“Michael Mandel, the chief economist for the Progressive Policy Institute, told me that employment gains are likely to grow as new data centers attract businesses that use AI. Companies using the technology for advanced applications—such as for autonomous vehicles and medical research—may benefit from proximity to these centers, because information can travel faster from source to user. The margin is imperceptible to most people using Claude or ChatGPT, but for companies that depend on real-time AI-powered decision making at scale, tiny differences in latency matter. The kinds of businesses that will drive the AI economy are thus likely to set up in communities that invest in data centers.”
