Data Centers: Balancing Economic Benefits and Resource Demands

Data centers are increasingly sought after for their potential to boost local economies through tax revenue and high-paying jobs. However, they can also place significant demands on local energy and water resources and require substantial infrastructure.

For chambers of commerce and economic development organizations, understanding these tradeoffs is important when evaluating data center development. This overview defines the types of data centers, explores their economic benefits and infrastructure challenges, and examines the public policy considerations, including the growing debate over tax incentives.