Do you have an idea on why structurally undervalued states might be attracting data centers? I’m interested to know what the connection is there and why it’s playing out that way.
The honest answer is that I don't really know why! This was actually a finding that emerged toward the end of the writing process, and analyzing it deeply was out of scope.
But a few observations:
Some of the states in question, like Indiana, Mississippi, Louisiana, Tennessee, and South Carolina have at least a few things in common:
1. Relatively cheap land, cheap power, lower taxes than GDP powerhouses
2. Lots of latent energy production capacity
3. They're tightly connected to major economic hubs through large amounts of physical commodity flows
Plenty of states check boxes 1 and 2. These ones stand out because they have all of that while also sitting at structurally important positions in the interstate trade network.
I suspect these three factors might at least partially explain why it's playing out this way, but I'd need to spend more time investigating before proposing a specific hypothesis.
Question:
Do you have an idea on why structurally undervalued states might be attracting data centers? I’m interested to know what the connection is there and why it’s playing out that way.
The honest answer is that I don't really know why! This was actually a finding that emerged toward the end of the writing process, and analyzing it deeply was out of scope.
But a few observations:
Some of the states in question, like Indiana, Mississippi, Louisiana, Tennessee, and South Carolina have at least a few things in common:
1. Relatively cheap land, cheap power, lower taxes than GDP powerhouses
2. Lots of latent energy production capacity
3. They're tightly connected to major economic hubs through large amounts of physical commodity flows
Plenty of states check boxes 1 and 2. These ones stand out because they have all of that while also sitting at structurally important positions in the interstate trade network.
I suspect these three factors might at least partially explain why it's playing out this way, but I'd need to spend more time investigating before proposing a specific hypothesis.