Digital infrastructure is expanding rapidly, and data center projects continue to track that momentum, but Compass Datacenters CEO Chris Crosby cautions that growth is running into real-world infrastructure and community constraints. Speaking on the July 1 Walker Webcast with host Willy Walker of Walker & Dunlop, Crosby said the current development environment requires data center builders to focus as much on infrastructure readiness, policy engagement and neighborhood relationships as on land and capital.
Crosby framed data center developers as long-term neighbors whose facilities can remain in place for generations. He argued that this longevity creates a responsibility to secure and maintain a “social license” with host communities by addressing concerns early in the process and managing impacts thoughtfully over the life of a project.
On the infrastructure side, Crosby pushed back on two of the most common community worries: water use for cooling and grid strain from power demand. He said Compass Datacenters has made a deliberate choice not to use water for cooling, despite the cost advantage of evaporative systems. Instead, he noted that Class A developers are increasingly relying on technologies such as dry-cold chillers and refrigerants. According to Crosby, evaporative cooling remains in use by some newer entrants and certain large hyperscale users, but he does not view it as the industry norm among top-tier developers.
Turning to the power grid, Crosby suggested that anxiety over data centers overwhelming electric systems reflects decades of underinvestment in grid infrastructure rather than an inherent flaw in the asset class. He argued that data centers can function as flexible resources for local grids because they are typically built with substantial backup power. In his view, channeling a portion of data center capital budgets into grid and transmission upgrades can be both commercially rational and beneficial for surrounding communities.
The webcast also highlighted how community relations shape project feasibility. Crosby said developers have an obligation to communicate openly about both benefits and impacts, and to respond when residents identify needs, such as local facilities that data center sponsors may be able to fund. At the same time, he encouraged municipalities to move away from blanket moratoriums and instead set clear conditions, boundaries and performance standards that allow qualified developers to proceed while screening out those unable to meet higher expectations.
Looking ahead, Crosby predicted that the next phase of data center expansion will hinge less on construction speed and more on education, transparency and alignment with community and infrastructure stakeholders. With demand for digital infrastructure still rising, he said industry participants must lead with openness about how facilities are designed, cooled and powered, and about how they fit into the long-term fabric of the communities where they operate.
