Compass Datacenters CEO: Politicians Should Ask Industry For More

As people around the globe use artificial intelligence at record rates, the demand for data centers is on the rise. But not everyone is eager to see them built in their communities. 

From concerns about water and power consumption to fears that these facilities will industrialize residential and rural communities and disrupt day-to-day life, pushback against data centers has been growing. But how valid are these concerns? According to Chris Crosby, founder and CEO of Compass Datacenters, many people may be looking at these facilities from the wrong perspective. 

“In the 1970s when all of the international airports were being built, there were communities that just said, ‘No, we don’t want it,’” he said to Walker & Dunlop CEO Willy Walker on this week’s Walker Webcast. “And it really hurt their community. I don't think that data centers are anywhere close to the environmental impact that an airport has in terms of noise pollution and the types of things that occur.” 

Walker and Crosby sat down on July 1 for a live discussion about some of the most common misconceptions about data centers and how Compass Datacenters is working to change them through the unique way it builds and operates its facilities. 

Crosby comes from a telecom background, an industry that had peak demand at one point and then watched it tumble. Walker asked if he sees any signs that the same type of bubble could be going on in the data center space. 

“For the revenue-producing [aspects], which is AI inference and the cloud and the like, absolutely not. You can’t get enough [centers],” Crosby said. 

Compass refers to itself as a “100-year neighbor” in the communities where it builds, and as a result, it works hard to avoid cutting corners. Crosby said he views data centers as long-term investments, which is why he uses a 40-year underwriting model that is “built to last” instead of “built to exit,” and he takes great care with each build. 

“If you're going to be somewhere for 100 years … you better do it well,” he said. 

Crosby started Compass Datacenters in 2011 to focus on greenfield projects and deliver customizable, scalable, sustainable and low-cost data centers in an expedited time frame. 

Compass has grown from completing its first 1.2-megawatt data center in 2012 to serving the hyperscale market today, with developments underway around the world. 

Crosby said a lot of the pushback around data centers is the result of people making assumptions that are inaccurate, especially about his facilities. For example, he regularly gets asked, “Are you going to agree to stop using water?” when, in fact, Compass data centers have never used water. 

“I grew up in Texas, I know water is a precious resource,” he said. “I've lived with droughts my whole life. So, as a decision for us to be able to build anywhere that we wanted to build, we've always made water something that we don't use.” 

While water is by far the cheapest way to cool data centers, Compass relies on other methods, including a refrigerant-based system. Given that water usage is a top reason why people are wary of data centers, Compass’ approach is a way to alleviate this common concern. 

Another top claim is that data centers overwhelm local power grids. To Crosby, the solution to that is simple: Let data centers come off the grid and become a flexible resource, a goal he has been working on with the Electric Power Research Institute and the White House’s National Energy Dominance Council. He said if grid operators could contact data centers and tell them to go off the grid and run their generators to provide their own power during a crisis, it would have several positive outcomes. 

“It's going to take those peak time frames when people were getting hosed on their power bill, because all of a sudden their power bill spiked, and that's going to go way down,” he said. “It's going to smooth out that curve, and that's where data centers can be a good resource. They shouldn't be a negative. They should be a positive.” 

Crosby stressed that Compass wants to be a real part of the communities it operates in, to be a long-term job creator and boost investment and growth. 

This is why he is calling on politicians who are concerned about data centers coming to their districts to simply ask for more from the industry: Don’t let them build right out to the property line, demand they lower their noise levels and tell them they can’t use water, Crosby said. 

By doing so, data centers and local leaders can make a positive impact together, he said 

“There are basic things that can get done that seem so common sense, and for whatever reason, whether it's the right or the left, right now, common sense just isn't that common,” Crosby said. “We as an industry have the ability to make so much impact and transform the [local] economies, the job markets.”

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This article was produced in collaboration between Walker & Dunlop and Studio B. Bisnow news staff was not involved in the production of this content.

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