When Profit Meets Proximity: Data Centers, Small Towns & Local Impact

In many places today, data centers are marketed as economic lifelines. But for small towns physically and politically close to these developments, the picture often looks less promising.

A rural landscape with a water tower is overlaid by a glowing network of interconnected points, symbolizing the integration of digital technology and connectivity in agriculture.

1. Where Are the Jobs, Really?

Arkansas has seen a 242% jump in data center employment between 2018 and 2024. Sounds impressive — until you realize it still represents only about 4,300 jobs statewide. So while the numbers appear bold, they often don’t deliver meaningful long-term impact for the average resident.

2. Tax Incentives Without Accountability

Communities have competed fiercely for data center placement offering 65% property tax abatements for 30 years in exchange for just around 50 jobs. That’s a huge public investment for a very small direct employment benefit.

3. Higher Energy Costs for Neighbors

Data centers are energy guzzlers. A recent report shows that between 2024 and 2025, added power usage from data centers accounted for $9 billion — or 174% of increased power costs — with average monthly bills rising by about $25.

In nearby states like Kansas and Missouri, similar data center growth has driven residential electricity rates up around 6.5%.

4. Lack of Transparency Isn’t Just Frustrating — It’s Costly

Many utility contracts and data usage projections are kept confidential, making it hard to know how much public money is being redirected to support these facilities. In Louisiana, for example, utilities have quietly expanded capacity for data centers leaving everyday customers to foot the hidden bill.

5. The Human Side: Community Voices Matter

What resonates most is the lived experience. As one Arkansas Valley resident put it:

“Those concerned about preserving the equality of rural life… might rightfully be concerned about the enormous, windowless structures… beginning to dot the rural landscapes of America.” (Source)

Families who’ve poured their lives into these places for farming, raising kids, building local businesses deserve a voice in how development shapes their home.

What Comes Next: Advocacy That Honors People and Land

• Demand transparent impact studies before deals are sealed.

• Push for shared-benefit agreements that link incentives to community outcomes.

• Stay engaged in regional utility discussions, where rate changes are often decided.

• Tell the story because local voices can bridge the gap between policymakers and everyday life.

You don’t have to feel powerless. Advocate for transparency, fairness, and sustainability. Subscribe to our newsletter for more real-world stories, tools, and ways to take action on issues that matter to rural communities like yours.