Maryland data center developers offer residents biggest-ever US community benefits package as big tech seeks to quell fears — $110 million deal includes $30 million elementary school, water reclamation system, and more

AI data center — (Image credit: Getty / Wisconsin Watch)

Residents of Frederick County, Maryland, could be the beneficiaries of what is purported to be the biggest residential benefits package yet to be offered by data center developers, in a move a new report claims is a sign of a growing trend that Big Tech is trying to get ahead of fears and community pushback surrounding AI infrastructure. The $110 million deal includes new schools, water reclamation, and more, The Information reports.

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Microsoft data center in Mount Pleasant, Wisconsin — (Image credit: Microsoft)

According to the report, the Frederick Digital Campus offering could be a sign that data center developers like Amazon, Microsoft, and Oracle are wising up to growing residential pushback and concerns around the building of large AI data centers in their communities, with developers "sweetening financial offers to municipalities and regulators to gain approval for new facilities" while "getting smarter" about ensuring they shoulder the cost of utilities like electricity. The report says AI builders are turning towards tangible benefits, rather than rhetoric, to get their projects approved.

The Maryland site, if approved, would see residents of Frederick County benefit from a $110 million investment in total, including a $30 million elementary school, $40 million of recreational facilities, a $14.5 million workforce training center, and a further $10.5 million for "agricultural preservation." That comes on top of a purported $215 million in annual property taxes the campus would pay upon completion, a 40% uptick in tax revenue.

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The report further cites occasions where big tech companies are taking the side of consumers and residents over power rate debates, with Microsoft recently said to have challenged an American Transmission Co. and We Energies’ proposal for its Wisconsin data center, claiming the plan wasn't robust enough to protect retail customers from footing the bill if demand was lower than expected. In another case, Google and Amazon are said to have lobbied Virginia regulators to ensure they would fund transmission upgrades required for their infrastructure, rather than let an energy company cover the cost by marking up customer bills.

With concerns around data center buildouts impacting local water supplies, energy rates, and even contributing to noise pollution, it's clear that Big Tech companies appear to be trying to grease the wheels on a local level by investing more directly in some local communities. Big Tech has reportedly now spent more than $1 trillion on AI infrastructure, so even local investments to the tune of hundreds of millions of dollars are a drop in the ocean for companies.

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Stephen is Tom's Hardware's News Editor with almost a decade of industry experience covering technology, having worked at TechRadar, iMore, and even Apple over the years. He has covered the world of consumer tech from nearly every angle, including supply chain rumors, patents, and litigation, and more. When he's not at work, he loves reading about history and playing video games.

13 Comments Comment from the forums

hotaru251

so a 1 time drop in the bucket compared to the profit the corpo will make from it
Reply
habermas

hotaru251 said:
so a 1 time drop in the bucket compared to the profit the corpo will make from it
The article states:

That comes on top of a purported $215 million in annual property taxes the campus would pay upon completion, a 40% uptick in tax revenue.

Reply
bigdragon

Tom's Hardware said:
That comes on top of a purported $215 million in annual property taxes the campus would pay upon completion, a 40% uptick in tax revenue.
"Oh wow, look at that big number! So much money for the communities! The schools will be fully decked out, roads paved smoother than a race track, Frederick Keys stadium expanded, and the tennis and basketball courts can be opened back up again with new nets. Thank you, ."

And that's how they get you. I live in Maryland and can confirm that no amount of money is ever enough. The schools in particular will always try to guilt everyone into dumping endless piles of money into them. Gambling money, Kirwan Commission, and others -- it's never enough. The sports teams and stadiums will go after whatever is left. I'd rather not have the noise of the data center, increased residential utility costs, and local panic in 10-15 years when the site gets completely abandoned because its hardware is obsolete.

