{"id":25529,"date":"2025-11-16T15:04:06","date_gmt":"2025-11-16T20:04:06","guid":{"rendered":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/?p=25529"},"modified":"2025-11-16T15:04:08","modified_gmt":"2025-11-16T20:04:08","slug":"should-you-allow-a-data-center-in-your-county","status":"publish","type":"post","link":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/ai\/should-you-allow-a-data-center-in-your-county.html","title":{"rendered":"Should You Allow a Data Center in Your County?"},"content":{"rendered":"\n

Key Takeaways:
\u2022 Data centers support tax revenue, jobs, and long-term economic stability
\u2022 They also require significant power and water, which can strain local infrastructure
\u2022 The US faces rising global competition, with China and other countries rapidly expanding data center capacity
\u2022 Local approvals increasingly influence national competitiveness as AI, cloud, and research workloads scale
\u2022 Strong zoning, sustainability rules, and community benefits can help counties gain upside while managing risks<\/p>\n\n\n\n

Counties across the country are being asked to approve new data centers at a moment when digital infrastructure has become part of global competition. These facilities power AI training, cloud services, research, logistics, finance, and nearly every modern industry. As China and other nations continue to build data centers at a rapid pace, the US is under pressure to expand capacity. That expansion can only happen somewhere, and local communities are now deciding whether to participate in this landscape or cede growth to other regions.<\/p>\n\n\n\n

The appeal is clear: data centers can deliver stable, long-term tax revenue. They are capital-intensive projects that typically invest hundreds of millions or even billions of dollars into land, equipment, and power infrastructure. That investment can strengthen local budgets and support schools, emergency services, and public programs. Construction generates temporary jobs, often union labor, while the operational phase creates high-paying technical, security, and administrative roles. Counties that have struggled to secure long-term employers view these facilities as anchors that help stabilize and diversify their economies.<\/p>\n\n\n\n

Beyond revenue, hosting a data center can place a community inside the digital supply chain. As demand for AI training clusters grows, counties with approved zoning and reliable infrastructure become increasingly attractive to hyperscalers and research institutions. Data centers tend to attract supporting businesses like fiber providers, electrical suppliers, logistics firms, and specialized service vendors. When multiple facilities are built in a region, the effect can create clusters that draw investment by companies that want to be near major compute resources.<\/p>\n\n\n\n

These benefits matter even more in a global context. China, in particular, has aggressively expanded its cloud and AI infrastructure in recent years. Large-scale computing capacity is becoming a competitive advantage for research, manufacturing automation, cybersecurity, and national economic growth. If the US restricts data center development at the local level, it risks falling behind countries that are building digital infrastructure at unprecedented speed. In many ways, county-level choices now contribute directly to national competitiveness. If these facilities do not get approved in one region, they will likely be built elsewhere, sometimes overseas.<\/p>\n\n\n\n

Still, the concerns are real and deserve careful attention. Data centers consume large amounts of electricity. A single facility can draw as much power as many thousands of homes. This puts pressure on local grids and can require utilities to build new substations or transmission lines. Residents sometimes worry that electricity prices could rise or that other types of economic development might be crowded out. Water usage is another point of tension. Traditional cooling systems can require substantial water, raising sustainability questions in drought-sensitive areas. While operators are increasingly adopting air-cooled or recycled-water systems, counties need clear commitments rather than assumptions.<\/p>\n\n\n\n

Environmental impact also enters the discussion. Construction requires heavy equipment and long build cycles that disrupt surrounding areas. Large buildings with few windows can alter the character of a region, especially when multiple sites cluster together. Backup generators needed for emergencies can contribute to noise and emissions. Without design guidelines or buffer requirements, facilities may not blend easily into rural or suburban landscapes.<\/p>\n\n\n\n

Another factor is the relatively small number of long-term jobs. After construction, a data center operates with fewer employees than a similarly sized manufacturing plant. Some residents question whether devoting hundreds of acres to facilities with modest staffing levels is the best use of land. Counties often address this through negotiations that tie approvals to infrastructure upgrades, renewable-energy commitments, workforce training, or community benefit programs.<\/p>\n\n\n\n

