#00234
Case study of
#00224 Negotiate community benefit agreements with numeric, measurable and independently enforceable thresholds
Implementer
City of Lancaster with the data centre developer, and a local community group
Timeline
Since Jan 1, 2026
Location
Description
One of the first substantial community benefit agreements attached to data centre development in the United States, covering three facilities totalling roughly 2 million square feet, with 300 jobs and a 20-year term. Financial terms: $20.25 million total, comprising $10 million to a community foundation, $10 million to a clean energy fund, and $250,000 for planning, plus a $10 million letter of credit that decrements $2.5 million per compliant facility. Operational terms: municipal water capped at 20,000 gallons per day per campus, with closed-loop cooling. The water cap is a specific number tied to a specific unit, and the letter of credit pays out without litigation — the two provisions that demonstrably bind. Documented weaknesses from independent legal analysis: the community group received the agreement text two days before the council vote; 'clean energy' is satisfiable with unbundled renewable energy certificates; there are no numeric decibel thresholds; there are no binding local hire percentages; expected energy consumption was not disclosed; and enforcement of remaining terms depends on a resource-constrained city being willing to sue well-resourced developers.
Metrics
5Funding
Lessons learned
Documented Jul 28, 2026