Turning the data center boom into long-term, local prosperity | Brookings
Local leaders are questioning the credibility of Big Tech’s promises of spillover effects that will produce high-quality economic development beyond near-term construction.
Research February 5, 2026 The standard data center development model—speedy dealmaking and opaque negotiations—delivers short-term construction jobs and revenue, but little durable local economic upside. However, AI-era scaling and competition for mega-sites, grid access, and permits are giving regions new leverage. Early examples suggest that negotiated data center co-investments can anchor regional tech ecosystems. Regions should ask for this. Regions should treat data center negotiations not as isolated real estate transactions but as ecosystem-shaping moments that trade…
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