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BFD Expert Voices - Climate Deals

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Within the complex process of building data centers, community engagement is the No. 1 issue, says Tag Greason, the co-CEO of Blackstone-owned data center developer QTS. 

Why it matters: Local backlash is a real threat to the AI boom. 

What they're saying: QTS has decades of experience securing power, developing supply chains and building data centers, but community engagement "is a new muscle for all of us," says Greason, who previously was a member of the Virginia House of Delegates.

Greason argues that the data center industry needs to do more for communities and do better, not just have a philosophy of doing no harm. 

Instead of pledging just to not raise electricity rates, QTS is also striving to actually reduce utility rates in the years to come, says Greason. 

"If we do it in a way where people realize it at the kitchen table, then I think we will be successful as an industry and not be the punching bag of the industry and the marketplace that we are right now," says Greason. 

Zoom in: It's also important that if a data center is not a good fit with a community, "we should move on," says Greason. 

"The worst thing we can do is barrel our way into there," he says.

State of play: Residents and local leaders are increasingly pushing back against new data center construction due to concerns over rising electricity rates, water usage and noise. 

Last month, Maine's Legislature approved an 18-month moratorium on new data center construction — the first state in the country — but the governor ended up vetoing it because it didn't include an exemption for a project in a distressed mill town.

A record 20 proposed data center projects were canceled after local opposition in the first three months of 2026, according to Heatmap Pro, That represents $41.7 billion in investment and 3.5 gigawatts of electricity demand.

Catch up quick: Founded in 2003, Stirling, Virginia-based QTS sells to customers like hyperscalers and has 90 data centers operating or under construction across the U.S. and Europe.

Blackstone acquired the firm in 2021, taking it private, and Greason says the infrastructure and real estate funds that hold QTS are perpetual funds providing "patient capital," compared to the public markets.

By the numbers: While Greason wouldn't comment on future fundraising, he says: "The scale of our capital needs five years ago has grown 35 times in the five years that we've been with the Blackstone team. I would expect that trajectory continues up and to the right over the next five years or more."

QTS co-CEO says community engagement is top issue

Local backlash is a real threat to the AI boom.

Illustration of a data center server in the shape of an upward arrow.

Within the complex process of building data centers, community engagement is the No. 1 issue, says Tag Greason, the co-CEO of Blackstone-owned data center developer QTS. Why it matters: Local backlash is a real threat to the AI boom.

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QTS co-CEO says community engagement is top issue

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