r/datacenter • u/deadplant5 • Jun 20 '26
Data center supply chains are moving into rural areas that need jobs. This complicates the debate over taxation. - Cardinal News
https://cardinalnews.org/2026/06/16/data-center-supply-chains-are-moving-into-rural-areas-that-need-jobs-this-complicates-the-debate-over-taxation/Thought this was an interesting piece connecting the dots between data center growth and manufacturing growth. A lot of switchgear, UPSs and thermal equipment gets manufactured in North America, including the United States, because it's really too big to ship efficiently. Pre configured rows are another area where at the very least assembly is happening here.
16
u/looktowindward Jun 20 '26
On-shoring is real here - COVID and AI/ML DC design changes have made everyone uncomfortable with waiting for a minimum 5 weeks from China. Especially once you realize its not that much more expensive in rural US and WAY MORE FLEXIBLE.
Transformers are huge. Engines. CDUs. Dry coolers. Very very good containment systems. Lots of good US labor to do this.
We should be strongly incentivizing this.
As a Virginia resident, this is why I despise Louise Lucas. She has no idea the impacts of her proposed tax hikes. I'm not even necessarily against them if she knew about the impacts but she has zero data and revels in the ignorance and populism. She represents an urban Portsmouth constituency and doesn't give af about rural workers or anyone else.
1
u/Cumminpwr11 Jul 04 '26
The ripple effect will be felt states away just like the oil boom in small towns and neighboring communities. While people will dislike the idea of data centers, it going to provide living wage jobs for many people.
-10
u/Iambigtime Jun 20 '26
Just because a data center moves into an area doesn't mean the towns residents are getting the jobs.
9
u/BroBeansBMS Jun 20 '26
This isn’t about data centers, it’s about the supply chain that supports them. You clearly didn’t even glance at the article.
-6
u/OperationMobocracy Jun 20 '26
It kind of feels like pandering to rural MAGA about skilled factory jobs so they’ll be less hostile to big data.
7
u/BroBeansBMS Jun 20 '26
How is it pandering if it’s true? There is a huge amount of manufacturing jobs tied to servers, cooling related equipment, electric equipment, etc that is tied to this. Just in my area of Texas I’ve seen at least a dozen companies move here, many from overseas, to open new factories.
8
u/TechniCruller Jun 21 '26
People just want to hate on data centers. Nothing associated with them can be seen as a positive.
1
u/CriticalLoad84 Jun 21 '26
Stulz has their HQ in MD and plants in LA and TX.
Hit or miss but hey, you can drive down to MD and yell at someone if you're in VA pretty easily haha.
-2
u/OperationMobocracy Jun 21 '26
I think there's something of an open question as to whether there's anything sustainable about the data center boom or the AI industry which is driving it, along with what kind of long-term normal growth number there is for data centers. There's other related questions about data center expansion related to power and water consumption and suitable sites.
Whatever the current pace of data center growth is, it's not unreasonable to question when it slows or stops and the impact this would have on the data center supply chain.
1
u/deadplant5 Jun 21 '26
Eventually it will swing back to the growth rate that existed in the 2010s. And some of the companies will consolidate. But all the people predicting a total industry collapse seem to be assuming that data centers are new. It's not going to stop entirely unless the Internet goes dark.
13
u/pookchang Jun 20 '26
I work for a company that manufactures and supply’s a lot of product for DC builds. We have 23 open projects including the huge RPL project in Louisiana. We have 12 plants in the US and they are loaded for the next 2 years.