What Happens When Data Centers Come to Town?

July 2025

By: University of Michigan’s Science, Technology, and Public Policy Program

https://stpp.fordschool.umich.edu/sites/stpp/files/2025-07/stpp-data-centers-2025.pdf
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Data Centers

This briefing paper discusses the growth of data centers and their impacts on the environment and local communities. It discusses data centers' significant water and energy use, their contribution to keeping fossil fuel plants open, and the fiscal impacts of tax exemptions on communities. The paper also offers policy recommendations for states with tax breaks already in place.