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.
ELI5
Developer-funded infrastructure is shared or public infrastructure paid for partly or fully by the company whose project creates the need. It can include power upgrades, water systems, roads, noise controls or emergency services.
For example, a new data center may pay for a substation upgrade instead of leaving local electricity customers to cover the added capacity. The agreement should identify who owns and maintains the work, who pays overruns and when the infrastructure must be ready.
