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As concerns about artificial intelligence (AI) data centers grow across rural America, a new proposal aims to ease tensions by directly sharing the economic benefits with local residents. The concept, known as “data center dividends,” suggests returning a portion of the property tax revenue generated by AI data centers back to households in the communities that host these facilities.
A recent report from the Bitcoin Policy Institute, a Washington, D.C.-based think tank, outlines how such dividends could provide families with annual payments ranging from approximately $4,500 to $8,900. Importantly, this approach would not require new taxes or additional costs for developers.
“Every American deserves to benefit from the AI boom,” said Sam Lyman, head of research at the nonprofit. “It can’t just be the developers in Silicon Valley who profit from this revolution. The communities providing the infrastructure for these data centers must also share in the wealth.”
The proposal arrives amid mounting nationwide opposition to data centers. Resistance has been fueled in part by a network of socialist and communist nonprofits linked to Neville Roy Singham, a tech figure based in Shanghai who supports the Chinese Communist Party and its global agenda.
This opposition has broadened beyond the left, with conservatives and centrists also voicing concerns. According to a recent Gallup poll, 71% of Americans oppose new AI data centers in their area, compared with 53% opposing nearby nuclear plants.
The report highlights that local moratoriums on data center construction have surged dramatically-from just six in early 2024 to nearly 300 by the end of the year.
Groups within Singham’s network, such as the Party for Socialism and Liberation and CodePink, have launched aggressive campaigns against data centers and surveillance technology, often praising China’s technological advancements while criticizing U.S. tech companies as “oligarchs” and “imperialists.” These campaigns carry the recurring slogan “People Over Profits.”
Rob Joyce, former cybersecurity director at the National Security Agency, warns that these efforts constitute “cognitive warfare,” aiming to shape public opinion in favor of Beijing’s interests. He stressed the importance of the U.S. maintaining control over advanced technology to avoid dependence on adversaries with conflicting values.
Lyman acknowledges that many Americans feel excluded from the AI economic boom, believing that corporate executives reap the benefits while local communities bear the burdens. He believes that data center dividends could help shift this narrative by giving residents a tangible stake in the AI economy.
The report draws on data from Loudoun County, Virginia, a major hub for data centers, where property tax revenue from such facilities reached $685 million in fiscal year 2024. Researchers estimate that a one-gigawatt AI data center could generate sufficient revenue to provide each household in a typical rural county with thousands of dollars annually after funding essential public services.
Louisiana’s West Feliciana Parish offers a real-world example. With a new AI campus expected to boost its budget by more than triple, state lawmakers recently passed legislation allowing local officials to offer property tax credits funded by the revenue. Had direct cash payments been authorized, residents could have received between $5,600 and $11,200 annually, depending on the share of revenue distributed.
The report also references Alaska’s well-known Permanent Fund, which shares oil revenues with residents via annual dividends, suggesting similar models could work for AI data centers.
Potential ways to distribute dividends include:
- Cash payments: Direct annual checks or deposits to residents, akin to Alaska’s dividend system.
- Property tax credits: Reducing local property tax bills using data center revenue.
- Utility bill credits: Offsetting electricity costs, helping both homeowners and renters.
- Education funds: Creating scholarship endowments for local students.
- Permanent investment funds: Investing revenue to generate sustainable income for communities, even if a data center closes.
Lyman emphasizes that direct payments could build stronger community support than tax breaks or government spending increases because residents would clearly see the benefits. “Many Americans feel left out of the AI boom,” he said. “Data center dividends give rural residents a real share in the prosperity AI is creating.”
The report concludes that rural counties, with their abundant land and power resources, play a critical role in AI development and deserve to share directly in the economic gains that follow.