Economists update data center local-impact paper with new instrument from historical fiber connectivity

Afinetheorem · x · 2026-09-22

Economist Diana Van Patten's team has updated their empirical paper on the local economic effects of data centers, introducing a new instrument for data center development that leverages historical determinants of fiber connectivity and foreign growth in large-scale facilities. The estimated effects are substantial and qualitatively align with their earlier draft.

The post also cites Alex Olegimas's commentary on reading empirical AI economics papers: clean-identification research prized by top journals can take years or decades to get right, but the AI era also demands faster, imperfect signals right now.

Original post →

More from AGI Musings

AGI Musings channel →