In a recent speech addressing Artificial Intelligence, Senator McCormick referred to AI data centers as “economic engines”. I’m sure the senator believes this because all the AI lobbyists are saying it, but is it true.

Will an AI data center, or any data center for that matter, really give a boost to the local economy? As with anything economic, the answer is not as simple as you would be led to believe.

Construction of one of these behemoths would indeed create many jobs. The problem is that these are highly specialized jobs and most of them would be filled by people from out of the area. They would come here temporarily, driving up prices, especially rent and hotel and restaurant prices. That would hurt the average citizen who was just living here minding their own business. While it would be a boom for the hospitality industry, that boom would be temporary and the harm it would do to the rest of the area economy would be devastating when the construction crews leave.

As the data center ramps up operation, it will drive up prices of utilities, especially electricity and water,

The number of jobs in an active data center are minimal and many of those will be filled remotely, meaning that all the other impacts will be for nothing.

There is one bright spot economically from a data center. A million square foot building full of computers would significantly raise the property value of that piece of land expanding the tax base. Unfortunately, that would probably be negated by naïve, ignorant or crooked politicians granting the data center tax breaks to entice them to come and ruin the economy.

I’m not saying that we should forbid data centers, but if one is to be built in the area, certain requirements should be met. First, NO tax breaks. Since taxes are the only thing that this enterprise would contribute to the area. Next, all power requirements for the data center should be provided by the builder. This could be done by generating onsite or by paying to build additional capacity on the grid supporting it. Third, Water consumption must be limited. Cooling water should be 100% recycled.

If these requirements are too burdensome, then they are welcome to build somewhere else. Our community is ours and we have no obligation to invite harm.

PAUL RINKER

Montoursville

Submitted by Virtual Newsroom