What is developer-funded infrastructure?

Definition

Developer-funded infrastructure can include grid upgrades, water systems, roads, noise mitigation, emergency services or other capacity connected to a project. Funding can be required through approvals, fees or negotiated agreements.

The approach aims to prevent local residents from carrying costs created by a private development. Agreements should identify ownership, maintenance, cost overruns, schedules and whether the infrastructure also creates a durable public benefit.

Acronyms and aliases

developer-financed infrastructure synonymproject-funded infrastructure variant

Frequently asked questions

Why require a data center developer to fund infrastructure?

The project may create new demand for power, water, roads or services that the existing public system was not built to absorb.

What should an infrastructure funding agreement define?

It should define scope, cost, schedule, ownership, maintenance, overruns, performance and enforcement responsibilities.

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