Data centers are now the largest financial bet in US history
The article examines the unprecedented scale of U.S. data center investment, estimating about $10 trillion in spending and nearly 4% of GDP. It highlights growing concerns over tax incentives, electricity and water demands, housing displacement, and state efforts to make data centers pay more of their infrastructure costs, including a continued freeze on approvals in Oregon.
The U.S. data center construction boom is projected to attract roughly $10 trillion in investment and generate an economic impact approaching 4% of GDP, according to research cited from Columbia Business School professor Stijn Van Nieuwerburgh. The article compares the buildout with the railroad expansion of the 19th century and notes that Texas, Virginia, Ohio and Georgia are expected to receive the largest concentrations of investment. QTS is continuing work on a data center in Eagle Mountain, Utah.
States and economists are increasingly questioning whether the boom will deliver enough jobs and tax revenue to offset its costs. Nevada has reduced tax abatements and plans to require data centers to cover energy and water demands, Virginia has adopted a data center electricity surcharge, and Oregon has continued a freeze on data center approvals after public comments focused heavily on utility affordability. Analysts also warn that data center investment may be crowding out housing and could expose the economy to financial risk if artificial intelligence spending becomes less profitable.