DATA CENTERS - Revision history

Randylyon at 17:53, 24 August 2026

2026-08-24T17:53:02Z

← Older revision		Revision as of 17:53, 24 August 2026
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	Recent interest from developers has brought data center regulations to the forefront. A Florida-based real estate firm previously inquired about connecting a potential site near the [[DUBUQUE REGIONAL AIRPORT]] to city water and sewer systems. That potential project could require up to 3 million gallons of water to start operations and 250,000 gallons annually to maintain them. (12)		Recent interest from developers has brought data center regulations to the forefront. A Florida-based real estate firm previously inquired about connecting a potential site near the [[DUBUQUE REGIONAL AIRPORT]] to city water and sewer systems. That potential project could require up to 3 million gallons of water to start operations and 250,000 gallons annually to maintain them. (12)

			City of Dubuque officials plan to develop their own ordinance regulating data center development after county supervisors placed a one-year moratorium on such projects. City Manager Mike Van Milligen stated he would work with the city attorney’s office and city staff to develop a data center ordinance so it will be clear how a data center project might move forward,
			Dubuque Mayor Brad Cavanagh said, “We obviously need some sort of ordinance surrounding data centers at this point.”

			Recently, individuals looking at building a data center in Dubuque County reached out to the city about connecting to its water and sanitary sewer systems, according to Van Milligen. That kind of request is “very normal” for the city, Cavanagh said. While a potential data center would require a county zoning change, Van Milligen wrote, city staff members are “reviewing the developer’s request.”

			Debate about a data center in Dubuque County took center stage at several county meetings. After a developer approached local landowners about selling farmland near the [[DUBUQUE REGIONAL AIRPORT]], hundreds of community members turned out in opposition.

			County officials said there was no pending formal proposal or application for a data center and have not given details about the developer. The public outcry, however, prompted the county supervisors this week to halt data center development in the county with a one-year moratorium.

			However, that moratorium applies only to unincorporated areas of the county. Dubuque County Supervisor Harley Pothoff said city of Dubuque officials could move forward with developing a data center on city land under their own zoning processes if they were interested in doing so. The moratorium does not govern municipalities such as Dubuque, Cascade, Farley and others, as cities have their own zoning rules.

			Local nonprofit executive Jason Davis, who is running for a seat on the Dubuque County Board of Supervisors, said “it’s clear that there has already been a significant amount of discussion happening on this potential project.” Davis said he heard that “if the county dragged their feet, that the city would be willing to come in and annex that property,” he told the TH.

			Dubuque mayor Cavanagh said Davis’ concerns are “absolutely untrue. Talking about a data center ordinance should not be interpreted by anyone as us looking to fast-track some sort of data center development or anything like that."

			City Manager Van Milligen said the city had not received any annexation applications related to the proposed project. He stated that for annexation to be considered, the property had to be contiguous with the city limits.

			To develop a local ordinance, the mayor said he planned to look at how other cities have regulated data centers. (13)

			---

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	9. "Data Centers," Iowa Economic Development & Finance Authority Online: https://opportunityiowa.gov/business/iowa-advantage/key-industries/finance-insurance/data-centers		9. "Data Centers," Iowa Economic Development & Finance Authority Online: https://opportunityiowa.gov/business/iowa-advantage/key-industries/finance-insurance/data-centers

	10. Burwell, Grace, County Candidates Skeptical of Data Center Estimates," ''Telegraph Herald'', July 17, 2026, p. 1		10. Burwell, Grace, "County Candidates Skeptical of Data Center Estimates," ''Telegraph Herald'', July 17, 2026, p. 1

	11. Bahar, Dany and Greg Wright, "New Evidence on Data Center Employment Effects," Brookings Institute, Online: https://www.brookings.edu/articles/new-evidence-on-data-center-employment-effects/		11. Bahar, Dany and Greg Wright, "New Evidence on Data Center Employment Effects," Brookings Institute, Online: https://www.brookings.edu/articles/new-evidence-on-data-center-employment-effects/

	12. Vetter, Duane, ''Dubuque Residents Show Up in Droves for Data Center Input Session,'' KCRG Online: https://www.kcrg.com/2026/07/22/dubuque-residents-show-up-droves-data-center-input-session/		12. Vetter, Duane, ''Dubuque Residents Show Up in Droves for Data Center Input Session,'' KCRG Online: https://www.kcrg.com/2026/07/22/dubuque-residents-show-up-droves-data-center-input-session/

