Data centers cost billions to build, requiring complex financing from banks, institutional investors, and insurance companies. Before committing money, these financial institutions assess project risks—including regulatory problems, community opposition, and what’s called “social license to operate.” Environmental, Social, and Governance (ESG) considerations have become part of many investment decisions, creating new pressure points that didn’t exist a decade ago.
This matters because documented community opposition directly affects investment risk. Credit rating agencies evaluate project risk; insurance companies assess liability; ESG-focused investors scrutinize environmental and social conflicts. When communities generate sustained opposition, file permit challenges, document environmental concerns, and attract negative media coverage, they’re creating quantifiable risk factors that affect financing costs. Projects have been delayed, restructured, or abandoned when financial partners became concerned about controversy.
Communities can identify and target lead financial partners, file detailed investor engagement letters citing ESG conflicts, present social license risk to credit rating agencies, and generate financial media coverage of project controversies. Coordinating with shareholder activists who can raise concerns at investor annual meetings has also proven effective. Developers need to close financing before controversy escalates—which means early, organized opposition can make their deals much harder to complete.
Key Targets
- Lead bankers and institutional investors: Financial institutions structuring and funding projects
- ESG funds and responsible investment advocates: Asset managers with environmental and social mandates
- Credit rating agencies: Firms assessing project risk and creditworthiness
- Insurance underwriters: Companies providing liability and property coverage
- Investment committees and boards: Decision-makers at banks and institutional investors
Possible Interventions
- Challenge Financial Model Assumptions: File detailed critiques exposing unrealistic revenue projections, understated operating costs, and unaccounted regulatory risks
- ESG and Responsible Investment Campaigns: Target investors and banks with documented environmental, social, and governance concerns that conflict with ESG commitments
- Insurance Market Pressure: Document community opposition and environmental risks to increase perceived liability exposure and insurance costs
- Quantify Legal and Compliance Exposure: Present analysis of pending litigation, permit challenges, and regulatory risks that affect project financial viability
- Investor Reputation Campaigns: Generate media and social pressure highlighting investor role in controversial project, targeting ESG-conscious institutions
Gateway Intervention
Campaign Playbook
Each campaign will have it’s own unique challenges and context. We are here to help talk through steps. The steps in this guide are informed by community victories so we aren’t reinventing the wheel. Contact us to talk about your campaign.
1. Investor Identification & Analysis:
Research project sponsors and their financial partners. Identify lead banks and institutional investors. Review investor ESG policies and commitments. Engage financial analysts to review project economics.
2. Financial & ESG Challenge:
Commission independent financial analysis. File investor engagement letters citing ESG conflicts. Present social license risk to credit rating agencies. Document community opposition for insurance underwriters.
3. Pressure Campaign & Media:
Execute targeted investor reputation campaigns. Generate financial media coverage of project risks. Coordinate with shareholder activists. Present at investor annual meetings if possible.
Valuable Allies
You don’t need to take on bad data centers alone. There are organizations and experts who can help. Explore the directory to find other leaders, and discover organizations in the Alliance Map.
Financial Analysts: Provide credible critiques of project economics
ESG Advocates: Pressure investors on environmental and social conflicts
Environmental Scientists: Conduct comprehensive impact assessments
Shareholders: Engage investors through governance channels
Insurance Experts: Document liability exposure and risk factors
Gateway 5: Financial Structuring & Credit Approvals
Resources & Documents
Essential tools and resource for this gateway.
