The Federation of American Scientists (FAS) has published a report aimed at helping US local authorities negotiate more effectively with developers proposing new datacentres, an area where officials often lack expertise and leverage. The guide comes amid a construction boom driven by the AI industry, which has left many councils facing complex negotiations over huge new facilities for the first time, often without adequate safeguards on tax breaks, resource use or long-term community impact.

The report, titled "Before Breaking Ground: A Local Government Guide to Better Data Center Policy and Community Benefits", reviews existing local government practices and examines Community Benefits Agreements (CBAs). It recommends that tax exemptions or incentives should not be locked in for more than five years without renegotiation, noting some US states lose over $1 billion annually to such abatements. Other guidance covers specifying energy demand and water use reporting, setting enforceable noise limits with regular testing, including dispute-resolution clauses, and requiring approved decommissioning plans before construction begins, since no datacentre has yet been formally decommissioned to test such provisions.