A new study finds data centers deliver almost none of the local economic gains their backers promise — bad news for towns courting them, and fuel for a growing political backlash.

• Counties that landed data centers saw no gain in local jobs, new businesses, or overall financial health compared with counties that nearly got one.
• Building a data center takes over a thousand workers, but running it takes only 20 to 30 — so the usual ripple effect of new local suppliers and services never happens.
• Home price growth slows because people don't want to live near them, which pushes up local government borrowing costs and squeezes schools that depend on property taxes.
• In dry areas, bond markets are charging more for water projects, signaling worry about the strain on water systems.
• Politicians are catching up: a Bernie Sanders–backed bill to pause AI development polls at 68% support, including a majority of Republicans, and Ted Cruz is working on bipartisan rules for catastrophic AI risk.

Outlook: Expect more local fights over data center approvals and more AI bills in Congress, though the data only runs through 2025 and the industry says its payoff takes five to ten years.