Artificial intelligence (AI) and the data centers that power it are increasingly being credited with breathing new economic life into small towns across the United States. While some critics raise environmental concerns and the potential for increased utility costs, proponents argue that these developments are revitalizing communities, creating jobs, and even lowering bills for residents.
In towns like Ellendale, North Dakota, a data center's arrival has reversed decades of economic decline. The influx of jobs and tax revenue has allowed the town to fund significant improvements, including repaving streets, renovating a senior center, constructing a new public-safety complex, and refurbishing its historic opera house. Similarly, in Richland Parish, Louisiana, a Meta data center generated enough tax revenue to provide local teachers with $50,000 bonuses. Rural Virginia's Louisa County and Quincy, Washington, have also experienced economic benefits, including tax cuts and improved infrastructure, attributed to data center development.
Wells Fargo analyst Ohsung Kwon's research suggests that communities hosting data centers see substantial economic benefits during both construction and subsequent years.
Claims that data centers are driving up water and utility bills are also being challenged. Power companies have been quick to blame data centers for cost increases that began before the widespread adoption of advanced AI. However, proponents of data centers highlight initiatives like President Donald Trump's Ratepayer Protection Plan, which aims to ensure AI companies cover their own costs and shield consumers from rate hikes. In some instances, data centers have been linked to modest decreases in electricity rates. This is partly because large data centers can absorb significant fixed costs for utility companies, spreading less of the burden among individual residential customers. In Ellendale, North Dakota, for example, electricity bills reportedly decreased by $250 per customer after the data center's arrival.
Concerns about water usage are also being addressed by advancements in cooling technology. Many new data centers utilize closed-loop cooling systems, which significantly reduce or eliminate the need for community water in daily operations. Nvidia's chief sustainability officer has stated that the water consumption challenge for data centers is largely resolved.
Beyond infrastructure, AI is seen as a tool for leveling the economic playing field for small businesses. Traditionally disadvantaged by their inability to afford large teams of programmers and consultants, small businesses are now gaining access to similar capabilities through AI at a fraction of the cost. This trend is anticipated to lead to an "explosion in small businesses," according to Russell Kaplan, president of Cognition AI. A Small Business Cash Flow Trend Report indicated that 61% of small-business owners are using AI, with 91% of those users reporting positive impacts.
Furthermore, the AI and data center sectors are creating well-paying jobs for blue-collar workers. Mike Rowe, host of "Dirty Jobs," recounted visiting a data center in Plano, Texas, where he met electricians under 30 earning between $240,000 and $280,000 annually with ample overtime opportunities. This economic benefit for American workers is presented as a positive outcome, contrasting with ideologies that proponents claim depend on keeping people impoverished.