Data center developers are overhauling siting and engagement strategies as local community opposition stalls new campus projects.

Data center developers are adjusting everything from their public messaging to facility designs as projects stall amid escalating backlash against these installations across the Valley and the nation.

Despite surging demand for capacity driven by the artificial intelligence boom—national data center vacancy rates have held steady at just 1% for three consecutive years—securing local community support has emerged as the industry’s most significant obstacle, according to a recent JLL report.

Currently, more than 66 gigawatts of data center capacity are under construction across North America, with approximately 2 gigawatts actively underway in Arizona, JLL noted.

In Phoenix and neighboring municipalities, the entitlement process for new data centers is “infinitely harder” today than it was a year ago, said Adam Baugh, a partner at Withey Morris Baugh PLC whose client portfolio includes data center developers.