Data Centers Boost Jobs 4% in Urban Areas, Study Finds

Data center development can significantly boost economic growth and job creation, but these benefits are most pronounced in more urban and developed local economies, according to a new study. The research, conducted by scholars examining how technological change shapes business strategy, aimed to provide policymakers with rigorous evidence to navigate the growing debate surrounding data center expansion. The findings indicate that the local economic context surrounding a data center is a more critical factor in determining its economic impact than the facility itself.

This research emerges amidst increasing public backlash against data centers, with over 1,200 documented public actions, including zoning fights and moratoriums, logged since early 2024. Key concerns frequently raised by communities include grid capacity, water usage, and transparency in site selection. This momentum has translated into political action, as seen in Maine where lawmakers passed a bill in spring 2026 proposing the state's first statewide moratorium on new data centers. Governor Janet Mills ultimately vetoed the measure, citing its potential to halt a $550 million conversion of the Androscoggin Mill into a data center.

Despite the veto, Governor Mills acknowledged the political climate by supporting a pause in development in principle and signing legislation to bar state tax incentives for data centers. She also committed to establishing a council to study the industry statewide. This situation in Maine exemplifies how statewide decisions on data center promotion or restriction can hinge on individual local cases. The study's findings suggest that while data centers can be economic drivers, their positive effects are concentrated in urban settings, leaving rural economies with minimal gains. Up to 10 other states are reportedly considering similar measures to control data center expansion, underscoring the national relevance of this economic impact analysis.