What data centers are and what communities should expect

Pete McGrath, senior vice president for development and construction at American Real Estate Partners, opened by defining the facilities at issue: "A data center is is simply a centralized building to store and process data," he said, and described common building forms, security and the server 'data hall' as the facility's core.

McGrath walked through typical site and design considerations and said the local economic effects are concentrated in construction and a modest number of operations jobs. He said typical construction spans 18 to 36 months with "1,500 to 3,500 construction jobs" for large campuses and about 50 permanent jobs for a 250,000‑square‑foot facility, with technician and security positions supporting operations. On fiscal impact, he noted that data centers often become among the highest‑assessed commercial properties per square foot, generating tax revenue for schools and local governments while placing relatively low demand on services such as schools and emergency response.

McGrath also described major site selection factors: proximity to high‑capacity electrical transmission, land cost and regulatory predictability, and the availability of a skilled labor pool for construction and facility management. On aesthetics and neighborhood fit, he said modern designs and landscaping usually aim to blend facilities into surrounding industrial or business parks.

On cooling and water use, McGrath explained the industry's staged approach: many days use "free air" (outside air) cooling; on very hot days operators rely on evaporative systems that can use hundreds of thousands of gallons per day as a maximum. He described alternative approaches — reclaimed wastewater, hybrid and dry cooling, and emerging closed‑loop liquid and immersion cooling — and said some technologies are still demonstrators while others can materially reduce freshwater demands.

Community takeaway: McGrath urged residents and officials to ask about utility capacity, cooling choices and long‑term plans for decommissioning or equipment refresh so that local decisions are informed by how particular operators intend to build and operate facilities.