Data centers bring tax revenue, jobs and lower power bills to struggling US towns
Ellendale, North Dakota and other communities are seeing major tax revenue gains and union job growth from data center development, while new utility agreements are projected to cut residential power
Data centers bring tax revenue, jobs and lower power bills to struggling US towns Ellendale, North Dakota and other communities are seeing major tax revenue gains and union job growth from data center development, while new utility agreements are projected to cut residential power bills. Data centers are delivering major tax revenue and new jobs to communities across the United States, with the newest figures from Ellendale, North Dakota showing how quickly the benefits can arrive. The town of 1,100 people collected roughly 400,000 dollars annually in sales taxes before Applied Digital began its new 11 billion dollar data center development. In the first seven months of 2026 alone, that figure jumped to 3.5 million dollars. That revenue is helping Ellendale repave its roads and renovate its senior center. A historic opera house is being restored.Data Centers Transform Small TownsFor a small town, this kind of investment can transform the community for generations, and Ellendale is far from alone. As midterm elections approach, data centers have become an increasingly popular political target. Politicians are raising alarms about their impact on communities, with some calling for restrictions. There has been plenty of fearmongering, but the more Americans learn about data centers and the more communities experience their benefits firsthand, the stronger the case for continued development becomes.Data centers have existed for decades, but the rapid growth of artificial intelligence has dramatically increased the demand for computing power. Americans understandably have questions about what this development means for electricity prices, water supplies, and their quality of life. Newer facilities are increasingly being designed with technologies that can address these concerns, including closed-loop cooling systems and quieter operations.Teachers who have dedicated their careers to educating children are receiving a life-changing financial benefit, while school districts become attractive destinations for talented educators. It is hard to imagine a politician campaigning against higher teacher pay or better schools, yet those are precisely the kinds of benefits communities stand to lose when development gets blocked. In Richland Parish, Louisiana, and Loudoun County, Virginia, housing affordability is dominating political conversations.Electricity Prices and Homeowner DividendsIn these places, building data centers is helping some communities make the American Dream a little easier to achieve. A proposal would pay homeowners data center dividends to counter growing backlash. Electricity prices are another major concern, and understandably so. Families are already struggling with higher utility bills, and the arrival of a major new industrial customer can raise legitimate questions about who pays for new infrastructure.But the enormous, predictable electricity demand from data centers also creates opportunities to finance new generation and grid investments, spreading infrastructure costs across a larger customer base. In Georgia, agreements involving new large electricity customers, including OpenAI, are projected to lower residential power bills by 180 dollars annually by 2029. With the right arrangements in place, the arrival of data centers can mean lower costs for the families already living in these communities.Trade unions have been among the most vocal supporters of data centers because of the good-paying jobs they create. Building these facilities requires years of work for skilled tradesmen, with new projects creating opportunities for the next generation of American workers. IBEW Local 24 expanded its membership by 50 percent, and IBEW Local 163 doubled its ranks. Politicians have spent decades promising to bring back good-paying blue-collar jobs.Trade Unions Support Data Center JobsHere is an industry creating enormous demand for exactly those workers. Texas Gov. Greg Abbott said businesses can find ways to be a good neighbor as he discussed data centers and his opponent Gina Hinojosa's policy differences and the state's razor-thin U.S. Senate race. Of course, developers have a responsibility to work with residents and local governments to address legitimate concerns.Communities deserve clear answers about electricity costs and water use. They should also understand how the investments taking place in their backyards will benefit local families. When data centers are developed responsibly, the economic benefits can be enormous. Communities are rebuilding roads and improving schools.Homeowners are seeing lower tax burdens, and skilled workers are finding new opportunities. For decades, politicians have campaigned on championing the Forgotten Man and bringing economic opportunity back to communities that have struggled to attract investment. As data centers take shape across America, creating jobs and revitalizing communities that Washington has spent decades promising to help, politicians rushing to stop them ought to take a serious look at what those communities are gaining.
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