Data centers are largest financial bet in U.S. history
The article examines the unprecedented scale of U.S. data center and artificial intelligence investment, citing a QTS project under construction in Eagle Mountain, Utah, as one example. It also highlights concerns about electricity and water demand, reduced tax benefits, pressure on housing investment, and data center approval pauses in some states and localities.
U.S. data center construction is attracting an estimated $10 trillion in investment and could account for nearly 4% of gross domestic product, according to research cited by the article. Work is continuing on a QTS data center in Eagle Mountain, Utah, while analysts compare the current AI-driven buildout with historic railroad and infrastructure expansions.
The investment boom is prompting concerns over limited job creation, housing being crowded out, financial risks, and rising electricity and water costs. Nevada has reduced some tax abatements and is requiring data centers to address their energy and water demands, Virginia has imposed a data center electricity surcharge, and Oregon has continued a freeze on data center approvals. Economists and researchers, including Paul Krugman, Josh Bivens and Columbia Business School professor Stijn Van Nieuwerburgh, questioned the durability and broader economic benefits of the buildout.