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What Communities with Data Centers are Doing with the Dollars

Data centers are usually discussed in megawatts, square footage and resource demands. Less attention gets paid to what happens after the tax bill gets paid. That matters. Communities should set high standards for water, energy, noise, location and other impacts on quality of life. But when those protections are in place and responsible projects move forward, communities should also consider what the investment can make possible.

Updated August 18, 2026

Tax cuts. Teacher bonuses. Affordable homes.

Data centers are usually discussed in megawatts, square footage and resource demands. Less attention gets paid to what happens after the tax bill gets paid.

That matters. Communities should set high standards for water, energy, noise, location and other impacts on quality of life. But when those protections are in place and responsible projects move forward, communities should also consider what the investment can make possible.

Of course, how communities use that revenue is a local decision. But in places where data centers have operated for years, and in one Louisiana community where construction is still underway, those decisions have meant lower tax rates, bigger teacher checks, affordable housing and new public infrastructure.

Here’s what that looks like on the ground.

Richland Parish, Louisiana: The $50,935 teacher check

Teachers in rural Richland Parish received an extraordinary year-end check this summer: eligible certified employees received up to $50,935, compared with $10,200 the year before. Eligible support employees received up to $17,472, up from $3,323.

The surge came as Meta builds its massive Hyperion data center in Richland Parish. The project, initially announced in 2024 as a $10 billion investment, has since expanded dramatically: Meta and Louisiana officials announced in July 2026 that the company expects to invest more than $50 billion in the project.

Richland Parish has long used proceeds from a one-cent sales tax to provide supplemental checks to school employees. But construction activity associated with Hyperion dramatically increased local sales-tax collections. Meta also made a separate $22.4 million payment to the parish in May 2026.

The unusually large checks reflect a construction-driven spike in sales-tax collections, so they aren't necessarily a new annual normal. Still, for the teachers who received the money, the impact is already real.

Quincy, Washington: Lower taxes, new infrastructure

In Quincy, Washington, data centers helped dramatically expand the local tax base, giving the city resources to invest in schools, a new hospital, a fire station, public safety facilities, water and wastewater systems, sidewalks and other infrastructure.

Residents also saw tax rates fall. Between 2006, before data centers arrived in Grant County, and 2025, Quincy's property-tax levy rate dropped about 70%, from $3.12 to $0.87788 per $1,000 of assessed value.

By 2025, Grant County's 10 largest taxpayers paid more than $54 million in property taxes, up from $4.25 million in 2006. Seven of the top 10 were data centers, including six in Quincy.

Some projects, including the new high school, also required voter-approved financing. And the new fire station brought another benefit: lower fire insurance rates for residents and businesses and greater capacity to serve the surrounding area.

For a city of about 8,500 people, that's a substantial local impact.

Henrico County, Virginia: $60 million for affordable homes

Henrico County decided to turn data center revenue into something residents could see, and live in.

In 2024, county leaders created a $60 million Affordable Housing Trust Fund using surplus revenue generated by the county's data center industry.

The program helps reduce the purchase price of newly constructed homes for qualifying first-time homebuyers earning between 60% and 120% of the area's median income.

And the money is already moving. By the county's 2024-25 annual report, 93 homes had been approved through the program, with $8.3 million committed to reducing purchase prices and an average subsidy of approximately $90,000 per home.

It's a concrete example of a community taking revenue generated by digital infrastructure and directing it toward another pressing local need: helping working families buy homes.

Loudoun County, Virginia: A decade of tax relief

Few places are more closely associated with data centers than Loudoun County. And its own government makes a remarkably direct case about what the industry has meant for taxpayers.

For FY 2026, data centers account for 38% of Loudoun County's General Fund revenue.

As data center revenue grew, Loudoun cut its real-property tax rate every year for a decade, from $1.145 to $0.805 per $100 of assessed value between tax years 2016 and 2026. The county explicitly credits data center revenue with helping make lower real-property tax rates possible.

The benefits extend beyond property taxes. Loudoun says data center revenue has helped the county eliminate its $25 annual vehicle license fee, provide tens of millions of dollars in year-over-year increases for public schools, and support public safety, libraries, parks, roads, bridges and other services.

Loudoun is also planning for the possibility that those revenues won't always grow. The county has established a revenue stabilization reserve to help manage the risk associated with relying heavily on data center tax revenue.

That's part of the lesson, too: communities don't just have to attract investment. They have to plan for it.

The bottom line

Every community will make its own choices about how to use new revenue.

But these examples show what's possible when communities set high standards, protect quality of life and put new investment to work locally.

The value of a data center isn't measured only in megawatts or square feet. It's also measured in what a community can do with the dollars it brings.

FDISA materials are provided for general informational and educational purposes only and do not constitute legal, tax, engineering, environmental, energy, regulatory, or other professional advice.