Data Center Facts

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Americans across the country are raising concerns about data centers being built in their communities. Here are the facts you need to know and the ways some communities have benefited from data center development.

Myths vs. Facts

Data centers are becoming a fixture of local debate. We examined seven commonly repeated claims against what the research actually shows.

MYTH Data centers raise electricity rates for residents
FACT Data center development can help lead to lower rates

States with the largest growth in data center energy demand saw a relative decline in average electricity prices, per an analysis of pricing data from 2019–2025. (sources 1, 2)
- Because so much of the grid’s cost is fixed infrastructure, spreading that cost across more electricity sales can push prices down over time. (source)
Several major utilities have announced lower residential bills tied to grid investments enabled by data centers.
- PG&E’s CEO says data center growth helped cut rates 11% in California since 2024. (source)
- Entergy announced 2.3 million customers in AR, LA, and MS would see ~$5B in long-term savings from data center agreements. (source)
- AEP’s Indiana Michigan Power announced reduced base rates, citing load growth and revenue from large customers including data centers. (source)
A June 2026 Rutgers University study found no “robust, clearly detectable way” new data center openings raised resident electricity bills to date. (source)
- The study spanned 24 states and 2,277 operational data centers from 2014 through 2024. (source)

MYTH Data centers use too much energy for the grid to keep up
FACT Data center facilities are only growing more efficient through innovation

Modern data centers use better cooling systems and more efficient power equipment than ever before. (source)
- Since 2007, industry-average PUE (Power Usage Effectiveness) has dropped from 2.5 to about 1.5. (source)
- Data centers built in the past five years are more efficient still — Google, Amazon, and Microsoft were already reaching PUEs of 1.2 or lower as of 2024. (source)
Predictions of runaway computing energy use have a poor track record.
- A 1999 Forbes article predicted computing could consume up to half of U.S. electricity within a decade. By 2023, data centers still accounted for only 4.4% of U.S. electricity consumption. (sources 1, 2)

MYTH Data centers use massive amounts of water and strain utilities
FACT Data centers are not a major driver of water usage nationwide

Closed-loop cooling systems allow water supplies to be reused multiple times, drastically cutting freshwater use. (source)
The U.S. loses more treated drinking water to leaky pipes every day — about 6 billion gallons — than data centers consume nationwide. (source)
Golf courses use more water than data centers do nationwide, consuming an estimated 2 billion gallons per day. (source )
Virginia’s Joint Legislative Audit and Review Commission found data center water usage “currently sustainable,” with most using the same or less than an average large office building. (source)
- Northern Virginia is home to the largest concentration of data centers in the world. (source)

MYTH Data centers are a drain on local taxpayers
FACT Local governments gain critical revenue from data centers, in some cases enough to lower taxes on residents

A single large data center campus can become one of a county’s largest taxpayers. (source)
Local government staff from Virginia’s five counties with the greatest data center presence say the revenue has benefited their localities. (source)
- That revenue has helped lower real estate tax rates (Loudoun, Prince William), fund an affordable housing trust (Henrico), and build new schools (Mecklenburg). (source)
Loudoun County, VA lowered its real property tax rate every year from 2016 to 2025, crediting data center revenue as a major component to that reduction. (source)
- The rate fell from $1.145 per $100 of assessed value in 2016 to $0.805 in 2025 — one of the lowest in Northern Virginia. (source)
  - The county reports that absent the data center industry, the rate “would likely be more than $1 per $100 in assessed value.” (source)
- The county says data center revenue has funded growing school and service needs while still lowering the property tax rate. (source)
  - Loudoun County collected around $900 million in tax revenue from data centers in FY2025. (source)
Louisa County, VA residents will get a personal property tax cut starting FY2027, which officials credit to data center development. (source)
New Albany, OH, used revenue from a special assessment on data centers to fund a police station expansion, a veterans’ memorial, and a new park with trails and a playground. (source)

MYTH Data center incentives are a bad return on investment for governments
FACT Studies find incentives deliver a strong return, with localities collecting far more in taxes than they spend

Data centers’ total financial support to federal, state, and local governments rose from $165 billion in 2023 to $204 billion in 2024, a 24% increase, with continued growth expected. (source)
- Data centers “face high tax burdens and are particularly substantial contributors to local coffers,” per the Tax Foundation. (source)
An economic impact study of Ohio data centers found every $1 of incentives yielded $2.10 in tax revenue. (source)
Loudoun County, Virginia, reports that for every $1 in services it provides to data centers, it receives $26 in tax revenue. (source)