			13. Burwell, Grace, "'We Obviously Need Some Sort of Ordinance': City of Dubuque Plans to Regulate Data Centers," THonline: May 29, 2026,https://www.telegraphherald.com/news/tri-state/article_48ca3394-3d5e-4f2b-a5b7-dc6c5ef4f40a.html

	Appendix 1`		Appendix 1`

Randylyon at 19:30, 23 July 2026

2026-07-23T19:30:35Z

Show changes

Randylyon at 20:25, 19 July 2026

2026-07-19T20:25:07Z

Randylyon at 19:40, 19 July 2026

2026-07-19T19:40:30Z

← Older revision		Revision as of 19:40, 19 July 2026
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	Appendix 1`		Appendix 1`

	[[File:page1xyz.jpg\|400px\|thumb\|~~left~~\|Courtesy: Harvard Gazette]]		[[File:page1xyz.jpg\|400px\|thumb\|right\|Courtesy: Harvard Gazette]]

	[[File:page2xyz.jpg\|400px\|thumb\|~~right~~\|Courtesy: Harvard Gazette]]		[[File:page2xyz.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]

Randylyon at 19:39, 19 July 2026

2026-07-19T19:39:55Z

← Older revision		Revision as of 19:39, 19 July 2026
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	[[File:page1xyz.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]		[[File:page1xyz.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]

	[[File:page2xyz.jpg\|400px\|thumb\|~~left~~\|Courtesy: Harvard Gazette]]		[[File:page2xyz.jpg\|400px\|thumb\|right\|Courtesy: Harvard Gazette]]

Randylyon at 01:25, 19 July 2026

2026-07-19T01:25:37Z

← Older revision		Revision as of 01:25, 19 July 2026
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	Appendix 1`		Appendix 1`

	[[File:~~page1~~.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]		[[File:page1xyz.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]

	[[File:~~page2~~.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]		[[File:page2xyz.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]

Randylyon at 01:23, 19 July 2026

2026-07-19T01:23:48Z

← Older revision		Revision as of 01:23, 19 July 2026
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	[[File:datacenter.png\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]DATA CENTERS. In 2026 Dubuque joined the national debate centered on whether to construct a data center. Interest / concern resulted in a questionnaire mailed to each household in the community asking for input before the city council and county supervisors made a decision.		[[File:datacenter.png\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]DATA CENTERS. In 2026 Dubuque joined the national debate centered on whether to construct a data center. Interest / concern resulted in a questionnaire mailed to each household in the community asking for input before the city council and county supervisors made a decision. (Appendix 1)

	'''What is a Data Center?''' The Energy Independence and Security Act of 2007 defined a data center as "any facility that primarily contains electronic equipment used to process, store, and transmit digital information." This includes "a free-standing structure" or "a facility within a larger structure, that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment." According to IBM, data centers date back to the 1940s; the U.S. military's Electrical Numerical Integrator and Computer (ENIAC) was an early example. (1)		'''What is a Data Center?''' The Energy Independence and Security Act of 2007 defined a data center as "any facility that primarily contains electronic equipment used to process, store, and transmit digital information." This includes "a free-standing structure" or "a facility within a larger structure, that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment." According to IBM, data centers date back to the 1940s; the U.S. military's Electrical Numerical Integrator and Computer (ENIAC) was an early example. (1)
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	11. Bahar, Dany and Greg Wright, "New Evidence on Data Center Employment Effects," Brookings Institute, Online: https://www.brookings.edu/articles/new-evidence-on-data-center-employment-effects/		11. Bahar, Dany and Greg Wright, "New Evidence on Data Center Employment Effects," Brookings Institute, Online: https://www.brookings.edu/articles/new-evidence-on-data-center-employment-effects/

			Appendix 1`

			[[File:page1.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]

			[[File:page2.jpg\|400px\|thumb\|left\|Courtesy: Harvard Gazette]]

Randylyon at 01:20, 19 July 2026

2026-07-19T01:20:12Z

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	As of July 17, 2026 Dubuque County Supervisors remained skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)		As of July 17, 2026 Dubuque County Supervisors remained skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)

	A study of data center employment effects supported by the Brookings Institute found that data centers do create local jobs, with special considerations. (11) Counties that receive their first large data center see total private employment rise by 4%-5% over five to six years. Construction employment jumps 11%, and information sector employment—IT services, telecommunications, software—grows by 22%. Wages rise by 3%-4% for both existing workers and new hires, without a significant increase in home prices. At a typical treated county with 98,000 workers, these estimates imply roughly 2,000 to 4,000 additional jobs after six years, depending on facility type.		A 2026 study of data center employment effects supported by the Brookings Institute found that data centers do create local jobs, with special considerations. (11) Counties that receive their first large data center see total private employment rise by 4%-5% over five to six years. Construction employment jumps 11%, and information sector employment—IT services, telecommunications, software—grows by 22%. Wages rise by 3%-4% for both existing workers and new hires, without a significant increase in home prices. At a typical treated county with 98,000 workers, these estimates imply roughly 2,000 to 4,000 additional jobs after six years, depending on facility type.

