Article

A report by the Brookings Institution advises localities to negotiate long-term economic benefits from data center agreements. It asserts that communities have more bargaining power due to the demand for AI-focused data centers that require significant land and energy.

Localities should ask for investments that foster new economic sectors rather than one-time contributions. Suggestions include co-investing in AI-related real estate, forming partnerships with universities, and ensuring data centers contribute to local talent development. The report emphasizes shifting negotiations to include long-term community benefits.