With tax day as a backdrop, the Institute for Local Self-Reliance (ILSR) Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA) convened its quarterly Building for Digital Equity (B4DE) livestream yesterday that shined a light on how public dollars and tax policy intersect with digital equity.

The event – an ongoing series sponsored by UTOPIA Fiber – brought together community organizers, policy experts, and local government leaders on the frontlines of working to expand opportunities for those being left in the digital dust.

What set yesterday's B4DE apart was its featured focus on how the emergence of AI hyperscale data centers are impacting communities and how communities can fight for a better deal.

The Data Center Boom — and Its Costs

MediaJustice Senior Campaign Lead Brandon Forester and Jordana Barton-García, Connect Humanity Director of the Texas Rio Grande Valley Broadband Coalition, heated up the afternoon’s fireside chat with an unflinching look at the rapid expansion of AI infrastructure.

Forester was direct about what's really driving the surge: “The only idea they have left is scale” and warned that data center developers often arrive in communities – particularly in the South –  promising economic benefits that rarely deliver. “They just need your space, they need your resources, and they need you just to let them do what they want to do,” he said.

Forester pushed back on the idea that data centers generate meaningful local tax revenue, noting how in Prince George's County, Maryland, where he lives, the projected annual return from a single data center amounts to roughly $6 million after state tax breaks, which are a fraction of what communities are led to expect.

Barton-García emphasized how communities have more power than they realize – but only if they act early. Her core message: get to the negotiating table before the deal is done.

As Americans file their taxes this Tax Day, digital equity leaders across the nation will gather for a timely exploration of how public dollars are being used to strengthen communities – and how local advocates can negotiate better deals as AI data centers rapidly expand, lured with tax breaks.

Co-hosted by the Institute for Local Self-Reliance Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA), the next Building for Digital Equity (B4DE) livestream promises to offer insights from frontline forces working to ensure broadband and technology investments serve public needs rather than distant corporate interests.

With the series sponsored by UTOPIA Fiber, the upcoming B4DE livestream – “Local Dollars, Local Solutions: Digital Equity Tax Money & How to Negotiate Better AI Data Center Deals” – is slated for April 15 at 3 p.m. ET and will bring together national policy experts, local leaders, and community advocates working in the trenches of digital inclusion.

Registration is now open here.

“Tax day should serve as a reminder that public money should work for the public,” organizers said. 

“Communities are asking how to use their tax dollars to expand access to the Internet, digital skills, and devices – and how to effectively negotiate, or in some cases, stop data center developers from harming or extracting wealth from cities and towns without public benefit.”

The agenda for the free event will include a brief framing conversation before kicking things off with a creative segment highlighting the power of artistic collaboration and community storytelling, underscoring how digital access supports cultural expression and civic life.

Conway is right in the middle – in the middle of Arkansas with its utility company, Conway Corp, in the middle of beefing up its broadband network.

In this city of 66,000 – home to the information technology company Acxiom Corporation and three colleges – residents and businesses have long relied on Conway Corp for more than just electricity since the utility first launched its cable and Internet service in 1997.

Conway Corp, which has been Conway’s electric utility for the past 90 years, has a unique relationship with the city’s government. “We are different in the way we are set up as compared to many other municipal networks. We are set up as a non-profit. We lease the network and operate it on behalf of the city,” explained Conway Corp Chief Marketing Officer Crystal Kemp.

At the heart of the utility’s network management has been the on-going work to stay ahead of the curve.

Prepared for the Pandemic

“When we launched Internet services in 1997, upstream capacity wasn’t a concern and systems were built with the average homes (and) businesses per geographic area, or node, at 500. Today those numbers are less than 95 per node. That’s been achieved through physical changes in the network and changes in our engineering practices,” Conway Corp’s Chief Technology Officer Jason Hansen told us last week. 

Upgrades to the Hybrid-Fiber-Coax (HFC) network began to take shape in 2019 with the deployment of DOCSIS 3.1, allowing Conway Corp to double its downstream capacity. They also began upgrading equipment that paved the way for expanded use of the RF (Radio Frequency) spectrum to boost the network’s bandwidth. As of December 2020, about 50 percent of the upstream upgrade work had been completed with the remainder expected to be finished by the summer of 2021.

OnLight Aurora, the nonprofit ISP serving Aurora, Illinois via publicly owned infrastructure, is bringing more companies to the second largest city in the state.

"One Of The Reasons We're Here"

Scientel Solutions, a wireless communications company with headquarters in Lombard, Illinois, is making a move to Aurora. The company plans to build its own 12,000 square foot office building and an accompanying warehouse in the community where they will be near a local data center.

The data Cyrus One data center was only one reason Scientel chose Aurora, according to the company’s attorney Richard Williams:

“In addition to being near Cyrus One, Williams told aldermen the company also was lured by OnLight Aurora, the city's fiber optic network.” 

"Fiber was a big attraction to us," Williams said. "That's one of the reasons we're here."

Rather than continue to lease its Lombard location, the company has decided to invest in its own property. In addition to constructing the facilities, Scientel will erect a communications tower on its new site. Lombard is approximately 25 miles east of Aurora, closer to downtown Chicago.

Scientel will bring 30 Lombard employees to Aurora and hire 20 more employees to work at the new headquarters.

Unexpected Benefits

Back in 1995, city leadership decided to invest in publicly owned infrastructure to reduce telecommunications costs, upgrade to a faster network, and obtain the reliability they couldn’t get from incumbents. At the time, the city used patchwork of different connections and while some facilities obtained adequate connectivity, others in the more far-reaching areas of the community depended on old leased lines that weren’t up to task. Employees in some offices traveled to offices where connectivity was better in order to complete specific tasks that required better connections.

In Traverse City, Michigan, big plans are underway. The local electric utility is considering constructing a Fiber-to-the-Home (FTTH) network for next-generation high-speed Internet access.

About 10,000 people call the "Cherry Capital of the World" home. The area primarily relies on tourism and high-speed Internet access can help diversify the local economy. At the moment, Traverse City Light & Power (TCLP) is holding planning meetings with community stakeholders to discuss how to build a network to meet the needs of the community.

An Opportunity for Connectivity

The city has been mulling over the possibility of general connectivity for a while - especially citywide Wi-Fi. In 2007, TCLP had just finished installing fiber optic cables to connect electrical substations. They leased some lines to large nonprofit institutions, such as school systems and health facilities, but they still had spare capacity. TCLP realized that they had the potential to expand to residents.

They partnered with the Downtown Development Authority to create a downtown Wi-Fi zone in 2014. The zone automated parking meters and connected tourists, but the Wi-Fi's technological limitations, such as signal strength, soon became apparent. TCLP concluded that citywide Wi-Fi would not be the best option for Traverse City.

Now community leaders are considering using existing fiber, which is already planted throughout the community. TCLP, city and county officials, and other stakeholders have discussed how to develop fiber assets for a FTTH network. The city has several options: a phased approach (connecting the city section by section), a pre-subscriber approach (connecting neighborhoods where people pre-subscribe in great number), an incremental build (slow and steady), or an immediate citywide build (all at once). They also still have to figure out exactly how to cover the costs. 

Economic Development and Community Vitality