	The most policy-relevant finding is that the employment effects depend on facility type. We classify facilities into two types: hyperscale (built by cloud and AI companies—Amazon, Google, Microsoft, Meta—to run their own workloads) and colocation (built by data center landlords—Equinix, Digital Realty, CyrusOne—who lease space to remote tenants). This distinction, absent from prior research and current policy, turns out to be critical.		The most policy-relevant finding is that the employment effects depend on facility type. We classify facilities into two types: hyperscale (built by cloud and AI companies—Amazon, Google, Microsoft, Meta—to run their own workloads) and colocation (built by data center landlords—Equinix, Digital Realty, CyrusOne—who lease space to remote tenants). This distinction, absent from prior research and current policy, turns out to be critical.
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	10. Burwell, Grace, County Candidates Skeptical of Data Center Estimates," ''Telegraph Herald'', July 17, 2026, p. 1		10. Burwell, Grace, County Candidates Skeptical of Data Center Estimates," ''Telegraph Herald'', July 17, 2026, p. 1

			11. Bahar, Dany and Greg Wright, "New Evidence on Data Center Employment Effects," Brookings Institute, Online: https://www.brookings.edu/articles/new-evidence-on-data-center-employment-effects/

Randylyon at 01:16, 19 July 2026

2026-07-19T01:16:22Z

← Older revision		Revision as of 01:16, 19 July 2026
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	A map of the United States showing Iowa -based consultant of most earthquake and blackout risks, most of which exist in the south and west of the state of Iowa.Courtesy: Iowa Economic & Finance Authority]]		A map of the United States showing Iowa -based consultant of most earthquake and blackout risks, most of which exist in the south and west of the state of Iowa.Courtesy: Iowa Economic & Finance Authority]]

	As of July 17, 2026 Dubuque County Supervisors ~~remain~~ skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)		As of July 17, 2026 Dubuque County Supervisors remained skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)

			A study of data center employment effects supported by the Brookings Institute found that data centers do create local jobs, with special considerations. (11) Counties that receive their first large data center see total private employment rise by 4%-5% over five to six years. Construction employment jumps 11%, and information sector employment—IT services, telecommunications, software—grows by 22%. Wages rise by 3%-4% for both existing workers and new hires, without a significant increase in home prices. At a typical treated county with 98,000 workers, these estimates imply roughly 2,000 to 4,000 additional jobs after six years, depending on facility type.

			The most policy-relevant finding is that the employment effects depend on facility type. We classify facilities into two types: hyperscale (built by cloud and AI companies—Amazon, Google, Microsoft, Meta—to run their own workloads) and colocation (built by data center landlords—Equinix, Digital Realty, CyrusOne—who lease space to remote tenants). This distinction, absent from prior research and current policy, turns out to be critical.

			Hyperscale counties see large information sector gains while colocation counties do not (Figure 2). A hyperscale campus creates demand for local fiber installers, network operations centers, managed service providers, and IT contractors, firms that set up nearby to serve the campus. A colocation facility leases space to remote tenants who may have no local operational presence.

			Importantly, the largest information sector gains don’t come from a single facility. Specifically, counties with a single data center see modest total employment effects but no significant information sector growth. However, counties with four or more facilities see an impressive 23% increase in information sector employment, indicating that the technology ecosystem that drives these gains takes time and scale to develop.
			Takeaways

			Communities have legitimate concerns about energy costs, water use, and environmental impact, and those concerns deserve evidence-based answers of their own. But the labor market dimension of this debate has been conducted largely without data, and our findings suggest several things policymakers should know:


			* Data centers do create local jobs, though fewer than industry advocates claim. Naive estimates that fail to account for preexisting growth trends overstate the effect by a factor of three.

