Growth of Data Centers Requires New Policies To Mitigate Local Community Impacts

As the AI industry continues to expand, so does the demand for data centers. While state and local governments often approve their construction in hopes of economic gains—such as increased tax revenue and job creation—these benefits frequently fall short once the centers are built. A new U-M study, coauthored by researchers at the Ford School of Public Policy, examines the uneven distribution of benefits and burdens data centers bring to local communities and offers policy recommendations to help strike a better balance.