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Four Communities, Four Data Center Stories

Jun 2, 2026

A lot of what gets said about data centers and the local economy is hypothetical. Jobs projected, tax revenue estimated, benefits promised. The argument tends to happen before a facility is built – at a planning commission hearing, in a county board packet, in a public comment window.

There is another way to look at the question. A handful of communities in the United States have now hosted hyperscale data centers long enough – ten, fifteen, even twenty years – that the local economic story isn’t a projection anymore. It’s a record.

Here are four of them.

Prineville, Oregon — Meta and Apple (2011 and 2012)

Meta (then Facebook) opened its first data center campus in 2011, and Apple opened its own Prineville facility the following year. The two companies now operate adjacent campuses totaling roughly 700,000 square feet of hyperscale data center capacity.

The wage story is the most concrete measurable benefit. According to Cascade Business News reporting on Central Oregon’s data center cluster, the two facilities together support roughly 600 permanent positions at wages at least 130 percent of the Crook County average, and Crook County has since risen to the second-highest average wage in Oregon. Meta has contributed more than $2 million in direct grants to the Crook County School District over the past decade.

The tax side is more complicated, and it’s worth noting. As the Bend Bulletin reported in August 2025, the enterprise zone program that brought the data centers to Prineville exempts them from property taxes on capital investment for fifteen years. By 2024, Crook County Schools counted $29 million in foregone property tax revenue from those exemptions – though, as the Bulletin notes, Oregon funds public schools through a statewide equalization formula that redistributes resources across districts – so Crook County’s share of school funding is largely held steady even when local property tax revenue drops. The statewide cost of business tax exemptions is real, but it’s spread across every Oregon district rather than concentrated in the host community.

Quincy, Washington — Microsoft (2007)

Quincy is a small agricultural town in central Washington that said yes to data centers in the mid-2000s. The numbers since then are striking — and they come from state government and independent reporting rather than from Microsoft itself.

A Washington State Department of Revenue workgroup, commissioned by Governor Bob Ferguson’s Executive Order 25-05 in 2025, found that roughly 65 percent of Quincy’s property tax revenue now comes from data centers, and that residential property tax rates in the town are about 70 percent lower than they were before data centers arrived. A Spokesman-Review report documented the same pattern a decade earlier, showing that Quincy’s property tax collections had quadrupled over the prior ten years, with more than 70 percent of that growth coming from data center assessments.

That tax base has paid for a new $100 million high school, a new fire station, a new city hall, a new public safety facility, and the new Quincy Valley Medical Center – built during a period when rural hospitals elsewhere in the country were scaling back or closing.

The residential side of the ledger is the more direct benefit. According to U.S. Census data, the share of Quincy residents living below the poverty line has been roughly cut in half in a decade – from 29.4 percent in 2012 to 13.1 percent in 2023.

The Dalles, Oregon — Google (2006)

The Dalles is the longest-tenured of the four. Google built its first owned-and-operated data center there in 2006 and has since expanded the site several times. Twenty years in, the community has an unusually long public record to look at — both the benefits and the friction.

The most durable local benefit is infrastructure. As part of a 2021 agreement for two additional data centers, Google invested $28.5 million to build an Aquifer Storage and Recovery system for the city – two groundwater wells, two storage tanks, and multiple pump stations. Google has permanently transferred ownership of the system to The Dalles, which now has roughly 100 million additional gallons of annual water supply regardless of what happens to the data centers. The same figures have been independently reported by Oregon Business magazine and OPB.

On the tax side, Google’s abatement agreement runs through a state Strategic Investment Program that requires a Community Service Fee equal to 25 percent of the annual tax savings, capped at $2.5 million per year. Columbia Community Connection News reported that the fee is distributed across eleven local taxing districts, with North Wasco County School District 21 receiving the largest single share at 30.1 percent. In 2025, Google’s combined property tax and community service fee payment totaled $7.3 million.

The Dalles also has the most contested public record of the four cases. Oregon Capital Chronicle and OPB have both continued to cover active disputes over water use and the structure of the tax agreement. Those debates are worth taking seriously; they’re also part of what twenty years of operating experience looks like.

Loudoun County, Virginia — AWS and others (2006 onward)

Loudoun County is the densest data center market in the world, and the numbers are on a different scale from the other three.

The most authoritative local accounting comes from Mangum Economics, an independent Richmond-based consulting firm whose successive reports on the Loudoun data center industry have been commissioned by Loudoun County itself rather than by the operators. Using the Mangum methodology, Loudoun County data centers generated $733 million in local tax revenue in fiscal year 2023, representing 31 percent of total county tax revenue. The same analysis concluded that for every dollar in public services the county provides to data centers, it collects approximately $26 in tax revenue – a 26-to-1 benefit-to-cost ratio.

The effect on residential property owners is direct and quantifiable. Loudoun County’s own published budget disclosures report that the real property tax rate has fallen from $1.285 per $100 of assessed value in 2008 to $0.805 per $100 in 2025, and that without the data center industry the rate “would likely be more than $1 per $100.” That 48-cent reduction translates into meaningful annual savings on residential property tax bills; for a home assessed at $600,000, the difference is roughly $2,880 a year.

The Federal Reserve Bank of Richmond has separately analyzed the Northern Virginia cluster, describing both its economic footprint and the structural factors — fiber backbone, substation capacity, land availability — that concentrated it in Loudoun. AWS, the largest operator in the region, reports $51.9 billion in Virginia investment between 2011 and 2021 and has announced plans for an additional $35 billion through 2040.

What the Four Stories Have in Common

These communities are very different from one another. A rural county in central Oregon, a small agricultural town in Washington, a Columbia Gorge town of fifteen thousand, and one of the wealthiest counties in the United States. The deals are structured differently — some use enterprise zones, some use payment-in-lieu-of-tax agreements, some rely on standard property tax assessment.

But a few patterns repeat – a broad commercial tax base that relieves pressure on residential property taxes. Direct investment in local infrastructure – water, roads, fiber – that outlasts the facility. Workforce training pipelines that raise local wages. And direct grants and contributions to schools and civic organizations over the life of the site.

Not every community that hosts a data center sees every one of these outcomes, and the specific structure of the host-community agreement matters a great deal to which benefits land locally. That’s the work the land-use review stage and a well-drafted Community Benefit Agreement are designed to do.

The short version is that these four places are not predictions. They’re ten to twenty years of evidence that, when the deal is structured with the community in mind, a data center can be a meaningful contributor to the local economy for a long time.