Why Better‑off Cities and Towns See More Benefits From Data Centers Than Rural Regions
A Georgia Institute of Technology study found that data centers boost local economies and jobs primarily in urban areas, with minimal gains in rural regions, and can raise retail electricity prices by about 5%. The article highlights increasing national opposition to data centers, citing over 1,200 public actions, including zoning fights and moratoriums. Maine is presented as an example, where a proposed statewide data center moratorium bill was passed by lawmakers but vetoed by Governor Janet Mills, though she did sign separate legislation barring state tax incentives for data centers.
Researchers Daniel Yue and Yiyang Zeng from the Georgia Institute of Technology published a study indicating that data centers contribute to economic growth, job creation, and wage increases, but these benefits are predominantly observed in developed metropolitan areas, with rural communities seeing negligible impact. The study found that within three years of a data center opening, local employment increased by approximately 0.9%, wages by 1.1%, and the number of business establishments by 1%, with these gains escalating over the long term.
The research also investigated the impact on electricity prices, estimating a roughly 5% rise in retail electricity costs in localized utility service areas after a data center becomes operational. However, the authors acknowledged that this figure could vary significantly due to diverse regulatory frameworks and regional grid complexities.
The article notes a surge in community opposition to data centers since early 2024, with the Data Center Tracker recording over 1,200 public actions, including zoning disputes, public campaigns, and temporary moratoriums. Common concerns cited are grid capacity, water usage, and transparency in siting. Maine exemplifies this trend, where state lawmakers passed a bill to enact a statewide moratorium on new data centers. Governor Janet Mills subsequently vetoed this measure, citing its potential to derail a $550 million data center conversion project at the former Androscoggin Mill in Jay. Despite the veto, Governor Mills supported the principle of a development pause and enacted separate legislation to prohibit state tax incentives for data centers, additionally pledging to establish a council to study the industry statewide.