Why Small Towns Chase Data Centers Despite Limited Job Creation

Altoona’s mayor Dean O’Connor recalls the city’s early adoption of a 1.5-million-square-foot Meta campus, which has generated roughly 400 support roles but delivered substantial tax revenue and an $11 million water-infrastructure upgrade. In Norwich, mayor Swarnjit Singh emphasizes that the true value of a data center is measured by fiscal contributions and the ability to attract ancillary industries, not by permanent staffing levels.

De Soto’s mayor Rick Walker points to a forthcoming 600-megawatt facility that will add about 50 permanent jobs while providing an estimated $300 million in tax revenue over 25 years, enabling the city to finance a new community center. Academic and industry research corroborates that direct employment is modest, with broader economic effects stemming from indirect jobs and long-term tax bases. Nonetheless, municipalities often offer tax abatements to lure developers, a practice critics argue undercuts the very revenue gains they seek. Despite growing public resistance, officials like O’Connor remain eager for additional data centers, citing the steady fiscal foundation they create.