MYTH Data centers create few real, local jobs
FACT Studies show data centers deliver measurable job growth and wage increases

New data centers can lead to an eventual 3.5% rise in local employment and a 5% rise in wages, per a Georgia Tech study. (study)
A review of 770 facilities found that counties getting their first large data center saw private employment rise up to 5%, construction employment rise 11%, and information-sector employment rise 22%. (source)
- Wages rose 3–4% for both existing workers and new hires, per Brookings. (source)
Average pay for data center construction jobs can run up to 32% higher than other construction jobs, per Fortune. (source)
In Virginia, every data center job supports an estimated 3.5 additional jobs elsewhere in the state economy. (source)
At peak construction, roughly 1,500 workers are on site building a single data center, per Virginia’s JLARC. (source)
- Roles include site developers, surveyors, equipment operators, steel and concrete workers, electricians, pipefitters, and HVAC technicians. (source)
- Employees and contractors average about $100,000 a year; a journeyman electrician earns roughly $56/hour. (source)

MYTH Data centers lower residential property values
FACT Multiple studies find no negative impact on property values

Using Bureau of Labor Statistics data and a national dataset of 770 U.S. data center facilities, Brookings found “no significant effect on home prices.” (source)
A 2025 George Mason University study of Northern Virginia homes found average home prices were higher closer to a data center. (source)
- The farther a house was from a data center, the lower its sales price — a pattern that held for single-family homes, townhouses, and condos. (source)

Data Centers and the Community

In Quincy, Washington, revenues generated by data centers have helped fund a new hospital, police and fire stations, city hall, a $120 million high school, and more. Since its first data center development in 2006, the city’s population has increased by 57%, more than 10% of the population now works at a data center, and the poverty rate has been cut by more than half.

In Loudoun County, Virginia, data centers are expected to generate $1.3 billion in tax revenue in 2027. According to reporting, this income allowed the county to cut residential property taxes by 30%, fund a new recreation center, build two new schools, and expand fire and other emergency services.

In February 2026, a Louisiana data center developer announced “plans to invest up to $400 million in public water infrastructure” at “no cost to residents.” The developer’s community fund has also awarded $500,000 in grants to 46 local nonprofits, schools, and individual community members.

In Ohio, a data center developer in Marysville pledged to deliver $15 million per year in funding for local schools over 15 years. The City of New Albany reportedly received $10 million in tax revenue from data centers in 2025, which “helped to fund a police station expansion, a new veterans’ memorial” and walking trails.

According to June 2026 media reports, data center construction drove a 34% increase in the City of Abilene’s sales tax revenue through May 2026. The city of Fort Worth’s data centers generated more than $83 million in gross property-tax revenue over a five-year period ending in 2024.

Find Out How Data Centers Are Supporting
Communities Across the Country

Alabama

Funding from a June 2026 data center investment in Jackson County supports community education initiatives, including $550,000 worth of STEM kits for children in grades 4–8.
- Northeast Alabama also received funding from the investment, seeding a $2 million “Energy Impact Fund” to support programs that help to lower energy bills.
In May 2026, Huntsville schools received $50,000 to support STEM lab experiences for middle school students thanks to a data center.

Georgia

Columbia County officials predict the construction of two data centers could allow them to lower or even eliminate homestead property taxes.
In January 2026, the mayor of the City of Covington proposed using revenue from a new data center to replace property taxes for homeowners.
A data center under development in the City of LaGrange will help fund upgrades to electrical infrastructure and replace revenue lost by the closure of the city’s former largest electric customer.
Mercer University received a $42,000 grant to support workforce development in 2022 thanks to a data center company operating in the area.

Indiana

Indiana-based nonprofit Southern Indiana Works received $16,200 for career development from a data center operator.
In February 2026, electric power company Indiana Michigan Power announced data centers being built would generate enough revenue to potentially lead to a reduction in energy bill costs.

Mississippi

In November 2025, a data center company pledged $150,000 in Warren County to support STEM education, health, and well-being.

New Mexico

In August 2026, a data center company announced a project that will allow New Mexico’s Rio Grande-Bravo watershed to “conserve approximately 21 million gallons of water annually.”
- The company also pledged $50 million to help Doña Ana County improve its wastewater systems.

Oregon

Two data center operators funded construction for a new “state-of-the-art aquifer system” in Prineville, Oregon.
In March 2026, Economic Development for Central Oregon received a $50,000 grant from a data center company to “expand economic opportunities” in Crook and Jefferson Counties.
In November 2025, a data center developer completed $28 million in water infrastructure upgrades in the City of The Dalles and donated groundwater rights providing the city an additional 100 million gallons a year.

