Datacenter developers want your backyard. FAS says negotiate harder
- ID
- 24291
- Status
- summarized
- Published
- 15 Sep 2026, 1:26 AM
- Fetched
- 15 Sep 2026, 1:34 AM
- Provider
- The Register
- Category
- technology
- Original URL
- https://www.theregister.com/on-prem/2026/09/14/datacenter-developers-want-your-backyard-fas-says-negotiate-harder/5296308
- Source URL
- https://www.theregister.com/headlines.atom
Summary
- Score
- 4.5
- Created
- 15 Sep 2026, 1:35 AM
- Tags
- Audience
- saas_foundersai_ml_learners
What happened
The Federation of American Scientists published a report advising US local governments on negotiating Community Benefits Agreements with datacenter developers, covering tax breaks, water, noise, and decommissioning. Some US states are losing over $1 billion per year in tax abatements and rebates, and the report recommends not granting exemptions beyond five years without renegotiation. Only one of the 10 CBAs examined—between Lancaster, Pennsylvania and developers of two AI campuses—is explicitly structured as a community benefits agreement.
Why it matters
For Malaysian builders watching the Johor datacenter boom, this report is a concrete reference template for what local governments should demand—tax renegotiation clauses, water and energy caps, e-waste and decommissioning terms. Founders and infra operators should expect Malaysian state authorities to eventually adopt similar negotiating frameworks, which could change land deals, power allocations, and local hiring requirements.
Discussion angle
Compare the US CBA template against what Johor local authorities currently require of datacenter developers—what gaps exist and whether Malaysian builders should prepare for tighter terms as AI campus construction accelerates.