The Economic Value of Data Centers

Determining the economic value of data centers is a complex task. While it is easy to recognize the job creation and local material purchases during construction, understanding the revenue generation and tax implications once the data center is operational is challenging. Municipalities often see data centers as a positive development due to low traffic, noise, and pollution impact, along with property tax benefits. However, there is a lack of comprehensive cost-benefit analysis that considers the socialized costs of building grid infrastructure and water supply. Moreover, the challenge extends to global companies that structure themselves to optimize tax payments, making it unclear how to account for the revenue generated in a particular country.