The only way I'm supporting data centers in my region is if a theme park gets built in Maryland. I don't care for sports or live music, and that's the only kind of entertainment around now that the Six Flags shut down. I don't care how "responsible" AWS and others are being with their new data center projects.
Reply
Anton_Godlike_Gaming

Theme Parks solve everything...:sneaky:
Reply
bigdragon

Anton_Godlike_Gaming said:
Theme Parks solve everything...:sneaky:
Everyone should support what would make their lives better. New data center tax revenues aren't going to make my taxes go down (Maryland doesn't cut taxes, lol), improve schools beyond where they're already at, or make me suddenly start to enjoy sports. So yes, give me a theme park! Otherwise, go put the data centers in Virginia where they belong and stop trying to put them in Maryland where it's cheaper.
Reply
MobileJAD

bigdragon said:
"Oh wow, look at that big number! So much money for the communities! The schools will be fully decked out, roads paved smoother than a race track, Frederick Keys stadium expanded, and the tennis and basketball courts can be opened back up again with new nets. Thank you, ."

And that's how they get you. I live in Maryland and can confirm that no amount of money is ever enough. The schools in particular will always try to guilt everyone into dumping endless piles of money into them. Gambling money, Kirwan Commission, and others -- it's never enough. The sports teams and stadiums will go after whatever is left. I'd rather not have the noise of the data center, increased residential utility costs, and local panic in 10-15 years when the site gets completely abandoned because its hardware is obsolete.

The only way I'm supporting data centers in my region is if a theme park gets built in Maryland. I don't care for sports or live music, and that's the only kind of entertainment around now that the Six Flags shut down. I don't care how "responsible" AWS and others are being with their new data center projects.
"its hardware is obsolete" I keep finding myself wondering what would happen if suddenly quantum computers became better at running AI than regular old x86 hardware does...
Reply
DS426

bigdragon said:
"Oh wow, look at that big number! So much money for the communities! The schools will be fully decked out, roads paved smoother than a race track, Frederick Keys stadium expanded, and the tennis and basketball courts can be opened back up again with new nets. Thank you, ."

And that's how they get you. I live in Maryland and can confirm that no amount of money is ever enough. The schools in particular will always try to guilt everyone into dumping endless piles of money into them. Gambling money, Kirwan Commission, and others -- it's never enough. The sports teams and stadiums will go after whatever is left. I'd rather not have the noise of the data center, increased residential utility costs, and local panic in 10-15 years when the site gets completely abandoned because its hardware is obsolete.

The only way I'm supporting data centers in my region is if a theme park gets built in Maryland. I don't care for sports or live music, and that's the only kind of entertainment around now that the Six Flags shut down. I don't care how "responsible" AWS and others are being with their new data center projects.

Anton_Godlike_Gaming said:
Theme Parks solve everything...:sneaky:
How about low-cost gaming cafes now that the masses aren't going to be able to afford their own hardware anymore?

BTW, I'm not at all against thrill parks and outdoor recreation. The more the merrier. ;)
Reply
bigdragon

DS426 said:
How about low-cost gaming cafes now that the masses aren't going to be able to afford their own hardware anymore?

BTW, I'm not at all against thrill parks and outdoor recreation. The more the merrier. ;)
Closest we've got is a small chain of GameOn "barcades" in Baltimore, Columbia, Annapolis, and DC. I don't think there are any internet cafes still operating -- just special event LAN Parties and ESports Competitions hosted by maker spaces.

I get animated about this topic because suburban Maryland is all about removing everything fun to replace it with the same cookie-cutter, mid-rise, HOA communities with mixed residential and commercial uses or warehouse clusters. I'm not saying NIMBY to all data centers -- I'm saying I don't like having to drive or fly 2+ hours to get to the nearest roller coaster or water park when they used to be within a 30 minute drive. More tax revenues for the already over-funding education, sports, and other government services won't make my life better.
Reply
jasjourno

habermas said:
The article states:
Love a headline that states hard facts rather than something click-baity. But curious they went with the smaller, one-off amount rather than the bigger, annual payment. Also be interested to see if $215m annually is enough to off-set public utility costs of hosting a large data centre.
Reply
alan.campbell99

Hmm. These AI datacentres are already ridiculously expensive to build and fit out , a few hundred million doesn't add much relative to these costs but it's still an additional cost I should think.
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