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Out here in rural places like ours, the sun gets low and the numbers in the county ledger don’t stretch as far as they used to. Towns that once thrived on coal, farming, or factory work are now running on fumes. So when a developer shows up promising new tax base and shiny infrastructure, it’s easy to lean forward and start dreaming again.

A story from Southern Ag Today, “Land, Power, and Computing”, spells out what’s happening across the rural South. Rural Counties are being courted by big tech firms looking for cheap land, lower taxes, and cool climates for their data centers. The pitch sounds like salvation: acres of humming servers, millions in taxable value, and a chance to join the digital age.

And sure, data centers can bring benefits. They boost property tax rolls and can justify long overdue upgrades to roads, power lines, and broadband. But when a county that’s already losing population or tax revenue starts offering deep tax breaks and footing the bill for new infrastructure, that good thing can turn sour in a hurry.

Prince William County, Virginia learned that lesson the hard way when its leaders approved what became the Digital Gateway project—a data center corridor so large it rivals nearby towns in size. The plan covers more than two thousand acres and could include more than twenty million square feet of facilities. Local residents and conservation groups fought it for years, warning about power demand, noise, and the loss of farmland. The county pushed ahead anyway, and now faces rising infrastructure costs, lawsuits, and a community still divided over whether the trade-off was worth it. (Washington Post, Aug. 14, 2025)

The Good Side

A new facility can bring a windfall of taxable property. That extra revenue helps schools, fire departments, and libraries. It can also fund broadband expansions and road improvements that would never happen otherwise. In communities where the factories have gone quiet, even a modest bump in revenue can feel like a lifeline.

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The Too-Much Side

The problem is that data centers don’t bring many jobs once the ribbon is cut. A few dozen technicians and security staff can run a billion-dollar operation. That’s not enough to keep a Main Street alive.

And then come the costs. Counties often end up paying for new roads, water lines, and substation upgrades that run into the millions. In many cases, local governments hand out massive tax breaks in hopes of landing the project, only to learn later that the “incentives” outweighed the benefits. A report by Good Jobs First found that at least ten states lose more than one hundred million dollars a year in tax revenue to data center incentives. Another study by NAIOP shows that thirty-six states now offer these kinds of deals. The competition has turned into a race to the bottom.

Meanwhile, the same land that once grew hay or corn is fenced off under high-voltage lines. The hum of servers replaces the sound of tractors, and the local power grid strains under the new load. That kind of trade might make sense near a metro area, but in a small county with aging infrastructure, it can feel like biting off more than you can chew.

What Local Leaders Should Ask

If a company comes knocking, county officials ought to keep a short list of questions ready.

What’s the long-term job plan? How many positions, what kind of pay, and will they hire local?

Who pays for the infrastructure? Are we financing new power lines and water systems just to serve one corporate customer?

What tax breaks are on the table? How long do they last, and when does the county actually start to see money coming back?

What happens if the company sells the project or pulls out halfway through construction? Who’s left holding the bag? Is there a bond on the project to protect the locality?

And the biggest one of all—how does this investment help Main Street, not just the balance sheet of a billion dollar corporation?

The Bottom Line

Data centers aren’t evil. They’re just tools. Used right, they can help a struggling region build a foundation for the future. Used wrong, they turn into empty promises that drain county budgets and leave little behind but a fenced-in field and a monthly debt payment.

The truth is, there’s no quick fix for a hollowed-out local economy. It takes a patchwork of smaller, smarter wins—entrepreneurs, housing, broadband, small manufacturers—to bring real recovery. Betting everything on one mega-project is like trying to fix a broken fence with one nail.

Too much of a good thing can become a burden. Before we sell out our ridgelines and farmland for a few blinking lights, we ought to make sure the deal works for the people who already live here. The goal isn’t to make Wall Street happy. It’s to keep Main Street alive.

Be curious, not judgmental.

Till next time, that’s the story from the ‘Back Forty’. — John W. Peace II

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John Peace / Author

John W. Peace II is a fifth-generation farmer from Big Stone Gap, Virginia, where he grew up on his family’s dairy, Clinch Haven Farms, and still lives today farming hay and beef cattle. He’s a proud father to Trey and Shelby Peace, and partner in life to Cathy Swinney. A Virginia Tech graduate with graduate studies at Penn State, he served as the youngest Chair of the Wise County Board of Supervisors (2004–2008). John co-owns SafeHavenServices.co and urTOPIX LLC (urTopixLLC.com), a Democratic campaign consulting firm focused on reaching rural voters that is sponsored by www.RuralAmericaRising.com PAC. He’s also a two-time Amazon bestselling author. Learn more at www.JohnWPeace.com.

www.RuralAmericaRising.com

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