A developer wants to build a new data center in your community. What should you think?
Based on my review of the literature, here are the pros and cons:
- WATER IMPACTS: The most modern data centers are not really prolific users of water. These concerns are overblown.
- NOISE: They do create levels of noise that are somewhat incompatible with rural environments.
- ELECTRICITY BILLS: It depends. Are the developers providing their own power? If not, what is the state of the grid, and how do the developers plan to offset their impacts? Can you trust the local utility company to protect your interests, or is it solely concerned with maximizing its profits? The answers to these questions will vary from jurisdiction to jurisdiction.
- SCALE: These projects are absolutely massive. They don’t typically fit in industrial parks, so they have to go in rural areas. Their scale will be inconsistent with the character of your community.
- JOBS: The data center will create a small number of permanent jobs. The big impact will be a temporary one to the construction industry. If your community has lots of underemployed trade workers, this project will be of great benefit to them. If it doesn’t, you may find that more valuable developments will be delayed if the data center is built.
- TAX REVENUES: The data center will increase your tax base, probably significantly, unless your state or local government has agreed to subsidize it.
The bottom line here is that each community is different, and the balance between undesirable impacts and economic benefits will vary from area to area. As a general rule, however, it is a mistake to either subsidize the data center or rely on the utility company to keep your bills down. Make sure to read the fine print on electricity costs before you make up your mind.