Quality of life questions matter, too. Traffic typically remains modest compared to distribution centers or factories, but counties must evaluate emergency access, noise levels, lighting, and the placement of power infrastructure. Public safety agencies need to understand how facilities manage risk, from cybersecurity protocols to generator testing schedules. A good approval process includes detailed conversations with first responders and utility partners.<\/p>\n\n\n\n

The question of whether to approve a data center becomes even more important when framed against global competition. AI models, national labs, biotech research, and advanced manufacturing all depend on high-density compute. If the US slows its buildout, researchers, companies, and entrepreneurs may turn to countries that offer greater capacity. Local governments understandably want to protect their residents and manage land responsibly, but rejecting these projects entirely may shift innovation and investment abroad. The challenge is finding a balance that safeguards communities while supporting national economic strength.<\/p>\n\n\n\n

Counties that navigate this well tend to implement clear zoning rules, environmental standards, water usage safeguards, and noise and design guidelines. They negotiate commitments on renewable energy, heat reuse, or efficiency measures. They conduct independent assessments to confirm the impact on roads, water, and power. They also ensure that benefits flow to the community, not just the operator.<\/p>\n\n\n\n

The most effective strategy is a transparent, deliberate process. When counties set expectations early, developers can adapt their plans to fit local priorities. When communities have clear information, they can evaluate whether the project aligns with their long-term vision. This approach helps ensure that growth is sustainable, responsible, and shared.<\/p>\n\n\n\n

Every data center has to be built somewhere, and global competitors are expanding at speed. The question for counties is not simply whether they want digital infrastructure, but what terms best protect their residents while contributing to the national and regional economy. A thoughtful approach lets communities capture economic benefits, support national competitiveness, and maintain control over how data centers shape local life.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

If you liked this post, you\u2019ll love one of the the leading global business communications and technology events since 1999, the ITEXPO #TECHSUPERSHOW<\/a>, Feb 10-12, 2026 Fort Lauderdale, Florida.<\/p>\n\n\n\n

Don\u2019t forget the collocated MSP Expo<\/a> \u2013 just for managed service providers!<\/p>\n\n\n\n

Aside from his role as CEO of TMC<\/a> and chairman of ITEXPO<\/a> #TECHSUPERSHOW Feb 10-12, 2026, Rich Tehrani is CEO of RT Advisors<\/a> and a Registered Representative (investment banker) with and offering securities through Four Points Capital Partners LLC <\/a>(Four Points) (Member FINRA\/SIPC). He handles capital\/debt raises as well as M&A. RT Advisors is not owned by Four Points.<\/em><\/p>\n\n\n\n

The above is not an endorsement or recommendation to buy\/sell any security or sector mentioned. No companies mentioned above are current or past clients of RT Advisors.<\/p>\n\n\n\n

The views and opinions expressed above are those of the participants. While believed to be reliable, the information has not been independently verified for accuracy. Any broad, general statements made herein are provided for context only and should not be construed as exhaustive or universally applicable.<\/p>\n\n\n\n

Portions of this article may have been developed with the assistance of artificial intelligence, which may have contributed to ideation, content generation, factual review, or editing<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Key Takeaways:\u2022 Data centers support tax revenue, jobs, and long-term economic stability\u2022 They also require significant power and water, which can strain local infrastructure\u2022 The US faces rising global competition, with China and other countries rapidly expanding data center capacity\u2022 Local approvals increasingly influence national competitiveness as AI, cloud, and research workloads scale\u2022 Strong zoning,<\/p>\n","protected":false},"author":44,"featured_media":25530,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194,3147],"tags":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/25529"}],"collection":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/comments?post=25529"}],"version-history":[{"count":1,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/25529\/revisions"}],"predecessor-version":[{"id":25531,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/25529\/revisions\/25531"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/media\/25530"}],"wp:attachment":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/media?parent=25529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/categories?post=25529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/tags?post=25529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}