Congressman Jake Ellzey (R-TX), Chairman of the Small Business Subcommittee on Rural Development, Energy, and Supply Chains, recently convened a hearing titled “Empowering Rural America Through Investment in Innovation.” This gathering highlighted the burgeoning opportunities presented by data centers in rural areas, which are increasingly being viewed as catalysts for local economic growth.
The conversation underscored the pivotal role rural communities can play in America’s economic future. “By focusing on energy development and the growing demand for data centers, we are opening the door to new investment, high-quality jobs, and long-term growth in the communities that have too often been left behind,” Ellzey noted. The discussions aim to formulate actionable policies to ensure that rural America not only participates in economic advancements but takes the lead.
Data centers have emerged as energy-intensive facilities that many may regard with skepticism. Questions about their impact on local resources and energy costs were central to the exchange among various stakeholders. Deputy Director of Development, Mr. Crosby, addressed concerns from communities, particularly in Southern Minnesota, about potential rises in electricity prices due to the influx of data centers. He argued that these facilities can act as anchor tenants, helping to spread out fixed infrastructure costs and provide local economies with much-needed stability.
Crosby emphasized, “We do not go to these environments and look for them to pay us for them. We’ve bought land and transferred it to the utility company for easements. We’ve paid for transmissions and substations, so the infrastructure we utilize often benefits the broader community.” He elaborated on how these developments often include upgrades that communities might not otherwise afford, thereby leading to lower costs for local residents and small businesses.
Furthermore, Crosby highlighted an innovative potential of data centers to function as grid resources. In instances like Storm Yuri, if data centers had been allowed more flexibility in operations, they could have contributed to grid stability, potentially saving lives. “We can be the stabilizing factor for the grid,” Crosby asserted, illustrating how unused infrastructure can be efficiently utilized during peak demand times, thus lessening the burden on local residents.
The hearing showcased critical insights on leveraging the presence of data centers for workforce development. Veterans, specifically, were identified as a significant talent pool for these industries. Citing the state’s unique advantages, Ellzey stated, “The military is best known for being one of the largest leadership incubators ever built.” He pointed out that veterans possess skills in leadership and crisis management, making them exceptionally suited for roles in the high-tech sector.
However, as rural economies strive to integrate data centers, small business owners must remain cognizant of the potential challenges. While investment can spur growth, the transition may stress current resources and infrastructures. Community leaders and business owners need to engage with data center operators to understand how these facilities will integrate into the existing landscape, particularly concerning energy consumption and infrastructure strain.
The impact of data centers is not merely theoretical—case studies from various rural communities reveal a growing interest in attracting these facilities. By assessing both benefits and potential drawbacks, small business owners can make informed decisions about how to collaborate with emerging technologies. The aim should be to harness innovation for community upliftment while safeguarding local resources and ensuring equitable growth.
In this era of rapid digital transformation, rural areas have the opportunity to evolve from being overlooked to becoming leaders in technology and innovation. Small business owners can play an integral role in this transition, leveraging local resources and collaborating with data operators to create sustainable community growth.
To delve deeper into the discussions from the hearing, you can access the full transcript here.
