Sutherland Institute touts job creation, economic benefits for communities of data center projects
The conservative Sutherland Institute, based in Salt Lake City, released a report promoting the economic benefits and job creation associated with data centers, urging communities to evaluate projects individually rather than imposing blanket bans. This report comes amidst ongoing local opposition and litigation concerning the proposed Stratos Center Project in Box Elder County, Utah, highlighting concerns over environmental risks.
The Sutherland Institute, a conservative public policy think tank based in Salt Lake City, has released a new report titled "Building a Human-Centered Digital Future: Data Center Job Creation." Authored by tech policy analyst Ford Copple, the study emphasizes the significant economic benefits data centers can bring to communities, including job creation in construction and permanent technical roles, expansion of the local tax base, and support for schools and community organizations. The report highlights findings from a Brookings Institution study, which observed a 4-5% increase in private employment and a 3-4% wage increase in counties hosting their first large data center.
The institute's analysis comes after months of intense local opposition in Box Elder County, Utah, against the proposed Stratos Center Project, which has led to litigation in state courts and changes in local and state office holders. Copple urges communities to look past negative headlines and objectively assess each data center project's merits and local impacts, rather than resorting to "blanket bans, preemptive moratoriums and broad legislation.
Supporting the institute's claims, research from the Kem C. Gardner Policy Institute at the University of Utah suggests a $2 billion data center could significantly impact property tax bases in many Utah counties. Furthermore, a study by TRG Datacenters indicates that many environmental concerns regarding data centers might be exaggerated, citing Virginia as a prime example of a state effectively managing AI infrastructure growth with lower carbon emissions relative to its data center capacity.
The Sutherland Institute concludes that data centers can offer substantial economic advantages, especially in rural areas lacking high-paying job opportunities, advocating for a nuanced, project-specific evaluation approach by policymakers and voters.