Why rural Florida should consider data centers | Opinion

• Some rural Florida communities are considering moratoriums on data center development.
• Data centers can provide jobs, tax revenue, and long-term economic investment for rural areas.
• The author argues that communities should carefully evaluate data center proposals rather than dismissing them outright.

Races aren’t won from the sidelines.

Yet some rural communities are sidelining themselves as the nation competes for the next generation of economic investment. In Florida, I’ve noticed a growing trend of local governments considering moratoriums on data centers before they’ve had the opportunity to fully evaluate the pros and cons these projects may bring.

To be clear, every community has the right and responsibility to carefully review proposed developments. Local leaders should ask hard questions. Residents should have a voice. And counties should establish reasonable standards that protect their quality of life and natural resources.

But there is a significant difference between thoughtful review and closing the door before opportunity even knocks.

The reality is that many rural counties are confronting population decline, smaller tax bases and fewer job opportunities for their residents. These communities must compete for investment in a rapidly changing economy.

Across the country, states are actively pursuing data centers and the infrastructure that supports artificial intelligence, cloud computing, cybersecurity and advanced technology. It is clear that data centers and artificial intelligence are now national security issues. Billions of dollars in private investment are being directed toward communities that are willing to engage in the conversation.

This investment translates into jobs, tax revenue, infrastructure improvements and long-term economic competitiveness for the communities that need it the most.

Economists estimate that construction of a single one-gigawatt data center could generate billions of dollars in economic activity, support tens of thousands of construction jobs and produce hundreds of millions in state and local tax revenue.

More importantly, the benefits don't end when construction crews leave. Data centers continue generating jobs, investment and tax revenue for years, providing local governments with resources to invest in priorities that matter to residents. This is especially important given the impacts current property tax initiatives will have on our rural communities.

We don't have to imagine what that looks like. Communities across the country have seen the results:

• In Catawba County, North Carolina, Apple's data center has become the county's largest taxpayer. County records show Apple accounts for nearly 5% of the county's entire tax base, generating an estimated $6 million annually in county property taxes that help support schools, public safety, and other local services.
• In Grant County, Washington, data center investment helped support the construction of a new school, hospital and fire station while allowing local officials to significantly reduce property tax rates.

Every community is different, and what works in North Carolina or Washington may not be appropriate for every county in Florida.

But these examples demonstrate an important point: data centers are major economic engines capable of creating long-term benefits for the communities that choose to compete for them.Each generation has infrastructure that drives economic growth. It appears that data centers will be ours.  

A data center might not be the right fit for every rural community. But neither were manufacturing facilities, distribution centers, railroads, airports or industrial parks.

The question is not whether every project should be approved. The question is whether communities should refuse to consider an entire category of economic opportunity before they fully understand its potential.

When major transportation corridors were developed, some communities embraced them while others hesitated. When broadband infrastructure expanded, some areas moved aggressively to compete while others lagged behind. Today, access to digital infrastructure has become just as important to economic growth as access to highways, ports and rail lines.

Many of our rural counties continue to face challenges that urban areas often do not. We must work to diversify local economies. We must seek opportunities that allow young people to build careers close to home and look for ways to strengthen tax bases without placing additional burdens on residents.

That is why rural Florida should be careful not to confuse caution with inaction.

Our communities deserve the chance to weigh the facts, hear from experts, negotiate strong agreements and determine what works best for their future. What they do not deserve is to be removed from consideration before those discussions can even occur.

Richard Williams is the Chair of the Florida Rural Economic Development Association (FREDA).

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