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At a recent groundbreaking for one of our data center campuses, three members of the community told our team, Great, were going to get a Trader Joes now. It may sound funny, but this is one small part of the data center effect. Having Starbucks and Whole Foods establishments in the neighborhood famously have been associated with higher property values. Data centers also boost the communities where theyre located, by creating jobs and supporting revitalization efforts, for example.Of course, the industry faces criticism too, often based on outdated perceptions that dont reflect advances in design and sustainability. But public opinion is shiftingpartly thanks to growing recognition of data centers vital role as the digital backbone of the economy and helping enable AI.Those who havent seen the data center effect in their community may soon. As of last year, the U.S. was home to almost 5,400 data centers. With facilities under construction expected to reach a new high in 2025 and demand projected to grow almost 10% annually through 2030, development is picking up outside urban cores and in secondary markets.Here are some of the overlooked ways that data centers are transforming the communities where they operate.1. They are driving the shift to green powerData centers are pivotal in the transition to green energy. This is part of a broader sustainability push, as the industry aims to shrink its environmental footprint while diversifying power sources to keep up with AIs demand.In fact, our company gets 100% of its electricity from zero-carbon renewable energy. To cool equipment, we leverage a closed-loop system that uses little or no outside water. We also prefabricate electrical and mechanical infrastructure, dramatically reducing waste and minimizing on-site construction.In our home state of Texas and elsewhere, data center providers are seeking more renewable options and funding their development. For example, hyperscalers Amazon, Google, and Microsoft invest heavily in clean energy sources such as wind, solar, and nuclear. By 2029, the U.S. sustainable data center market is expected to double, topping $35 billion.Thanks to such efforts, energy is becoming cheaper and greener, benefiting local communities and society at large. In 2023, 81% of new utility-scale renewable energy projects had lower costs than fossil fuelpowered alternatives. As the price of going green keeps falling, consumers will reap the rewards.2. Data centers boost the local labor marketLike any business that sets up shop in a community, data centers create jobs for local people.We see it in DallasFort Worth, where providers are generating employment opportunities and attracting new talent. As the industry grapples with a labor shortage, reskilling is crucial. In addition to hiring trade school grads to build and maintain our facilities, weve filled key technical roles by retraining skilled military veterans.The impact on local labor markets can be profound. In Virginia in 2023, the data center industry provided more than 26,000 operational and construction jobs. In total, it supported some 78,000 jobs, delivering $6.2 billion in pay and benefits and $31.4 billion in economic output. Not including construction, each job in a Virginia data center supports 3.5 more.Data center providers are also partnering with post-secondary institutions to back industry-specific offerings. I sit on the advisory board of Southern Methodist Universitys Master of Data Center Systems Engineering program, one of the few degrees of its kind.3. Data centers attract other businessesData centers exert their own gravitational pull, drawing other companies to the communities where they establish roots. In fact, the surge in new projects recently prompted Wyndham Hotels & Resorts to open properties near data centers.When a hyperscale data center moves into a market, businesses that support its services follow. If the applications using that facility are latency-sensitive, the need for speed pushes companies to locate nearby, too.The result can be a new business ecosystem for some communities and regions. In Virginia, the companies serving data centers include those in power distribution and management, IT hardware, cybersecurity, design, construction, and management consulting.The cybersecurity that local data centers provide is another business magnet. Meeting the security needs of industries with strict data privacy and storage rules, such as healthcare and financial servicesas well as players in the AI arms raceis driving expansion. For customers, data protection combined with zero downtime is a powerful draw.4. Data centers deliver broader economic benefitsWhen a data center comes to town, the ripple effects are far-reaching.One perk? Better public infrastructure. Upgrades to roads, broadband, power transmission, and other needed services can improve residents quality of life. Data center companies can also breathe new life into long-dormant districts, redeveloping brownfields into new campuses.For local governments, data centers can be a major revenue source. Because theyre taxed locally but serve customers globally, they bring in tax revenue from outside. In Virginia in 2022 alone, the industry paid $640 million and $1 billion, respectively, in state and municipal taxes.When using public services, data centers have a high fiscal benefittocost ratio. In Loudoun County, for every dollar of local public services required, data centers pay about $26, versus roughly $4 for manufacturing plants.5. Data centers create community partnership opportunitiesIn many cases, the data center industry enriches communities by giving back. Being a good neighbor requires asking residents what contributions they need and working with them to deliver. Weve partnered with a nonprofit to support reforestation near our campuses, teamed up to educate students on industry careers, and provided donations to organizations supporting families in need.As the data center industry keeps growing, many more communities and state and local governments will find themselves approached by providers. Of course, each must make the decision thats right for them. But the data center effect is worth considering. The industry still has work to do, but data centers can help build strong local economies with more opportunities for people and businessesand, perhaps, even get their own Trader Joes.Andrew Schaap is CEO of Aligned Data Centers.The Fast Company Impact Council is a private membership community of influential leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual membership dues for access to peer learning and thought leadership opportunities, events and more.