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Managing Your Reputation Amidst The Data Center Boom

Ed Moed
January 22, 2025

The data center industry is experiencing enormous growth, mainly due to the demand generated by the AI boom. However, this growth has also led to increased scrutiny of data centers and their vendors.  

Enormous energy demands, fear from many communities over data centers being built in their communities, rising energy costs, and a range of other issues are causing concern and generating sensationalistic stories in the media, which fuel a lot of online chatter.

As the industry prepares for significant opportunities in 2025, it must also navigate challenges that pose potential reputational risks. To succeed in this dynamic environment, both operators and vendors need to understand and implement several communication strategies to maximize success:

 

A singular issue can build into widespread public fear in the blink of an eye

We’ve seen it happen time and time again in areas where technology and energy intersect. Most consumers don’t understand why data centers are moving into their communities, and companies can’t expect them to comprehend the scope of the types of energy being used and the implications of those demands. It’s essential to stay ahead of these broader issues, plan for the unexpected, and develop effective communication strategies to proactively educate consumers about what is happening in their neighborhoods.

Sometimes, you need to meet them in their backyard to build trust

This naturally builds on point number one: all politics are local, and all communities consist of groups of engaged, communicative people who can either support various issues that affect them or raise genuine concerns. The most effective and practical way to establish credibility and trust is to engage with people in their communities. Demonstrate that you care for consumers and explain and educate them about what it means to have a data center built nearby.

 

Articulating a clear and concise value proposition is critical with so much noise and confusion

For many emerging vendors and tech providers aiming to establish partnerships with data center operators or grow within the broader industry, the current noise and confusion present considerable challenges. Before entering the market, it's essential to fully understand your company’s true value proposition and how to articulate it in a way that resonates with your target audience. Many companies overlook this important exercise.  

 

Thought leadership wins this battle, not self-serving, overly commercial sales tactics

Having a smart and resilient sales team is vital for revenue growth. But those companies that prioritize only commercial messages over creating and communicating thought leadership on issues that impact their customers often fall short. We recommend leveraging social media channels, media, and conference networking events to address the challenges prospects care about. This approach will go a long way toward establishing credibility and directly/indirectly impact sales.

 

Create real relationships with media and influencers versus transactional one-offs

It’s essential to adopt a mindset of building long-term, value-added relationships with those in this space, rather than engaging in one-off, transactional interactions that fail to yield further benefits. Whether you’re working with media, influencers, partners, or others within this ecosystem, consider how you can provide value to them; creating lasting benefits is far more rewarding.