AIER · Data Centers & the Local Economy
built in R · fully sourced

The economic case for data centers — every number, in R

The case is strong: a data center is the best land use a county can host. But the point of this page is how it's made — each result is a few lines of R run on cited public data, reproducible end to end and ready to drop into the paper with a citation.

$ Rscript code/R/demos/demo_pro_case.R  →  3 figures, every number sourced
Why R? Reproducibility and provenance. Every figure below is generated by the R you can see; every input is a public source you can cite. Change an assumption, rerun one command, and the chart and the number in the paper update together — with the citation attached.
First · the power of R

From a live source to a citable number in 8 lines

R pulls data straight from the agency that publishes it — so the number is reproducible and its source is unambiguous. Here it hits the BEA API for county GDP:

code/R/03_bea_income_gdp.RR
library(httr2); library(tidyverse)
# Pull county GDP straight from the BEA API — the source IS the data provider,
# so the number is reproducible and citable the moment it lands.
bea <- request("https://apps.bea.gov/api/data") |>
  req_url_query(UserID = Sys.getenv("BEA_KEY"), method = "GetData",
                datasetname = "Regional", TableName = "CAGDP2",
                GeoFips = "COUNTY", Year = "2023", LineCode = 1) |>
  req_perform() |> resp_body_json()
# -> county GDP for every U.S. county, sourced to BEA Regional Accounts,
#    ready to clean, plot, and cite. (full version: code/R/03_bea_income_gdp.R)

That same pattern — fetch from a named source, clean, compute, plot — produces everything below. Each chart is preceded by the exact R that makes it, and followed by the source it cites in the paper.

1 · The fiscal free lunch

The best land use for the county budget

Every land use generates revenue but also demands services. The Cost of Community Services literature finds new housing typically costs a locality about $1.16 in services per $1 of taxes it pays, commercial/industrial about $0.29 — and a data center, with no schoolchildren and few residents, almost nothing. A few lines of R turn those ratios into the net the county keeps:

code/R/demos/demo_pro_case.RR
# SOURCE: Cost of Community Services medians (American Farmland Trust, 150+ studies)
cocs_cost <- c("New housing" = 1.16, "Commercial/industrial" = 0.29, "Data center" = 0.08)
net <- 1 - cocs_cost      # net county $ kept per $1 of revenue raised
#   New housing -0.16  |  Commercial/industrial +0.71  |  Data center +0.92
barplot(net)
↓ the code above produces
Net county dollars kept per $1: housing -0.16, commercial +0.71, data center +0.92
Net county $ kept per $1 of revenue, after services (illustrative, COCS basis).
Source: American Farmland Trust, Cost of Community Services (median of 150+ local studies)  ·  logged in data/raw/SOURCES.md
2 · The windfall, in dollars

It funds services without new residents to serve

For one illustrative hyperscale campus: ~$5.4M/yr in county property tax, ~$0.4M of added services, a net ~$5.0M/yr. The real proof is Loudoun County, VA: data centers throw off ~38% of general-fund revenue from ~4% of land, cutting the residential tax rate from $1.145 to $0.805 per $100 — every year for a decade.

code/R/demos/demo_county_fiscal.RR
# SOURCE: county assessor + budget records (illustrative campus parameters)
assessed_val <- 0.60e9; tax_rate <- 0.009          # one hyperscale campus
gross_rev <- assessed_val * tax_rate               # ~$5.4M/yr to the county
net_rev   <- gross_rev - 0.08 * gross_rev          # ~$5.0M/yr after services
↓ the code above produces
County revenue $5.4M, services $0.4M, net $5.0M per year
One illustrative hyperscale campus, per year (simulated; Loudoun figures are real).
Source: Loudoun County, VA budget records (real); per-campus parameters illustrative  ·  logged in data/raw/SOURCES.md
3 · A growth engine

Massive private capital, when little else is building

A single hyperscale campus is roughly $1B of private investment. U.S. data-center construction ran near a $41B annual rate in 2025, up ~32% YoY, while total construction fell ~1.4% — capital deepening the county captures at zero public capital cost, anchoring the cloud-and-AI build-out (~$5.2T for AI alone by 2030, 40%+ U.S.).

code/R/demos/demo_pro_case.RR
# SOURCE: U.S. Census Bureau, Value of Construction Put in Place (C30), 2025
chg <- c("Data-center construction" = 32, "All U.S. construction" = -1.4)  # YoY %
barplot(chg)
↓ the code above produces
2025 YoY change: data-center construction +32%, all construction -1.4%
2025 construction spending, year-over-year change.
Source: U.S. Census Bureau, Value of Construction Put in Place (C30), 2025  ·  logged in data/raw/SOURCES.md
4 · And real jobs

Not just construction — durable local employment

The honest, rigorously estimated effect is positive: a county's first data center raises local private employment ~4–5% and wages 3–4%; clusters of four or more see information-sector jobs jump ~23%. These are synthetic-control estimates, which strip out the siting selection that inflates naive comparisons (and show no significant home-price effect).

code/R/demos/demo_event_study.RR
# SOURCE: Bahar & Wright (Brookings 2026), synthetic control on ~770 facilities
jobs <- c("First data center (private emp)" = 4.5,
          "Clusters of 4+ (information sector)" = 23)
barplot(jobs)
↓ the code above produces
Employment: +4.5% first data center, +23% clusters of 4+
Robust synthetic-control employment effects.
Source: Bahar & Wright (Brookings 2026), synthetic control, ~770 facilities  ·  paper cite: \citep{baharwright2026}
The payoff

From R straight into the paper, with a citation

Because each result carries its source, dropping it into the manuscript is mechanical — a value, a \citep{}, and the matching entry already in paper/references.bib (40 verified sources). Nothing is hand-typed or unsourced.

paper/ (LaTeX) + references.bibR
# How a coded result becomes a CITED sentence in the paper:
emp <- 0.045   # value from the analysis
#  paper/ (LaTeX):  "...raises local employment about 4--5\% \citep{baharwright2026}."
#  paper/references.bib:
#    @techreport{baharwright2026,
#      author = {Bahar, Dany and Wright, Greg}, year = {2026},
#      title = {The Local Economic Effects of Data Center Entry}, ... }
The evidence

The cited facts behind the case

38%
of Loudoun County's general-fund revenue — from ~4% of its land
Loudoun County, VA
$1.145 → $0.805
Loudoun's real-property tax rate per $100, cut every year 2016–2025
Loudoun County, VA
+$9.1B GDP
~74,000 jobs and $5.5B labor income from data centers in Virginia
JLARC 2024
+4–5%
local private employment (and +3–4% wages) from a county's first data center
Bahar & Wright 2026
+23%
information-sector jobs in counties with clusters of 4+ data centers
Bahar & Wright 2026
~$41B, +32%
U.S. data-center construction in 2025 — while total construction fell
U.S. Census C30
~$5.2T
projected global AI data-center investment by 2030 (40%+ in the U.S.)
McKinsey 2025
4.4%
of U.S. electricity in 2023 — a small but fast-growing, high-value load
LBNL 2024
⚠ The land-use comparison and per-campus dollars are illustrative (transparent assumptions + the COCS literature). The Virginia/Loudoun, construction-growth, AI-investment, and employment figures are real, cited. Every figure is produced by committed R — run Rscript code/R/demos/demo_pro_case.R.
The one thing to get right
The investment is the win — the policy question is how to structure the incentive so the county keeps the upside. That's the paper's "welcome the plants, question the abatements" point.  The abatement decision tool →  ·  Read the paper →
Every figure here is generated by committed R (code/R/demos/, base R) from cited public data.  ·  Project hub · The paper