Could a Data Center Replace Your Town's Property Taxes?

inductionheads · x · 2026-08-21

This is a fun exercise in computing the economics of data centers. U.S. local governments collected $1,965 per resident in property taxes in 2023, totaling $40 million annually for a 20,000-person town. Assuming a 2% commercial tax rate and current hyperscale DC construction costs of $9.5-$13/W, the post calculates how large a facility is needed to replace this revenue stream.

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