Data Centers - An Essential Service with Big Community Benefits

Much like our essential water, power, and transportation systems, data centers have become integral to the critical digital infrastructure essential in our daily lives. Every time we use our phones, stream entertainment, make debit card transactions, or sign up for a telemedicine appointment, we’re relying on secure, reliable and speedy data transmission enabled by data centers. Put simply, nearly everything we consume or experience daily ties back to a data center’s operation.

As data consumption continues to surge -- further fueled by the artificial intelligence boom – new data centers are needed to keep pace with the escalating demand. This is leading to a major increase in vital data center development across the country. 

As communities assess the introduction of these new neighbors, it's good to be aware of the many benefits data centers can bring to a community. Among these are:  

Creates New Jobs. Data centers bring numerous and high paying jobs as they require a skilled workforce for construction, operation and maintenance. According to a report from the U.S. Census Bureau, employment in U.S. data centers increased more than 60% nationally from 2016 to 2023. Some of the jobs impacted include data center technicians, utility tradespersons, building maintenance, equipment repair, and security. 

Boosts Local Tax Revenues. Data centers bring new sources of funding to local governments through increased tax revenues. For example, a recent article in Building Indiana states, “a $1 billion data center could generate upward of $200 million in total tax revenues over a 10-year period.” These new funds are often used to advance other community focused projects.

Drives Community Improvements. The tax revenue windfall from data centers has generated substantial funding for a variety of community projects nationwide. These have included public education enhancements, public health initiatives, new roads and other capital improvement programs, and parks and recreation amenities.

Enhances Local Infrastructure. Data center construction can bring faster internet speeds, greater fiber connectivity and other infrastructure improvements that benefit residents,  businesses and data centers alike. This strengthens the area's technological foundation, ensuring it stays competitive and capable of supporting future growth.  

Brings New Education and Training Opportunities. In communities throughout the country, data center developers are partnering with local schools to create educational opportunities for future workers. Often, these programs focus on science, technology, engineering and math (STEM) areas for local high school or college students. Some provide scholarships and training to people with no previous tech experience interested in pursuing data center careers.

Invigorates Business Community. Job creation boosted by data centers drives economic vitality in the local business community, with ripple effects leading to increased spending in restaurants, shops and other local businesses. In addition, a data center’s presence can be a magnet to other tech companies to set up operations nearby, further stimulating economic development.

Increases Sustainability Initiatives. Data center operators around the country are implementing programs to reduce their carbon footprint and enhance sustainability. Facility construction is also creating greater interest in renewable energy development, which benefits communities through increased availability of alternative energy sources, such as solar and wind.