STILLWATER, Okla. (RFD News) — Data center development can bring both economic benefits and challenges to rural communities.
McKenzie Boyce with Oklahoma State University said the impact can depend on how a project plays out within a community.
“Unfortunately, there’s not a clear set of benefits and limitations. I think that any of the economic considerations of data centers can be either a benefit or a limitation or drawback, depending on how it plays out in that community. Some of the main economic considerations will be revenue, employment, infrastructure, and opportunity costs. So, we can think of data centers potentially generating jobs in communities at maybe higher wages, as well as additional revenue coming through to that community through sales tax revenue, property taxes, payment in lieu of tax agreements, and we also know that these data centers are investing in a lot of infrastructure.”
Boyce said local communities should do their research before making a decision.
“While evaluating data centers and deciding whether it is a benefit or drawback to the community, especially in rural areas, we can think about what other types of developments they may be foregoing in order to say yes to that data center. Whether it’s a benefit or a pitfall across all of these different economic considerations will really depend on the specifics of the project, as well as some of the negotiations that the host community can work out.”
Analysts say each landowner’s situation is unique, with decisions about farmland often involving both financial considerations and family goals.
