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Data Centers Target Rural Communities for Lower Costs, Not to Create High-Quality Jobs, Study Finds
Rice University research shows hyperscale data centers choose rural U.S. sites for cost and land, with $100 billion in projects blocked or delayed in early 2025, Data Center Watch found.
- Rice University researchers analyzed pre-pandemic 2018–2019 market data and found hyperscale data center developers favor low-density rural communities for low costs and abundant land rather than jobs.
- Local governments often offered tax incentives hoping to attract data centers, while residents of rural communities raised concerns about electricity costs, pollution and threats to rural character.
- Community opposition translated into delays, with Data Center Watch estimates around $100 billion in projects blocked or delayed between 2024 and early 2025.
- A turning point in mid‑2025 intensified opposition as nearly $100 billion in blocked developments surged between late March and June 2025, covering two‑thirds of projects Data Center Watch tracked.
- Researchers warn the market shows little sign of geographic spread and the study supports speculation that artificial intelligence demand will further concentrate siting decisions among hyperscale developers.
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Research by the Environmental Protection Group Food & Water Watch shows that the data center industry, despite its explosive growth, generates very few permanent jobs. The investment required for a single position is almost 100 times higher than the average, while the consumption of resources is exploding, questioning the economic benefits promised to the communities.
Coverage Details
Total News Sources15
Leaning Left1Leaning Right0Center13Last UpdatedBias Distribution93% Center
Bias Distribution
- 93% of the sources are Center
93% Center
C 93%
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