Economic, Fiscal and Energy-related Impacts of Data Centers in the Great Lakes Region
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The rapid expansion of data centers across the United States, driven by cloud computing, digital services, and the accelerating adoption of artificial intelligence, has created unprecedented pressures on regional economies, electricity systems, and public-sector planning. One of the places where this is more evident is the Great Lakes region. As data center facilities grow in number, size, and energy intensity, state and local governments face complex questions related to infrastructure adequacy, environmental sustainability, fiscal exposure, and long-term competitiveness. Understanding the geographic distribution, energy dynamics, and economic implications of this sector has therefore become essential for shaping effective regional strategies and supporting evidence-based policymaking. This issue is especially consequential for the Great Lakes region as its environmental and economic identity is tied to one of the world’s largest freshwater systems.
This report presents the results of a multi-year research initiative examining the landscape of data centers across the eight Great Lakes states (Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania, Wisconsin). The project began in early 2024 and was carried out over a planned two-year period, structured around a coordinated set of analytical tasks that combined facility-level data, regional energy analysis, and multi-regional economic modeling.
As data centers have become a pressing issue that draws significant public and policy interest, this project naturally fostered collaboration within and across institutions. Researchers from the Weldon Cooper Center for Public Service at the University of Virginia led the analytical framework and modeling components, working closely with colleagues at UVA and partner universities. The Joyce Foundation played a critical role in facilitating engagement with public agencies, regional stakeholders, and Great Lakes institutions. This support enabled the research team to ensure that the final work could directly inform ongoing policy discussions across the Great Lakes region.