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Small towns experience economic growth due to rapid data center development.

Small towns experience economic growth due to rapid data center development.

Rapid Growth of Data Centers in Small Towns

Across the United States, a significant boom in data center construction is transforming small towns into hubs for digital activity. This surge is largely driven by increasing demands for artificial intelligence, cloud computing, and data storage, prompting developers to rush for land, resources, and utilities.

Currently, about 1% of U.S. counties—around 33 counties—are responsible for 72% of data center activities, according to a recent Goldman Sachs report. Interestingly, this data landscape is changing almost daily.

Take, for instance, Newton County in Georgia, located roughly an hour east of Atlanta. It’s noticeable the way this area is evolving.

Investment in Data Centers

Newton County hosts part of Meta’s Stanton Springs campus, which has undergone massive expansion since its inception in 2018. An exclusive preview of the facility revealed an impressive 1,000-acre site, featuring eight enormous buildings, each as long as four football fields and containing rows of high-speed servers. These facilities, which process data from Meta’s platforms like Facebook and Instagram, operate continuously.

This is just one of 26 data centers either under construction or already operating in the U.S., with more anticipated.

“I’ve been in this sector for more than 20 years, and I’ve never seen such a strong focus on data centers,” said KC Timmons, Meta’s Director of SiteOps Global Operations. “It’s innovative. There’s a lot we can achieve.”

While Meta’s presence has been largely beneficial to the local economy—creating hundreds of jobs and generating long-term tax revenues—it hasn’t been without its critics. Some locals are skeptical, suggesting that the promises made by developers might not fully align with reality.

Newton County Commissioner Leanne Long expressed her doubts, claiming, “It’s all picture cake. These developers come with grand promises about zoning and utilities, but it’s mostly smoke and mirrors.”

Long, who also works in real estate, wonders about the long-term implications of such rapid growth—what happens when the need for large buildings diminishes?

Newton County is becoming a hotspot for data centers, with 11 more projects currently being planned or constructed since January. Amazon has also bought land for a $25 million data center project, further signaling growth in the area. Local officials are already zoning additional sites without having long-term land use plans in place.

Some community leaders, like Selah Hall of the Newton County Industrial Development Authority, feel that it’s vital to be methodical in this growth. “We’re trying to bring everyone together and slow things down,” Hall noted. “It requires careful planning.”

The efficiency that data centers bring isn’t just about local jobs. Since Meta’s taxable operations began, the company has contributed $12 million in tax revenue, a considerable sum that’s projected to grow as the construction progresses. Before Meta, the land had sat under government ownership and was tax-exempt for nearly two decades.

Meta also engages in community initiatives, such as workshops for local businesses. Meanwhile, Amazon is working with local schools to set up a grocery store for students.

Yet, for residents, the transition hasn’t felt entirely positive. They see some gaps between what was promised and the reality of development. For example, concerns linger about water recyclinginitiatives even as major companies get involved.

“This has suddenly become a huge deal since the start of the year,” said Commissioner Long. “Just a year and a half ago, no one even knew what a data center was. It feels overwhelming.”

Long clarified that the operations of Meta aren’t inherently problematic. The campus is situated in a business zone, hence not intruding on residential life. However, she has broader concerns about how future developments might impact home values and what could happen when these large buildings become unoccupied.

Residents like Lisa Miller, who lives near a former sawmill turned Amazon construction site, share their struggles. “We’re not a big company. The people here are really into farming,” she noted. The pace of change is remarkable and not always welcomed. There have also been incidents involving construction safety, including one case where an explosion damaged a neighbor’s home.

In response, Amazon has stated their commitment is to be a good neighbor, emphasizing the potential for job creation through their investments.

Energy concerns are looming as well. By 2030, data centers are projected to use around 8% of all U.S. electricity. This raises questions about the infrastructural investments needed to support this growing demand.

Despite the mixed feelings surrounding this growth, both local leaders and residents agree on the importance of not outright rejecting the industry. Instead, there is a push for a more deliberate approach to planning for what lies ahead.

Meta aims to set the standard for responsible development and has made commitments to renewable energy and sustainable practices.

“If I could impart one message to the nation, it would be to think this through,” Miller said. “Don’t just drop these projects in on any available land.”

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