Science & Tech · Science & Environment · 2 hrs ago

Data centers may raise local power bills and weaken housing markets

Data centers may raise local power bills and weaken housing markets

Data centers store information and run servers that support online platforms and artificial intelligence, and governments compete to attract them.

Two studies point to costs for nearby communities, including weaker housing markets and higher household electricity bills.

In US areas where a data center is built, home-price growth is 1.3 percentage points lower than in other areas one year after the project is announced, and the gap reaches 3.1 points after three years.

Local household electricity costs rose 3.1% in counties where a data center was built, while electricity use rose 1.9%.

The facilities may bring some technical-service jobs, but the employment benefit is limited, with no effect found in retail.

The costs may outweigh some expected local gains, even as governments offer incentives in hopes of creating jobs and supporting regional growth.

The government is preparing rules for the sector as protests over water use, noise and pressure on local surroundings spread globally.

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