Jordan Famularo and Thomas Gaultier Jordan Famularo and Thomas Gaultier

Part 2 of 2. When data centers should begin community engagement, and how to judge its quality

For investors seeking exposure to the long-term growth of the digital economy, the stakeholder politics of data centers is becoming increasingly vital. Community resistance is changing risk dynamics for equity, credit, and fixed-income investors. To decode the most weighty issues for investors — and give them a window onto diligence and oversight for social risk in the digital infrastructure landscape — Thomas Gaultier and Jordan Famularo transfer cutting-edge learnings from the extractives and energy sectors. In this Part 2 of a two-part series, Gaultier and Famularo outline the quality signals that investors should examine when assessing community engagement by data center developers, operators, owners, or tenants.

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Jordan Famularo and Thomas Gaultier Jordan Famularo and Thomas Gaultier

Part 1 of 2. What investors should know about data centers’ social risks

For investors seeking exposure to the long-term growth of the digital economy, the stakeholder politics of data centers is becoming increasingly vital. Community resistance is changing risk dynamics for equity, credit, and fixed-income investors. To decode the most weighty issues for investors — and give them a window onto diligence and oversight for social risk in the digital infrastructure landscape — Thomas Gaultier and Jordan Famularo transfer cutting-edge learnings from the extractives and energy sectors. In Part 1, investor considerations for social license to operate are compared between data centers and other types of significant land-use projects. Gaultier and Famularo also clarify how investors should think about costs of community conflict and Social-Risk-Adjusted Net Present Value. Part 2 follows in another post.

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Jordan Famularo Jordan Famularo

A critical take on Amazon’s Data Center Commitment, October 2026

The announcement of Amazon’s Data Center Commitment on October 2, 2026 provides investors with some corporate governance red flags and lines of inquiry related to social license to operate. It also provides a comparison for Microsoft’s Community-First AI Infrastructure plan, which was initiated in July. Rather than weigh the two companies’ promises against each other, investors should focus on corporate governance of social risk through the community relations function. As part of this analysis, the language that Amazon deploys to present the Data Center Commitment offers some warning signs that should prompt investor assessment.

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Jordan Famularo Jordan Famularo

A new kind of contract for AI infrastructure projects and communities

Rather than killing data center construction projects, the American public is conditioning them on social license to operate. There are problems with procedure: local residents feel “railroaded” by timelines and decision-making processes that leave them with little or no influence. And this affects the quality of relationship between the community and the project together with its sponsors, investors, developer, and/or operator. There is a contractual way to improve the relationship by customizing new institutions for sharing decision-making between companies and communities, each suited to local context. This is the Good Neighbor Agreement, a type of community benefit framework. This post describes examples of this kind of agreement and provides assessment questions for investors, sponsors, developers, and operators.

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Jordan Famularo Jordan Famularo

Data center developers: overdoing the resource contest, losing the culture conflict?

Reacting to widespread opposition against data centers in recent months, leading hyperscalers have created a new vulnerability. They have overfixated their community relations on resource distribution (who spends what, who gains what, who loses what). But in prioritizing the delivery of benefits to communities in exchange for their permission to build, developers risk losing the broader culture struggle. In turn, this oversight could drive the business costs of conflict up, not down. A central problem for data center developers — one that operators could inherit — is that they are doing little as an industry to show the public how decisions about distributions of costs and benefits are being made, and neither are they emphasizing how community governance contributes to those decisions.

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Jordan Famularo Jordan Famularo

Delivering data center redesign plans to the public in New Mexico

In June 2026, Oracle Cloud Infrastructure announced a redesign of Project Jupiter in response to community concerns and described the changes in the Santa Fe New Mexican, a newspaper reaching residents of Dona Ana County where the facility is sited. Since local opposition is de facto for this case and explicitly led to a redesign, it’s a good example to evaluate for strength of public relations strategy.

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Jordan Famularo Jordan Famularo

When mobilizing support ends up fueling outrage

“The water consumption challenge for data centers is largely solved,” Josh Parker, CSO at Nvidia, told Axios in June 2026.

Nvidia had just announced on its company blog that its latest AI servers, when running in favorable climates, can run on liquid-cooling architecture that doesn’t need chillers, reducing a data center’s water consumption for cooling purposes to near zero.

Though Nvidia’s announcement called this “one of the biggest efficiency leaps in data center history,” let’s consider some possible adverse consequences from a public relations viewpoint. What could follow from this effort at mobilizing support for the AI infrastructure buildout by lauding Nvidia?

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Jordan Famularo Jordan Famularo

Data centers and reputation at risk

The conversation about AI data center build-out sites has started to focus on the communication dynamics driving the controversies. Companies and investors with financial stakes in AI infrastructure construction must have a strategy for managing material risks from community opposition. Insights into misinformation and opposition trends are given.

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