			* Not all data centers are equal. The technology ecosystem effects that distinguish data centers from warehouses are concentrated in hyperscale investment. Colocation facilities generate construction activity but not the IT agglomeration that makes data centers a distinctive economic development tool.

			* Clusters generate the largest effects. Single facilities produce modest employment gains. The information sector benefits require multiple facilities in the same area.

			* Workers see modest real gains. Wages rise 3%-4% for both existing workers and new hires, with no significant effect on home prices.

			* Incentives may be poorly targeted. Overall, state incentives are small relative to private investment. In hyperscale counties, incentives represent about 2% of total construction investment. Location decisions for these facilities are driven by power availability, land, and fiber infrastructure, not by tax breaks. In colocation counties, incentives represent a much larger share of total investment (62%), meaning subsidies may matter more for precisely the facilities that generate the smallest employment benefits.

Randylyon at 00:49, 19 July 2026

2026-07-19T00:49:56Z

← Older revision		Revision as of 00:49, 19 July 2026
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	[[File:earthquakemap.png\|400px\|thumb\|left\|Low earthquake and blackout risk in Iowa. USGS Earthquake Hazard Program		[[File:earthquakemap.png\|400px\|thumb\|left\|Low earthquake and blackout risk in Iowa. USGS Earthquake Hazard Program
	A map of the United States showing Iowa ~~clear~~ of most earthquake and blackout risks, most of which exist in the south and west of the state of Iowa.Courtesy: Iowa Economic & Finance Authority]]		A map of the United States showing Iowa -based consultant of most earthquake and blackout risks, most of which exist in the south and west of the state of Iowa.Courtesy: Iowa Economic & Finance Authority]]

			As of July 17, 2026 Dubuque County Supervisors remain skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)


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	9. "Data Centers," Iowa Economic Development & Finance Authority Online: https://opportunityiowa.gov/business/iowa-advantage/key-industries/finance-insurance/data-centers		9. "Data Centers," Iowa Economic Development & Finance Authority Online: https://opportunityiowa.gov/business/iowa-advantage/key-industries/finance-insurance/data-centers

			10. Burwell, Grace, County Candidates Skeptical of Data Center Estimates," ''Telegraph Herald'', July 17, 2026, p. 1

← Older revision		Revision as of 20:25, 19 July 2026
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	The current electricity rate structure doesn’t reflect the new phenomenon of data center-driven load growth. Data centers often receive discounted energy and tax rates brokered through private negotiations and strong leverage and influence because of their size. The hopes of increasing jobs has been frequently used to get support for construction. The construction of data centers requires work because these are large construction projects, but that lasts a year or two; sometimes that labor is local and unionized, and sometimes that labor is trade professionals who come in from other states. Once the data center is up and running, it requires very few people, often just 20 to 50 staff members, because the building is not an office for software developers, product managers, or marketing experts. It is a warehouse of servers. (4)		The current electricity rate structure doesn’t reflect the new phenomenon of data center-driven load growth. Data centers often receive discounted energy and tax rates brokered through private negotiations and strong leverage and influence because of their size. The hopes of increasing jobs has been frequently used to get support for construction. The construction of data centers requires work because these are large construction projects, but that lasts a year or two; sometimes that labor is local and unionized, and sometimes that labor is trade professionals who come in from other states. Once the data center is up and running, it requires very few people, often just 20 to 50 staff members, because the building is not an office for software developers, product managers, or marketing experts. It is a warehouse of servers. (4)

	New transmission lines built to connect data centers to the massive amounts of energy they use are shared among all utility customers, leaving households and businesses with rising utility bills. In Virginia, transmission lines built for data centers cost $12 billion. New transmission lines can also jeopardize trails, riparian buffers, parks, and sometimes homes as utilities call on public and private rights-of-way and ~~utilize~~ eminent domain.		New transmission lines built to connect data centers to the massive amounts of energy they use are shared among all utility customers, leaving households and businesses with rising utility bills. In Virginia, transmission lines built for data centers cost $12 billion. New transmission lines can also jeopardize trails, riparian buffers, parks, and sometimes homes as utilities call on public and private rights-of-way and encourage the local governments to use their power of eminent domain.

