The Data Center Boom Is Bringing Investment But Who Really Benefits?

TABLE OF CONTENTS

1. The Growth In Data Centers Is Reaching Communities
2. The Potential Data Center Advantages For Local Economies
3. The Impact On Communities Isn’t Always Positive
4. So, Who Actually Benefits From A New Data Center?
5. How Communities Can Evaluate Whether A Data Center Deal Is Worth It
6. Frequently Asked Questions (FAQs)

Many data centers have been or are being built, but the industry still can’t keep up with the world’s insatiable demand for cloud computing and artificial intelligence. There are now more than 12,250 data centers across the world, with just under half within the United States, according to estimates from Data Center Map. Overall, data center capacity is expected to increase over the next four years, rising from 103 gigawatts (GW) to 200GW by 2030, according to an analysis by JLL Inc. This accelerating build-out is stirring up concerns within communities about their potential adverse impacts on electric power, water supply and the surrounding environment.

Community resistance may slow the pace of development. The challenge is balancing the tradeoffs between the benefits data centers offer with these negative effects. Benefits to communities and businesses are wide-ranging, including a larger tax base, increased employment and stepped-up overall economic activity.

The Growth In Data Centers Is Reaching Communities

There are many data centers planned for construction and expansion in North America alone, to the tune of more than 66 gigawatts of capacity planned or now under development, which, to put this in perspective, would amount to an electricity requirement greater than Germany, according to the JLL report.

In the U.S., 42% of Americans live within five miles of at least one operational data center or live near a planned data center, according to data from Pew Research. The largest concentrations are within Virginia (especially Loudoun County in the northern part of the state), Texas and California.