Study Examines Economic Impact and Concerns of Data Centers
A Georgia Tech professor's research indicates that data centers provide a modest 1% increase in local jobs and business establishments within the first three years, with effects amplifying over time. However, they can lead to a roughly 5% increase in electricity prices in counties with their own grids. The economic benefits are more pronounced in densely populated areas compared to rural ones, while concerns about water, energy, and pollution persist.
Daniel Yue, an assistant professor at the Georgia Institute of Technology's Scheller School of Business, discussed his research on the economic impact of data centers across the U.S. with KERA's NTX Now. His study found that data center entry leads to a modest 1% increase in local jobs and new business establishments within the first three years, with these economic spillovers growing over time. These gains are not limited to the construction industry, suggesting broader economic development.
Despite the significant investment data centers represent, much of the capital goes into hardware rather than local labor. Yue's research also indicates a modest 5% increase in electricity prices in counties with their own electrical grids, contrasting with more extreme narratives. He notes that economic benefits are more pronounced in densely populated areas due to existing infrastructure, which helps amplify local investments, unlike in more rural settings.
The findings address community concerns in North Texas and beyond regarding water and energy consumption, as well as pollution. Yue emphasized the importance of further research to understand the specific industries benefiting from data centers and to document the environmental and other downsides, which are often at the core of political debates. This understanding is crucial for communities to make informed policy decisions regarding data center development.