Digital Realty, a US-based real estate developer, has proposed giving households in De Soto, Kansas, $1,000 in utility and property tax credits annually for a decade as it seeks to gain local support for a planned data centre project.
The offer comes amid growing opposition to data centre construction across the United States, where residents have raised concerns about environmental damage, pressure on local resources and rising electricity costs.
Digital Realty’s proposal is part of a $20 million community investment commitment tied to the development of a data centre site in De Soto. The company is preparing to begin work on a 280-acre site, with plans for the broader project to eventually cover 1,400 acres.
“Digital Realty builds critical infrastructure that enables the modern economy, and we believe we also have a responsibility to help strengthen the communities that make this growth possible,” the company’s president and chief executive, Andy Power, said in a statement on Wednesday.
The company said the development would generate recurring tax revenue, create employment opportunities and deliver other economic benefits to residents.
Digital Realty, which is publicly traded and headquartered in Austin, Texas, has a market value of more than $67 billion. In a news release, it said it was working with De Soto officials to finalise how the proposed $1,000 credits would be distributed to households.
The developer’s clients include Amazon Web Services, Microsoft and Nvidia, according to the supplied report.
Digital Realty expects the completed facility to support about 250 permanent jobs for local suppliers and contractors. It also said the initial construction phase would create opportunities for thousands of construction workers over time.
The project is expected to expand beyond the initial 280-acre site as development progresses, eventually occupying 1,400 acres.
However, the company’s investment pledge comes as public resistance to new data centres grows in parts of the US. A recent CBS News poll found that more Americans opposed than supported the construction of a data centre in their local area.
Concerns cited by residents include the facilities’ potential environmental impact, their demand for water and other local resources, and the possibility that increased electricity consumption could push up utility bills.
Digital Realty’s proposed credits and broader community investment are intended to demonstrate the potential benefits of the De Soto project as the company works with local officials to advance its plans.
