Data Centers: Who Benefits, and Who Pays?

By Marvin Dixon | VMGReview.com

Data centers are becoming a major issue in our communities, and citizens deserve to understand both their benefits and their costs. Before welcoming these facilities, we should ask a basic question: What will this development mean for the people who already live here?

Data centers house the computer equipment that supports online services, communications, business operations, and artificial intelligence. They are part of the technology many of us use every day.

But providing useful services does not remove the responsibility to protect neighboring communities.

The potential benefits

Data centers can bring construction work, permanent technical jobs, investment, and tax revenue. However, citizens should ask how many lasting jobs a particular project will create and how much tax revenue will remain after any incentives or exemptions. Georgia Power identifies tax revenue, capital investment, and infrastructure improvements as major economic benefits of these facilities.

A large investment announcement should begin the public discussion. Residents still deserve a clear accounting of what their community will receive.

The costs deserve equal attention

Electricity demand is a serious concern. The U.S. Department of Energy reported that data centers used about 4.4% of the nation’s electricity in 2023 and projected that their share could reach approximately 6.7% to 12% by 2028. Serving that growth requires careful planning to maintain affordable, reliable power.

Water use also matters. Some cooling systems consume substantial water, although the amount varies with the equipment, climate, and design. Citizens should request a project’s expected water consumption and conservation plan before it is approved.

Residents should also ask about equipment noise, backup generators, construction traffic, and the distance between the facility and nearby homes. These questions deserve answers specific to the proposed site.

Will you and I pay higher electricity bills?

This is my biggest concern.

Over time, a data center’s operating expenses may increase. But its own expenses do not automatically become higher electricity rates for households. The issue is whether the utility’s costs of supplying that facility—such as additional power generation, transmission lines, and substations—are fairly assigned to the customer creating the demand.

In Georgia, the Public Service Commission approved a rule in January 2025 allowing Georgia Power to charge new large-load customers, including data centers, for costs associated with serving them. The stated purpose is to protect existing customers from cost shifting.

Those protections matter. Citizens should still demand evidence that they work. We need understandable explanations of who pays for expansion, how ongoing costs are divided, and who bears the financial risk if a project closes or uses less electricity than expected.

Families, retirees, and small businesses should not be left carrying expenses that properly belong to a large corporate customer.

Citizens deserve a voice before decisions are made

Before approving a data center, officials should answer these questions:

• How many permanent jobs will it create?
• What tax incentives will it receive?
• How much electricity and water will it require?
• Who will pay for the infrastructure needed to serve it?
• What enforceable protections will safeguard residents?

I believe communities can welcome technology while demanding fairness, transparency, and accountability. Our elected officials should make the benefits and obligations clear before commitments are made.

Progress should improve our lives. Citizens deserve to know whether a proposed data center will deliver on that promise—and who will pay the bill.

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Marvin Dixon/Founder

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