Google Expects to Invest $1 Billion in U.S. Data-Center Communities

Google expects to invest $1 billion in U.S. community programs tied to data centers through 2027, while promising full property taxes and earlier disclosures amid disputes over local costs.

The company says it will pay full real-property taxes on the land and buildings at every new campus. It plans to disclose its role by its first project application or public meeting and publish some project-level information on water, sound, light and traffic. Google also says it will stop using nondisclosure agreements with state and local governments, with limited exceptions for trade secrets or operational security, and cover the electricity its data centers use and their direct grid-connection costs.

Devi Thomas, Google’s global head of community development and engagement, said “there are often community questions to be addressed.”

A report released Oct. 9 by Sens. Elizabeth Warren, Chris Van Hollen and Richard Blumenthal followed a nearly yearlong inquiry into seven data-center operators. The senators concluded that companies’ energy commitments covered infrastructure that exclusively benefits their facilities, while costs for shared grid upgrades could remain with other ratepayers. They also criticized the companies’ use of nondisclosure agreements and pursuit of tax incentives. Their criticism of tax incentives also covered equipment; Google’s tax pledge applies to campus land and buildings.

Local opposition has also shaped project decisions. Montour County commissioners in Pennsylvania rejected Talen Energy’s Anthony Township rezoning request in a 3-0 vote Feb. 10. At a January hearing, Amazon Web Services representatives said they were evaluating a potential campus with Talen. The county’s written reasons cited unquantified benefits and a lack of binding commitments. One commissioner said residents learned about the project before Talen engaged them.

Sam Burleigh, co-founder of Concerned Citizens of Montour County, called Amazon’s commitments “propaganda.” Amazon plans to add more than $1 billion to community investments over the next five years. The company also says it will publicly report energy and water metrics annually and use Tier 4 or equivalent backup generators at new sites.