Economic and Community Benefits of Datacenters

Datacenters significantly boost local, regional, and national economies by generating tax revenues from business, income, goods and services taxes, and infrastructure levies. These funds support public services and improve community well-being.

Datacenter developments often lead to infrastructure upgrades—such as roads, transportation, and utilities—that benefit the wider community. They also improve internet connectivity and access, especially in underserved areas.

Examples:

• AWS in Virginia: Over $35 billion invested since 2011, making AWS a major tax contributor supporting schools, emergency services, and infrastructure.

• Microsoft Airband Initiative: Expands broadband access to rural and underserved U.S. communities by partnering with local ISPs, leveraging datacenter infrastructure to benefit residents, businesses, and schools.

Datacenters and Community Engagement

Datacenters play a crucial role in boosting local, regional, and national economies by generating tax revenues that support public services and community well-being.

Microsoft’s Community Pledge exemplifies responsible datacenter operation by focusing on:

• Supporting climate goals (carbon negative, water positive, zero waste by 2030)

• Advancing local economic, social, and environmental benefits

• Being a respectful, responsible neighbor through active community partnerships

Community Engagement is key throughout a datacenter’s lifecycle, balancing operational needs with minimizing impacts like noise, land use, and habitat disruption. Transparency and communication are emphasized via project updates and public resources.

Independent research, such as the 2024 CyrusOne Listening to Communities Report, helps understand public perceptions, acceptance factors, and expected community benefits, guiding better engagement strategies.

Examples of positive community integration:

• Google in Tennessee converted unused land near datacenters into parks and recreational spaces.

• Microsoft in Quincy, Washington partnered to develop local sports complexes, enhancing community health and connection.

Such efforts, alongside local planning requirements, foster trust, improve datacenter developments, and create shared value for communities.

Community Engagement by Datacenter Developers

Datacenter developers and operators actively support local communities through partnerships in education, philanthropy, and local business growth.

Educational Partnerships: They collaborate with schools, universities, and vocational programs to boost STEM education and develop skilled local workforces. Initiatives often include scholarships, training programs, mentorship, and hands-on experience.

• Examples: Google’s STEM programs in the Netherlands and Microsoft’s global Datacenter Academy provide training and certifications to prepare students for datacenter jobs.

Philanthropic Activities: Datacenters contribute through employee volunteering, donations, community funds, and support for essential services like clinics, schools, and clean water projects.

• Examples: Equinix’s youth tech training in Brazil, Amazon’s donations to South African rural communities, and Microsoft’s funding of local sustainability projects in Ireland.

Local Business Support: Datacenters stimulate local economies by sourcing from local suppliers and contractors and supporting innovation hubs that help startups and entrepreneurs leverage cloud and datacenter opportunities.

• Example: Meta’s local sourcing and support for irrigation projects in New Mexico, USA.

Opportunities and Community Collaboration in Datacenter Development

Datacenters offer opportunities to address key community priorities like energy and land use optimization and social equity by partnering with local governments and NGOs to create shared value and environmental improvements.

Energy Optimization: Datacenters invest in renewable energy and grid modernization to support sustainable resource use and strengthen local grid capacity.

• Example: Microsoft’s collaboration in Quincy, Washington, upgraded the electrical grid with smart technologies to improve reliability and integrate renewables.

Land Use Optimization: Innovative approaches like vertical datacenters and repurposing old industrial sites minimize land impact and support sustainable development.

• Example: Google converted a former paper mill in Finland into a datacenter, preserving new land.

Waste Heat Recovery: Datacenters capture excess heat to supply local district heating, enhancing energy efficiency and community benefits.

• Examples: Microsoft in Denmark heats 6,000 homes with waste heat; Equinix in Finland channels waste heat into the district heating network.

Supporting Environmental Infrastructure: Programs like Microsoft’s Community Environmental Sustainability (CES) invest in nature-based solutions such as urban forestry and ecological restoration to improve local ecosystems, promote equity, and engage diverse community members.

Hyperlocal Datacenters: Smaller datacenters near users reduce energy use and emissions, improve connectivity, and boost local economies.

• Example: EdgeConneX builds localized datacenters near urban hubs to enhance digital access and community benefits.

Community Resilience and Energy Support: Datacenters provide backup power during emergencies, help stabilize grids through demand-response programs, and ensure critical service continuity during disasters.

• Examples: AWS supported emergency services during Australian bushfires; Facebook in Oregon adjusts energy use for grid stability; Equinix in Japan maintains operations during earthquakes.

Smart Community Integration: Datacenters are integral to smart city projects that improve energy use, urban planning, and public safety.

• Example: Alibaba’s “Smart City” initiative in China uses datacenters to optimize traffic flow and reduce energy consumption.

Economic and Community Impact of Datacenters

As digitalization grows, the demand for datacenters rises, bringing substantial benefits to local communities and economies. Datacenters are a key part of the evolving ICT sector, creating high-value, skilled jobs and driving economic growth.

Key Contributions:

• Job Creation: Datacenters offer direct employment for IT specialists, engineers, operations staff, and indirect jobs in construction, logistics, and maintenance. For example, Microsoft’s datacenters in Washington currently employ over 400 people, with plans to grow to 673 by 2026, plus millions of construction work hours.

• Economic Growth: Large investments in datacenter construction and operations boost local economies, create new supply chain opportunities, and support growth in ICT and digital services.

• Skills Development: Programs like Microsoft’s Datacenter Academy train local talent, addressing skilled labor gaps and enabling community members to access high-value roles.

• Infrastructure Support: Datacenter development drives improvements in local infrastructure, benefiting wider community growth and innovation.