	In Louisiana, Meta initially promised to pay 15 years of the capital costs of the new gas plants and some of the transmission upgrades necessary to power Hyperion. They later lowered their commitment to just four years, even though ratepayers will be paying back the costs of these investments for over 30 years.		In Louisiana, Meta initially promised to pay 15 years of the capital costs of the new gas plants and some of the transmission upgrades necessary to power Hyperion. They later lowered their commitment to just four years, even though ratepayers will be paying back the costs of these investments for over 30 years.
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	Since early 2024, more than 1,200 public actions – including zoning fights, public campaigns and temporary moratoriums – have been logged by the '''Data Center Tracker,''' a public U.S. database of community responses to data center site selection. This momentum is leading to political action. In Maine, lawmakers passed a contested bill in spring 2026 that would have imposed the nation’s first statewide moratorium on new data centers. Gov. Janet Mills later vetoed the measure on grounds that it would scuttle a $550 million conversion of the closed Androscoggin Mill in the town of Jay into a data center. Mills said, however, she supported in principle a pause in development and signed separate legislation barring state tax incentives going to data centers. She also pledged to create a council to study the industry statewide. Up to 10 other states are considering similar measures to contain their expansion. (7) On July 14, 2026 Governor Kathy Hochul of New York State signed the first statewide moratorium on new hyperscale data centers. (8)		Since early 2024, more than 1,200 public actions – including zoning fights, public campaigns and temporary moratoriums – have been logged by the '''Data Center Tracker,''' a public U.S. database of community responses to data center site selection. This momentum is leading to political action. In Maine, lawmakers passed a contested bill in spring 2026 that would have imposed the nation’s first statewide moratorium on new data centers. Gov. Janet Mills later vetoed the measure on grounds that it would scuttle a $550 million conversion of the closed Androscoggin Mill in the town of Jay into a data center. Mills said, however, she supported in principle a pause in development and signed separate legislation barring state tax incentives going to data centers. She also pledged to create a council to study the industry statewide. Up to 10 other states are considering similar measures to contain their expansion. (7) On July 14, 2026 Governor Kathy Hochul of New York State signed the first statewide moratorium on new hyperscale data centers. (8)

	'''Data Centers Development in Iowa.''' Tech leaders like Google, Facebook and Microsoft have invested billions in data centers in Iowa. Often cited as attractions Iowa offers these companies includes the state ranking 1 in the nation in wind energy as a percentage of total power output (AWEA, 2020), a stable ~~poower~~ grid, a high density of telecommunications infrastructure, the state ~~ranking~~ 18% lower construction costs than national average (NAI Global), and its rank of #2 in lowest cost of doing business in the country (Business Facilities, 2017) Iowa is in the "Safe Zone" for low earthquake and blackout risk in Iowa. (9)		'''Data Centers Development in Iowa.''' Tech leaders like Google, Facebook and Microsoft have invested billions in data centers in Iowa. Often cited as attractions Iowa offers these companies includes the state ranking #1 in the nation in wind energy as a percentage of total power output (AWEA, 2020), a stable power grid was in place, there was a high density of telecommunications infrastructure, the state ranked 18% lower construction costs than national average (NAI Global), and its rank of #2 in lowest cost of doing business in the country (Business Facilities, 2017) Iowa is in the "Safe Zone" for low earthquake and blackout risk in Iowa. (9)

	[[File:earthquakemap.png\|400px\|thumb\|left\|Low earthquake and blackout risk in Iowa. USGS Earthquake Hazard Program		[[File:earthquakemap.png\|400px\|thumb\|left\|Low earthquake and blackout risk in Iowa. USGS Earthquake Hazard Program
	A map of the United States showing Iowa ~~-based consultant of most~~ earthquake and blackout risks, most of which exist in the south and west of the state of Iowa.Courtesy: Iowa Economic & Finance Authority]]		A map of the United States showing Iowa's earthquake and blackout risks, most of which exist to the south and west of the state of Iowa. Courtesy: Iowa Economic & Finance Authority]]

	As of July 17, 2026 Dubuque County Supervisors remained skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)		As of July 17, 2026 Dubuque County Supervisors remained skeptical. A study commissioned by the [[GREATER DUBUQUE DEVELOPMENT CORPORATION]] employed an Arkansas consulting firm to evaluate the economic impact locally of a data center. The firm's numbers seemed high--a center with a $12 billion capital investment would create 400 permanent jobs, 1,000 construction jobs, generate $6.2 billion of economic impact for the county and just over $200 million in state and local taxes. These were considered a 'conservative' estimate according to Jason White, the president and CEO of GDDC. (10)

