Whether they are called myths or urban legends, I’ve heard a variety of them when it comes to data centers. In this section earlier this year, one of our stories addressed a few, such as claims they are overloading the electric grid and claiming endless amounts of drinking water. (Negative on both counts.)
But with so many of the myths still making the rounds, allow me to put to bed some others.
Myth: Data centers provide no benefit to local residents – While the vast majority of people may never go inside a center, they count on data-dependent services each day. So, the debate actually is more about how much benefit there is.
Facts
Data centers support:
Cloud services used by businesses
and consumers
Streaming platforms
Online banking
Emergency communications
Healthcare systems
Government operations
Artificial intelligence infrastructure
Data centers contribute little to local tax revenue – While tax incentives may be granted in some cases, the overall tax benefits often exceed the incentives granted.
Facts
Centers generally pay property taxes, construction-related taxes, utility costs and various local fees.
Large campuses often boost assessed property values to broaden the local tax base.
Myth: Data centers don’t create any jobs – While centers generate fewer permanent jobs per acre than many commercial developments, they still create jobs and economic activity.
Facts
Construction of the facilities can create hundreds or thousands of jobs over several years.
Once online, the centers employ technicians, network engineers, electricians, security personnel, facility managers and operations specialists.
Centers also support indirect employment through contractors, utilities, telecommunications providers and equipment suppliers.
Myth: Data centers wreck property values – One size does not fit all. There is no universal rule that data centers either harm or improve property values. Just like in real estate, it depends on location, location, location.
Facts
Property impacts vary based on buffering, landscaping, noise control, transmission infrastructure and local market conditions.
Some developments have little measurable effect on nearby residential values.
Myth: Data centers use land inefficiently – Whether a data center is a “good” use of land parcels is largely based on judgment rather than objective fact.
Facts
If the objective is high assessed value with low traffic and limited demand for schools or municipal services, data centers can compare favorably.
If the objective is maximum employment density, manufacturing or mixed-use development may perform better.
I hope this information helps to put the myths to rest so we can focus on our future.
