Gray Matter TX

Data Centers are WANTS not NEEDS


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The Data Center boom is a bubble.  The data does not align with demand; it is a rush to market on a major hedge made by massive developers to meet the “future” data demands of AI, crypto, and others.  However, the data needs to align with demand, as in the tech bubble of the late 90s and the housing bubble of 2008.  Data Centers will be overbuilt and suck the life out of rural communities.  There is one simple reason they are targeting rural communities, and it has nothing to do with “future data needs.”  They are here for one reason only - access to an easy negotiation:

  • RED FLAG There are no “independent” studies on the long-term effects, only purchased reports from lobby groups and politically incentivised tech watchdogs
  • There are no job opportunities at Data Centers.
  • Construction will not be done by local contractors.
  • The required power will crush small rural grids, forcing homeowners to pick up the tab for the revised infrastructure.
  • The amount of water needed will force new wells and demands that local municipalities cannot meet.
  • If you lose the negotiation before the agreements are signed...
  • Charge the data center an exceptionally higher property tax.
  • Add infrastructure needs to improve your community (sewage treatment, wells, road repair, traffic signals etc)
  • DO NOT provide any abatements based on “guaranteed jobs” - these do not exist, and there are plenty of examples of this in Iowa and Montana.

Stay close to these conversations and let your voice be heard.  Help your local officials and state reps with these negotiations and be a part of the conversation.  

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Gray Matter TXBy David Apple