Register now to attend the program, “Data Centers: Issues of National Infrastructure, State Investment, and Local Sustainability,” on Thursday, September 3, 2026, 12:00–1:30 p.m. CT, as part of the American Bar Association Business Law Section’s upcoming Fall Meeting in Chicago, Illinois.
Data centers have gained popular attention in the United States of late, driven by an expansion of development fueled by the artificial intelligence boom. This surge captures significant public interest as communities adjacent to these facilities—whether proposed, under construction, or in operation—have mobilized to voice their opposition. Local residents and officials express deep concerns regarding the excessive strain placed on the local electricity grid and the rapid depletion of clean water sources necessary for cooling operations. Beyond infrastructure, communities voice frustration regarding the environmental nuisances brought by these massive facilities, specifically excessive heat and noise pollution. Furthermore, there is a pervasive skepticism within these areas regarding whether the projected promises of jobs and economic prosperity are justified and tangible realities.
Daily digital interactions rely fundamentally on these facilities. Whether sending a text message, composing an email, or engaging with generative AI tools, the data transmitted and consumed traverses various data centers. These facilities are energy-intensive, using substantial electricity to power the transmission and manipulation of data. To manage the heat generated by this processing, most rely on water-cooling systems, although some employ air-based systems. The increasing adoption of advanced AI models is driving a corresponding acceleration in data centers’ electricity consumption. Consequently, while users across the globe benefit from this connectivity, the specific host communities are often tasked with shouldering a disproportionate share of the environmental and infrastructural burdens.
This apparent disconnect between broad benefits and localized costs forms the core of the proposed discussion. It led to the development of a working thesis: durable data center development must prioritize and preserve meaningful self-determination for host communities. A conscientious business lawyer acting as deal counsel, policy strategist, or community advocate can play a key role in manifesting this principle. Through strategic drafting of contracts, the design of robust processes, and the facilitation of genuine community engagement, legal professionals can help align development goals with local needs.
The conversation surrounding data centers is currently in flux, particularly in established markets. Northern Virginia remains the benchmark as the world’s largest data center market, a status achieved in part through significant state-level incentives. Virginia’s retail sales-and-use tax exemption played a key role in supporting this growth. However, the legal setting remains unpredictable. In March, a Virginia appellate court ruled that the rezoning approvals for a major proposal, the Prince William Digital Gateway, were void due to defective public notice. This ruling resulted in the cancellation of a project reportedly intended to be the world’s largest data center, highlighting the critical importance of proper procedural compliance.
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In response to similar pressures, other incentive-driven markets are shifting their approach. Texas, another key player in the industry, has moved to address popular opposition by directing state agencies to conduct audits. Governor Greg Abbott has instructed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to scrutinize certain projects. Additionally, the state is taking steps to increase transparency by mandating the release of critical information to the public. This includes details regarding a project’s receipt of public financial assistance, its projected power and water demand, and the specific measures implemented to reduce neighborhood impact.
Multiple layers of uncertainty persist for the future of this infrastructure. The upcoming administration’s energy policy will likely intersect directly with the surging demand for power from data centers. Beyond policy, the physical footprint of these facilities raises further questions. What happens to sprawling data center facilities if technology advances render such large footprints obsolete, or if shifts in data consumption patterns occur? Furthermore, there is a significant risk regarding operational continuity; should an operator or tenant decide to leave, the facilities could potentially fall into disuse, leaving local communities responsible for decommissioning and a failed economic promise.
The Showcase Program aims to help attendees handle these complex issues through a diverse panel. The session will feature a leading professor, a data center developer executive deeply immersed in responsible development practices, and lawyers possessing extensive expertise in transactional, financing, and tax matters. The discussion will cover the fundamental definition and function of data centers, moving on to the complex legal and political considerations that shape their development. Particular focus will be placed on tax incentives and financing structures. Crucially, the panel will explore how business lawyers can leverage their skills to catalyze meaningful community agency.
Participants can expect to receive concrete takeaways tailored to their specific professional roles, supporting lively and informed conversations. The goal is to equip attendees with practical questions and a deeper understanding of how complex influences and concerns can be aligned to support host communities. I hope you will join us.
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