Texas

The City of Taylor has projected that a planned data center will bring “as much as $30 million in total additional revenue” which could be used to reduce taxes and invest in community services.
- The local school district will receive an estimated $20 million that could be used to improve facilities and increase teacher pay.
In July 2026, a data center company donated $15 million for a new animal shelter in Ellis County.
In June 2026, a data center company announced an agreement “to develop a co-located power facility in west Texas.”
In June 2026, a data center developer announced a $10 million pledge for “water stewardship” in Texas as part of a “new $17 million national initiative.”
According to June 2026 media reports, data center construction drove a 34% increase in the City of Abilene’s sales tax revenue through May 2026.
- The City of Abilene projects data center construction will generate a more than $1 billion increase in taxable property value in FY2027.
In March 2026, a data center company announced its Texas-based projects would add “5,000 megawatts of clean energy” to the Texas energy grid.
In March 2026, Belton Independent School District announced it received a $44,050 community action grant from a data center company to establish “STEM makerspaces” at three elementary schools.
In October 2025, a data center developer and an energy provider announced a partnership to supply data centers across Texas with “2,300 megawatts (mw) of ultra-low-emissions power infrastructure.”

In August 2025, a data center company announced an “over $25 billion” investment into a Texas data center campus they claim will be “optimized” to preserve the local communities’ resources.
City of Fort Worth’s data centers generated more than $83 million in gross property-tax revenue over a five-year period ending in 2024.
In May 2024, a data center developer that broke ground on its first Texas-based $600 million data center in 2019 announced it has since invested $1.6 billion in Texas.
In May 2024, a data center company gave the Midlothian Independent School District a $150,000 grant to support e-sports, the Future Farmers of America (FFA), and a teen suicide prevention program.
In October 2023, a data center company awarded the Midlothian public library a $100,000 grant “to better meet the needs of a growing community.”
A company building a data center in Temple in 2022 made an $8 million contribution to improve water and wastewater systems in the city.

In 2015, a data center development project in Fort Worth was projected to provide up to $48.5 million in tax revenue over 20 years.
In July 2015, a data center developer announced a partnership to construct “a 202-megawatt wind farm on 17,000 acres” that it “will not own” to fully power their Fort Worth-based data center.

Washington

Data centers in Quincy, Washington reportedly pay for their own infrastructure and electricity costs.
Data center revenue has enabled the City of Quincy to construct and improve a $120 million high school in addition to a hospital, a public library, and fire and police stations.
- By August 2026, Quincy opened “a $15 million aquatic center with a six-lane pool, waterslides and a lazy river,” as part of a “public parks splurge,” culminating in “a 143,000-square-foot indoor sports complex.”
- Poverty in Quincy reportedly plummeted “from 29.4% in 2012 to 6.2% in 2024.”

Data centers in the City of Quincy have driven down the property tax levy rate for residents by almost 70% since 2006.
In Grant County, tax revenue from the top 10 taxpayers increased by 1,277% from 2006 to 2025 and 7 of those 10 highest taxpayers are now data centers.

Arizona

In March 2023, the City of Goodyear entered into an agreement with a data center developer that resulted in $42 million in funding to expand the city’s wastewater treatment capacity.
A Mesa data center built in 2022 funded upgrades to electrical infrastructure.

Idaho

The City of Kuna was gifted a $70 million “water and wastewater treatment facility” to support the local community that was built alongside a data center development.

Iowa

In July 2026, a data center company announced it will provide $5 million to fund various education and workforce development initiatives in eastern Iowa.
West Des Moines received $25 million for water infrastructure improvements from a data center operator, including a new tank that serves the data center and local residents.
A data center project in Altoona, Iowa announced it would bring $2.5 billion in investment and over 400 jobs to the area.
In 2014, a Council Bluffs area data center reached an agreement to purchase up to 407 megawatts of wind energy to help supply its operations.

Missouri

In May 2026, the Missouri Office of the Governor announced a $15 billion data center investment in New Florence, with the company funding the full cost of the infrastructure needs for its operation.
- The development pledged an additional $20 million to support programs aimed at lowering energy bill costs for Missourians.

North Dakota

In August 2026, the City of Ellendale announced a planned $11 billion data center alongside associated grants for its school district to buy new computers and renovate a playground.
- The data center is expected to pave the way for a “$250 drop in electric bills for the average household.”

Pennsylvania

Data center projects in Lackawanna County are projected to provide new transmission lines and enhanced grid reliability for residents.

