Study Finds Data Centers Lift Urban Wages 5.5% as Retail Power Prices Rise 5%
Updated
Updated · The Conversation · Jul 10
Study Finds Data Centers Lift Urban Wages 5.5% as Retail Power Prices Rise 5%
3 articles · Updated · The Conversation · Jul 10
Summary
Urban counties saw the biggest gains after a data center opened: employment rose 4.1% and wages 5.5%, while less populous counties showed negligible job and wage spillovers.
Across all counties, the first three years brought average increases of 0.9% in employment, 1.1% in wages and 1% in business establishments, with longer-term gains reaching 3.5%, 5% and 4.7%.
Retail electricity prices increased about 5% in localized utility service areas after centers began operating, though the researchers said that estimate is harder to isolate and may vary by grid rules, weather and transmission costs.
The findings arrive as backlash intensifies: more than 1,200 public actions against data center siting have been logged since early 2024, and up to 10 states are weighing measures to slow expansion.
Maine illustrates the policy split — Gov. Janet Mills vetoed a statewide moratorium that threatened a $550 million Jay project, but still barred state tax incentives for data centers and backed further study.
Data centers promise economic growth, but are local communities just footing the bill for big tech?
As AI’s energy thirst grows, who will win the escalating battle for America’s power and water?
2026 Data Center Showdown: Public Opposition, Energy Price Surge, and the Push for Policy Reform
Overview
In early 2026, public and policy attention on data center developments surged across the US, driven by growing scrutiny and widespread community concern. A Gallup poll showed that 70% of Americans oppose having a data center in their community, fueling strong public sentiment and prompting communities to grapple with the perceived negative impacts of these large-scale projects. This led to a wave of local and state-level actions, including an increasing number of moratoriums and calls to pause new data center construction. For example, the city of Eagan adopted a one-year moratorium, which resulted in a lawsuit from a data center owner, highlighting the escalating tensions and complex challenges surrounding data center expansion.