Data center moratoriums impact public schools and taxpayers
This commentary argues that data center moratoriums primarily harm public schools and taxpayers by reducing potential tax revenue, rather than significantly impacting large tech companies. It highlights New York's statewide moratorium as a negative example affecting Genesee County, contrasting it with the economic benefits seen in Loudoun County, Virginia. The author advocates for proponents of data centers to emphasize their financial benefits to communities.
Paul Steidler, a senior fellow with the Lexington Institute, argues in a commentary that data center moratoriums disproportionately harm public schools and taxpayers by depriving them of crucial tax revenue, rather than solely affecting large tech companies. Steidler points to a July 14 executive order by New York Gov. Kathy Hochul, which imposed a one-year statewide moratorium on data centers requiring over 50 megawatts of power, as a prime example. This decision negatively impacted Genesee County, upstate New York, which had anticipated significant economic benefits, including $1.3 billion in new wages and hundreds of millions for municipalities, schools, and electrical infrastructure.
Steidler contrasts New York's situation with Loudoun County, Virginia, known for its high concentration of data centers. Loudoun County has reportedly reduced property taxes for 10 consecutive years, built new schools, and boasts high per-pupil spending, with its fiscal 2027 budget anticipating $1.2 billion in total data center taxes. Virginia Gov. Abigail Spanberger has also cautioned against moratoriums, highlighting the reliance of some localities on data center revenue for public services.
Further supporting his argument, Steidler cites examples from Louisiana, where a school district granted large teacher bonuses due to a data center, and Missouri, where Gov. Mike Kehoe announced an Amazon data center project in Montgomery County would generate hundreds of millions in property tax revenue. Columbia County, Georgia, also aims to reduce residential property taxes by leveraging payments from two Google data centers. Steidler concludes by urging transparency from data center proponents regarding community benefits and challenging moratorium supporters to justify burdening taxpayers instead of tech companies.