Artificial intelligence has led to many new data centers across the United States. These facilities are large and involve major construction and investment. Local people and officials wonder whether the centers bring real benefits to their counties.
Researchers Daniel Yue and Yiyang Zeng at Georgia Tech studied how new data centers affect county economies. They combined records about facilities with county data to measure jobs, wages, business activity, household income, building permits and electricity prices.
On average the study finds small gains after a center opens: more employment, higher wages, more businesses and higher household income that grow over time. But most benefits go to metropolitan areas while rural counties see far fewer effects. The researchers advise communities to check tax abatement details, electricity tariff arrangements and who will fund infrastructure before approving centers.
Difficult words
- facility — a building that houses equipment or servicesfacilities
- county — a local area inside a state with governmentcounties
- employment — the state of having paid work or jobs
- wage — money a worker gets for their workwages
- infrastructure — basic public systems and services in a place
- investment — money spent to build or grow something
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- Do you think a new data center would help your local area? Why or why not?
- Which local costs or details would you want officials to check before approving a data center?
- How might a data center change life in a metropolitan area compared with a rural county?
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