Data centres must move beyond efficiency and put community benefits at the heart of development, according to Gareth Williams, Director, UK, India, Middle East and Africa Data Centres and Technology Leader at Arup.

Concerns over the future of data centres brought about by the rise of DeepSeek are beginning to wane and companies from Blackstone to Microsoft, alongside nations like France and the UAE continue to deploy huge sums of investment to meet the growing demand for data centres to train artificial intelligence models and deploy applications.

Despite these investments, fears over the construction of data centres near residential areas and the environmental impact are growing louder. Some critics argue that data centre expansion should be reined in to mitigate these supposed effects. But we cannot afford to lose sight of the bigger picture – data centres are the backbone of AI and digital infrastructure, and investment in them must go hand in hand with sustainability and community integration.

The UK has an opportunity to lead in developing low-carbon, high-efficiency data centres that can do more than just house technology – but to reap the benefits they must be designed in a way that actively contributes to local communities and environmental goals.

The challenge is not whether to stop building them, but how to do so responsibly. Simply making data centres more efficient will not curb demand, if anything, it will accelerate it. Rather than operating as anonymous ‘black boxes,’ data centres must evolve into active and engaged community members or in essence ‘good neighbours’. That means flipping the script, putting community benefits at the heart of development, not as an afterthought. Early engagement, sustainable design and local investment can turn opposition into collaboration, ensuring data centres enhance, rather than disrupt, the places they call home.

The end of the ‘Black Box’ era

Historically, data centres have operated under the radar. Unlike power stations or transport hubs, their purpose is less obvious to the public. This invisibility has traditionally benefited developers, allowing for minimal local resistance. However, in an era where AI transparency and sustainability are non-negotiable, a low-profile approach is no longer viable – making the existing planning model no longer fit for purpose.

Currently, community engagement does not begin for the first 18 months of the planning process, meaning by the time residents are consulted, major site decisions have already been made, leaving little room for a meaningful community dialogue. This reactive approach fuels community opposition, with concerns over resource consumption, land use and environmental risks leading to stalled or blocked developments.

The solution? Put community engagement at the heart of the development process. Instead of presenting fully formed plans, developers should begin by considering how a new data centre can enhance the local area. This methodology is not just about goodwill, it de-risks projects, accelerates approval timelines and builds long-term public trust.

Reframing data centre development through a ‘good neighbour’ lens means taking practical, visible steps that benefit communities from day one. Here’s how developers can do it:

1. Allocate land for green spaces – Data centres can enhance biodiversity and community engagement by dedicating a portion of their land to public use, such as parks, gardens and nature reserves. For example, a 100-hectare campus could set aside 30 hectares for walking trails, allotments, or rewilded habitats, which would transform the development into a valued community asset rather than an isolated industrial site.
2. Develop data centres as “Tech Hubs” – Instead of operating as standalone facilities, data centres can support local innovation by incorporating co-working spaces, incubators, and research labs. A campus near a mid-sized city, for instance, could attract cloud service providers, cybersecurity firms or AI research labs, creating a thriving digital hub that drives local job creation and economic growth.
3. Generate local renewable energy – By integrating renewable energy solutions, data centres can generate surplus energy to support surrounding communities. A hyperscale data centre with rooftop solar and battery storage for instance, could supply excess power to nearby homes and businesses, helping to reduce grid strain and shifting the perception from power consumer to power provider.
4. Enhance local connectivity – While data centres require high-speed fibre-optic infrastructure, local communities often do not benefit from these upgrades. Local economies stand to gain from improved fibre-optic connectivity if developers were to bridge the access gap in less built-up communities.
5. Repurpose waste heat – Excess heat from data centres can be captured and repurposed for district heating, greenhouses, or industrial processes. By integrating waste heat from data centres into municipal heating systems we can reduce our reliance on fossil fuels.

For local and regional authorities, this community-first model simplifies regulatory approval processes by demonstrating alignment with sustainability and economic development goals. In turn, this makes it easier to integrate data centres into net-zero roadmaps and smart city planning.

The future development of data centres will be partly decided by how well they integrate with the communities around them. With AI accelerating demand, these facilities can no longer exist in isolation, drawing on local resources without giving back. The industry must demonstrate its value in tangible ways, whether through repurposing waste heat, improving local infrastructure or creating green spaces. The path forward is not just about expansion; it is about proving that data centres can be a force for good.