	A 2026 study of data center employment effects supported by the Brookings Institute found that data centers do create local jobs, with special considerations. (11) Counties that receive their first large data center see total private employment rise by 4%-5% over five to six years. Construction employment jumps 11%, and information sector employment—IT services, telecommunications, software—grows by 22%. Wages rise by 3%-4% for both existing workers and new hires, without a significant increase in home prices. At a typical ~~treated~~ county with 98,000 workers, these estimates imply roughly 2,000 to 4,000 additional jobs after six years, depending on facility type.		A 2026 study of data center employment effects supported by the Brookings Institute found that data centers do create local jobs, with special considerations. (11) Counties that receive their first large data center see total private employment rise by 4%-5% over five to six years. Construction employment jumps 11%, and information sector employment—IT services, telecommunications, software—grows by 22%. Wages rise by 3%-4% for both existing workers and new hires, without a significant increase in home prices. In a typical county with 98,000 workers, these estimates imply roughly 2,000 to 4,000 additional jobs after six years, depending on facility type.

	The most policy-relevant finding is that the employment effects depend on facility type. We classify facilities into two types: hyperscale (built by cloud and AI companies—Amazon, Google, Microsoft, Meta—to run their own workloads) and colocation (built by data center landlords—Equinix, Digital Realty, CyrusOne—who lease space to remote tenants). This distinction, absent from prior research and current policy, turns out to be critical.		The most policy-relevant finding is that the employment effects depend on facility type. We classify facilities into two types: hyperscale (built by cloud and AI companies—Amazon, Google, Microsoft, Meta—to run their own workloads) and colocation (built by data center landlords—Equinix, Digital Realty, CyrusOne—who lease space to remote tenants). This distinction, absent from prior research and current policy, turns out to be critical.

	Hyperscale counties see large information sector gains while colocation counties do not ~~(Figure 2)~~. A hyperscale campus creates demand for local fiber installers, network operations centers, managed service providers, and IT contractors, firms that set up nearby to serve the campus. A colocation facility leases space to remote tenants who may have no local operational presence.		Hyperscale counties see large information sector gains while colocation counties do not. A hyperscale campus creates demand for local fiber installers, network operations centers, managed service providers, and IT contractors, firms that set up nearby to serve the campus. A colocation facility leases space to remote tenants who may have no local operational presence.

	Importantly, the largest information sector gains don’t come from a single facility. Specifically, counties with a single data center see modest total employment effects but no significant information sector growth. However, counties with four or more facilities see an impressive 23% increase in information sector employment, indicating that the technology ecosystem that drives these gains takes time and scale to develop.		Importantly, the largest information sector gains don’t come from a single facility. Specifically, counties with a single data center see modest total employment effects but no significant information sector growth. However, counties with four or more facilities see an impressive 23% increase in information sector employment, indicating that the technology ecosystem that drives these gains takes time and scale to develop.
	~~Takeaways~~

	Communities have legitimate concerns about energy costs, water use, and environmental impact, and those concerns deserve evidence-based answers of their own. But the labor market dimension of this debate has been conducted largely without data, and our findings suggest several things policymakers should know:		Communities have legitimate concerns about energy costs, water use, and environmental impact, and those concerns deserve evidence-based answers of their own. But the labor market dimension of this debate has been conducted largely without data, and our findings suggest several things policymakers should know:


	* Data centers do create local jobs, though fewer than industry advocates claim. Naive estimates that fail to account for preexisting growth trends overstate the effect by a factor of three.		* Data centers do create local jobs, though fewer than industry advocates claim. Naive estimates that fail to account for preexisting growth trends overstate the effect by a factor of three.

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	* Workers see modest real gains. Wages rise 3%-4% for both existing workers and new hires, with no significant effect on home prices.		* Workers see modest real gains. Wages rise 3%-4% for both existing workers and new hires, with no significant effect on home prices.

	* Incentives may be poorly targeted. Overall, state incentives are small relative to private investment. In hyperscale counties, incentives represent about 2% of total construction investment. Location decisions for these facilities are driven by power availability, land, and fiber infrastructure, not by tax breaks. In colocation counties, incentives represent a much larger share of total investment (62%), meaning subsidies may matter more for ~~precisely~~ the facilities that generate the smallest employment benefits.		* Incentives may be poorly targeted. Overall, state incentives are small relative to private investment. In hyperscale counties, incentives represent about 2% of total construction investment. Location decisions for these facilities are driven by power availability, land, and fiber infrastructure, not by tax breaks. In colocation counties, incentives represent a much larger share of total investment (62%), meaning subsidies may matter more for the facilities that generate the smallest employment benefits.