Understanding Data Centers: The economic trade-offs of data centers

On this special edition of Worker Wednesday on Your Money Matters, Ken Edwards, Ed Maher and Phil Davidson are joined by Michael Miller, Economics Professor, Western Washington University and Professor Emeritus at DePaul University who kicks off the conversation by talking about a NBER working paper examining 30 years of data on how data centers impact local economies. Miller explains that while data centers represent economic trade-offs, counties that house them see an overall net gain in local GDP. He highlights that data centers generate a massive multi-year boon for construction trades and high-paying permanent technical roles, while raising local property tax revenues to support public services like schools. Addressing common concerns, Miller notes that while heavy electricity demands can push up power rates if the grid isn’t expanded, water usage is relatively minimal compared to golf courses, and pausing development through state moratoria will simply drive these lucrative projects and AI job opportunities to neighboring states or Canada.