Digital Realty makes case that it won’t negatively impact Kokomo
This article is brought to you by the Community Foundation Serving Howard, Clinton, and Carroll Counties. We’re following the journey of generosity, from the moment a gift is made to the opportunities it creates throughout Howard, Clinton and Carroll Counties. Whether it’s supporting local nonprofits, providing scholarships, or investing in future needs, your gift has the potential to make a difference long after it’s given. Explore ways to give at cfhoward.org/ways-to-give
(Editor’s note: This is a companion piece to a larger article on the arrival of a data center project, which can be found here.)
Digital Realty wants to bring a data center to Kokomo, but the community doesn’t seem to want it. Hundreds have spoken out against the development, and on Oct. 10, they had an opportunity to meet the business face-to-face.
Uniformed sheriff’s deputies patrolled the business, but there was little reason to need security. More than 100 residents attended the open house, yet only a few made any performative display of anger or frustration. They were much more interested in learning more about the project and raising concerns.
Matt Gully, Director of Public Affairs for Digital Realty, spoke with the Lantern during the company’s open house. The company has been in operation for more than 20 years, maintaining 360 data centers around the world.
“We’re not a newcomer,” said Gully. “We’ve been doing this responsibly, and we’re trying our best to engage communities where we operate and engage with them early.”
He confirmed the plan to construct three buildings on 470 acres, comprising 3 million square feet of space. That data center complex will consume up to 1.5 gigawatts of electricity annually to provide computing capacity for a future portfolio of clients.
He also proposed that as many as 5,000 construction jobs will be created over the six-year construction phases. Once complete, the Kokomo data center should generate more than 250 jobs, Gully claimed, from security and janitors to maintenance and electrical engineers. Because the wage demands for that range of positions is considerable, he could not give an average compensation rate, stating only that they all would be “good-paying jobs.”
That generosity should spread into the community, Gully said, as the company looks for ways to give back.
“We’re looking to make investments that identify needs that the community may see,” said Gully. “We’re talking workforce development, education, meeting social needs, those sorts of things. We’re not here to just simply write a check and leave. We’re looking to invest in the community.
“So, as we proceed through this process, we’ll want to have these conversations to figure out what those programs are and how we can work together to create something that’s meaningful or beneficial.
“We’ve been able to prove that we’re good neighbors, and we’re responsive to the community. Ultimately, we have clients, and we want to be responsible so we can stay operating. If we’re unable to deliver on what we’re promising, then we’re unable to operate.”
Being a good neighbor is at the top of the minds of Kokomo residents. Horror stories of data centers depleting natural resources and gobbling up land and power to the detriment of a community run rampant across the internet. They were looking for answers, and Digital Realty tried to give them.
Water consumption is a primary concern, as residents have heard of drought and dry wells in the wake of a data center’s development. Gully claimed Kokomo will not suffer that fate.
“This is a closed loop system,” said Gully. “So, what that means is we fill it once. That water recirculates for 15 to 20 years, so we’re not continually pulling on the water. It’s a one-time fill. There’s, of course, maintenance that has to be done periodically as with any system, but that water is captured off-site and then put back into the closed-loop system.”
Electricity is an equally pressing concern for residents, as many have consumed articles detailing exorbitant rate increases and even brownouts as a result of a data center’s voracious appetite for power. Again, Gully sought to minimize these concerns in Kokomo.
“We’re working closely with Duke Energy to ensure that the capacity is there,” said Gully. “It will be phased in over a period of several years, but what’s important there is we’re paying for the infrastructure upgrades. And we’re paying a higher rate as part of a large load tariff. Those two things combined will help ensure that consumers are protected against rate increases due to our products.”
When specifically asked if Digital Realty will be paying to offset any electricity rate increases to area residents caused by the company’s consumption, Gully was careful not to confirm the community would be spared rate hikes.
“What I’m saying is infrastructure that will be required to come into our site, we’re paying for that,” said Gully. “And then there’s a tariff that new users, large users over a certain megawatt, pay.”
Gully was similarly non-committal about the level of sound that will emanate from the proposed data center. Specifically, he was unaware of the hertz (frequency) range that will be produced. He was only certain that the decibel (loudness) level will comply with the local ordinance.
“I think we’re still very early in the process to be able to give a definitive answer,” said Gully. “What I can say, though, is that we do sound studies at the beginning of our projects. We do it in the middle of projects. We do it when we’re finished, and then when it’s commissioned. So we’ll be able to understand what the existing noise sound looks like, and then what it looks like as we’re operating, and if we need to make adjustments, we will.”
Gully suggested that sound mitigating structures, such as baffles, berms, and landscaping walls will be employed to limit impact on the surrounding properties.
As for the additional rezoning that went before the plan commission on Oct. 13, Gully stated that Digital Realty currently is only concerned with the originally identified area. He did not confirm any plans for expansion. After all, there are no companies currently attached to the computing power the data center should generate. The Kokomo development is a “spec build,” and the company will try to lease its capacity.