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CHRIS JOHNSON: The data center boom is rescuing forgotten American towns
With the midterm elections approaching, data centers have become an increasingly popular political target. Politicians are raising alarms about their impact on communities, with some calling for construction moratoriums or outright bans.
There's been plenty of fearmongering. But, the more Americans learn about data centers, and the more communities experience their benefits firsthand, the stronger the case for continued development becomes.
Data centers have existed for decades, but the rapid growth of artificial intelligence has dramatically increased the demand for computing power. Americans understandably have questions about what this development means for electricity prices, water supplies, and their quality of life. Newer facilities are increasingly being designed with technologies that can address these concerns, including closed-loop cooling systems and quieter operations.
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Yet much of the national debate overlooks what data centers are already delivering to communities across America.
Take Ellendale, North Dakota, a town of 1,100 people. Before Applied Digital's new $11 billion data center development, the town collected roughly $400,000 annually in sales taxes. In the first seven months of 2026 alone, that figure jumped to $3.5 million.
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That revenue is helping the city repave its roads and renovate its senior center. A historic opera house is being restored. For a small town, this kind of investment can transform the community for generations.
And Ellendale is far from alone.
Schools across America are seeing enormous benefits from the data center boom.
In Richland Parish, Louisiana, Meta's massive investment has helped fund an increase in annual teacher bonuses ranging from $10,000 to $50,000.
Think about what that means for a working family. Teachers who have dedicated their careers to educating children are receiving a life-changing financial benefit, while the school district becomes an attractive destination for talented educators.
It's hard to imagine a politician campaigning against higher teacher pay or better schools. Yet those are precisely the kinds of benefits communities stand to lose when development gets blocked.
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The benefits extend to homeowners struggling with the rising cost of living.
In Loudoun County, Virginia, data centers generate 45 percent of county revenue. That enormous tax base has allowed local officials to cut homeowner property tax rates every year for a decade.
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In neighboring Henrico County, local leaders used data center revenue to fund a $60 million Affordable Housing Trust Fund, helping young families and first-time buyers purchase homes.
At a time when housing affordability is dominating political conversations, building data centers is helping some communities make the American Dream a little easier to achieve.
Electricity prices are another major concern, and understandably so. Families are already struggling with higher utility bills, and the arrival of a major new industrial customer can raise legitimate questions about who pays for new infrastructure.
But the enormous, predictable electricity demand from data centers also creates opportunities to finance new generation and grid investments, spreading infrastructure costs across a larger customer base.
In Georgia, agreements involving new large electricity customers, including OpenAI, are projected to lower residential power bills by $180 annually by 2029.
With the right arrangements in place, the arrival of data centers can mean lower costs for the families already living in these communities.
And the benefits extend well beyond tax revenue and household expenses.
Trade unions have been among the most vocal supporters of data centers because of the good-paying jobs they create. Building these facilities requires years of work for skilled tradesmen, with new projects creating opportunities for the next generation of American workers.
In Baltimore, Maryland, IBEW Local 24 expanded its membership by 50 percent alongside data center construction. In Luzerne County, Pennsylvania, IBEW Local 163 doubled its ranks following construction of an Amazon data center.
Politicians have spent decades promising to bring back good-paying blue-collar jobs. Here is an industry creating enormous demand for exactly those workers.
Of course, developers have a responsibility to work with residents and local governments to address legitimate concerns. Communities deserve clear answers about electricity costs and water use. They should also understand how the investments taking place in their backyards will benefit local families.
But, when data centers are developed responsibly, the economic benefits can be enormous. Communities are rebuilding roads and improving schools. Homeowners are seeing lower tax burdens, and skilled workers are finding new opportunities.
For decades, politicians have campaigned on championing the Forgotten Man and bringing economic opportunity back to communities that have struggled to attract investment.
Now, data centers are delivering billions of dollars in private investment to many of those very places.
We're watching a new industrial boom take shape across America, creating jobs and revitalizing communities that Washington has spent decades promising to help. Before politicians rush to stop it, they ought to take a serious look at what those communities are gaining.
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And they should consider what their constituents stand to lose.