Utah

In June 2024, the City of Eagle Mountain announced it was collaborating with a data center company to convert water used to cool data centers to water grass at a city park.
A data center company’s interests in Eagle Mountain reportedly included $100 million for “infrastructure, including a new electrical substation” in 2018.

Wisconsin

In December 2025, a data center developer announced investments in Ozaukee and Milwaukee Counties designed to support workforce development, a food pantry, homelessness prevention, and local internet access.
In November 2025, the City of Port Washington was the beneficiary of a $3 million commitment from a data center developer “to support the watershed-scale Valley Creek Corridor Revitalization Project” to restore Valley Creek’s natural flow, stabilize its banks and improve its aquatic health.
In Beaver Dam, a data center company is working to restore 570 acres of wetlands and prairie surrounding its data center campus.

California

Data center growth in California has reportedly helped the local utility lower electric rates for Californians four times over the course of two years.

Illinois

In June 2026, the City of Yorkville approved an updated data center campus in exchange for $15 million for the community, including to fund the construction of new schools.
In May 2026, the City of Joliet announced a planned data center would generate roughly $310 million in property taxes and $40 million in utility taxes over the course of 30 years.
In October 2025, Sangamon County announced a proposed data center would bring the community “a capital investment exceeding $500 million” and “ongoing property tax revenue.”
In 2025, a data center company reached a deal with an Illinois utility to keep a nuclear power plant open for another 20 years.
Between 2021 and 2024, DeKalb received $48.5 million in taxes, which went “back to city services and public schools,” thanks to data centers.

Louisiana

In February 2026, a data center developer announced “plans to invest up to $400 million in public water infrastructure” at “no cost to residents.”
- The developer’s community fund has also awarded $500,000 in grants to 46 local nonprofits, schools, and individual community members.
In June 2025, a data center company agreed to fully fund the cost of a “major piece of grid infrastructure” needed to connect their center to the electric grid.

North Carolina

In July 2018, the Town of Maiden received tax revenue from a data center that allowed the town to “build a new city hall and fire station.”

Ohio

In Marysville, a data center developer pledged to deliver $15 million per year in funding for local schools over 15 years.
The City of New Albany reportedly received $10 million in tax revenue from data centers in 2025, which “helped to fund a police station expansion, a new veterans’ memorial” and walking trails.
According to the Ohio Chamber of Commerce, data centers provide over 95,000 jobs and $11.8 billion in GDP contributions to the state.

Tennessee

In March 2026, the Monthaven Arts and Cultural Center received a $30,000 grant from a data center company to expand programs for “more at-risk youth” and “military veterans suffering from PTSD.”
A data center company committed in 2025 to “exploring ways to provide energy to the grid for the benefit of the community” in Memphis.
A data center operator in Memphis pledged $24 million to build a new substation, covering the cost to deliver power to its operations.

Virginia

According to the Northern Virginia Technology Council, data centers contributed an estimated $929 million in sales and use taxes to the Commonwealth in 2024.
In Mecklenburg County, data centers account for 45% of the county’s real estate tax base, despite accounting for less than 1% of land.
- Mecklenburg County credited a data center company for supporting plans to invest over $90 million into three elementary schools.
- Tax revenue from a data center helped Mecklenburg County fund an estimated $154 million project to rebuild a middle and high school complex.
In July 2026, a data center company requested that Virginia regulators grant permission for the company to voluntarily fund necessary expansions to the electricity grid for its data centers.
In April 2026, the Louisa County Board of Supervisors credited data centers with residents receiving a 15% reduction in their personal property tax rate.
According to a March 2026 report, data centers located throughout Virginia “invest heavily in renewable energy,” including one company’s investment into 22 solar farms across 13 counties.
In December 2024, Virginia’s Joint Legislative Audit and Review Commission reported data centers have allowed localities to “lower real estate tax rates” and “construct new schools.”
A December 2024 analysis of the economic impact of data centers on Loudoun and Prince William Counties saw “data center revenue accounted for 31 percent and 7 percent, respectively, of total local tax revenue.”
- “Revenue from data centers has also funded many programs and services provided by Loudoun County to the community, including libraries, parks, recreation and community centers, and critical services in the areas of child protection and mental health.”
Loudoun County’s data center revenues have enabled it to continually lower taxes, cutting real property tax rates every year for a decade, resulting in the lowest rate of any county in northern Virginia.

Wyoming

In October 2025, a developer announced plans for a data center in Evanston, Wyoming that would be powered entirely onsite, with a plan to incorporate small modular nuclear reactors in the future.

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