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Data centers and AI spark mixed reactions in rural places, Fed presidents say
Summary
Reserve Bank presidents reported that some rural communities welcome data centers for tax base gains and reuse of vacant space, while others worry about power demands, limited long‑term job creation and local disruption.
Panelists described both the promise and the trade‑offs of data‑center and AI investments in rural areas.
Phil recounted visits where community leaders raised concerns about visual impacts, power lines and whether the local workforce would benefit beyond construction; he said some communities value the tax base while remaining skeptical of lasting local employment. Susan pointed to a Lancaster example: redevelopment of an empty warehouse into a data center with a community benefits agreement that the panelists said expects roughly 350 ongoing jobs. Panelists cautioned that public sentiment about data centers is a "moving target," and that communities, developers and Reserve Banks need to negotiate energy, workforce and visual‑impact concerns upfront.
Panelists also gave examples of productive AI or automation use in rural industry—notably a lumber mill using AI sorting because it could not hire specialized workers—demonstrating that small producers can adopt technology to sustain demand and broaden employment opportunities.
The presidents recommended early community engagement, careful assessment of electricity and water demands, and combining workforce development with infrastructure planning when pursuing data‑center investments.
