AI data centre boom brings billions in tax revenue, but raises local costs
Tax revenue and jobs collide with water and power concerns as data centers spread across the US
More than 12,250 data centres now operate worldwide, with nearly half in the United States, and the industry still can't keep pace with demand. Capacity is projected to nearly double from 103 gigawatts to 200 gigawatts by 2030, according to a 2026 analysis by JLL Inc., a growth curve that's putting these facilities in more American backyards than ever.
Loudoun County in Virginia serves as an example of how this happens. It is home to more than 230 data centres covering 56.5 million square feet, which account for $1.2 billion in property taxes in FY 2026 alone or almost 39% of the total budget of the county.
More than 17,000 jobs directly and indirectly have been created in the areas of security, skilled labour, and technology. This impact is observed even in small markets, where a data centre by Meta in DeKalb, Illinois, contributed to $72 million in property taxes within four years.
A typical data centre now spans about 224 acres, a 144% jump in footprint since 2022, according to the World Resources Institute.
Costs of electricity usage in the PJM grid area rose from $2.2 billion to $14.7 billion in one year, according to Brookings, with data centres as one of the main culprits.
Usage of water is a big issue for dry states like Arizona and Nevada, where there is a direct competition between cooling operations and water resources.
According to Pew Research, 42% of Americans currently live within five miles of either a running or proposed data centre.
Organised resistance has already killed projects, including one in Prince William County, Virginia. Industry figures argue developers, not residents, should shoulder infrastructure costs like substation builds and grid upgrades tied directly to a facility's power demands.
