools can be used effectively when informed by professional reporters who possess in-depth local knowledge. This synergy can enrich community understanding and promote more educated public discourse.
The ramifications of a dwindling local news landscape extend beyond mere accountability; they encompass larger social and political dynamics. Communities lacking strong local journalism are often more prone to polarization, corruption, and misinformation. By not addressing these issues, communities open themselves to long-term detrimental effects, disproportionately impacting marginalized voices within the locality.
Given the bipartisan discussions surrounding data centers’ impacts—evidenced by calls for restrictions from figures across the political spectrum, including Republican leaders—it is vital to recognize the multi-faceted arguments both for and against them. Communities should retain the prerogative to reject data center expansions that do not align with their values or needs. However, for those that choose to proceed with such developments, the call for bolstering local journalism should be part of the conversation, serving as an essential mechanism for protecting community interests.
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