In collaboration with Commonwealth Economics Partners, NetChoice released a new report, “Potential Kentucky Data Center Sites by Region: State & Local Economic & Fiscal Impact Analysis,” that found a typical 400-megawatt data center in Kentucky would generate $290 million to $435 million in city and county tax revenue over 12 years, including up to $222 million for local school districts.
Key Findings
Over the two-year construction period and first decade of operations, the analysis estimates that a single 400-megawatt data center would generate:
- $290 million to $435 million in local tax revenue
- $167 million to $222 million in tax revenue directly to local public school districts
- $230 million to $237 million in state tax revenue
- 2,800 to 3,200 construction jobs during the two-year build phase
- 200 full-time permanent data center jobs paying an average annual salary of $105,000
- 213 to 330 additional jobs supported through supply-chain and household spending
Study Methodology
To account for the differences across the varying tax rates, Commonwealth Economics created five regions of six to nine counties each across Kentucky and estimated the economic and fiscal impact of a typical $4 billion, 400-megawatt data center in each region. The estimates were based on average rates across each region’s local taxing jurisdictions.