> Data centers cannot just use any kind of water either; it has to be clean enough to ensure the equipment and pipes are not damaged. Tapping into public drinking water is both easier and cheaper than paying the cost of treatment themselves. That means data centers end up competing with communities over their potable water supply.
So provide tiered pricing for these larger consumers that would offset the additional pressure on existing infrastructure. If the infrastructure doesn't exist -- allow these datacenter companies to invest and build out the infrastructure that would also benefit other customers in that water district.
When industry is negotiating with local government to open a facility, often one of the stipulations is that the facility will pay no more than local residents for access to utilities (in fact, the industry may even demand a lower, privileged rate). If the local government did what you suggested, the industry would just go elsewhere. Modern industries are overall not very interested in paying more in order to build out infrastructure to benefit the community beyond their own site.
What is the issue here? Local populations don't want to use their communities to satiate the greed of a multi trillion dollar corporation.
They can afford to pay whatever the rates, they just want the public to give them more corporate welfare so they can get greedier while inflicting a surveillance state upon the masses.
The issue is that even if one community puts up resistance, the corporation will eventually find some other local government that plays ball. In the end, someone or another still gets screwed.
Makes sense.