In a bid to revitalize their dwindling economies, rural towns in Zimbabwe are considering an unlikely savior: data centers. Despite controversy surrounding these facilities, they could bring substantial revenue and jobs to areas in dire need of economic stimulus. A similar trend is being observed in the United States, where rural towns are weighing the pros and cons of hosting data centers. For instance, the town of Osawatomie, Kansas, is being courted by developers to host a mid-sized data center.
Osawatomie, a working-class town of about 4,000 residents, has long struggled to attract commercial development. A weedy soybean field on a brick road, 2 miles from the town's half-empty downtown, has been zoned industrial for over 20 years, with hopes of eventual development. The proposed data center could bring $10 billion worth of new buildings and equipment, dwarfing any other investment in the town. City manager Bret Glendening describes the potential investment as "comparing the Earth to the Milky Way galaxy - it's huge."
The data center proposal could generate $40 million a year in taxes and fees, more than doubling Osawatomie's budget. This could potentially replace the town's lost financial base, the railroad, which pulled out almost 50 years ago, taking hundreds of jobs and economic lifeblood with it. John Fletcher, a volunteer at the Osawatomie History and Railroad Museum, notes that the town has never recovered from the loss and is in dire need of expanding its tax base.
However, not everyone in Osawatomie is convinced that the data center is the way forward. Some residents, like Lee Brewer, worry that it will strain the town's water and electricity resources, while others, like Michael Hursey, are concerned about the AI boom going bust and the motives of the people bankrolling the industry. Hursey believes that the billionaires behind the industry are playing a game that the townspeople don't understand.
Developers, however, argue that data centers can be a boon for rural towns. Charles Tinsley, with MDH Partners in Atlanta, says that the proposed data center in Osawatomie would use less water than a golf course and contract for its own electricity, generating millions in fees and taxes. He likens data centers to the railroads that built towns like Osawatomie in the 1800s, saying they are fundamental to commerce and bound to be built somewhere.
As Zimbabwean rural towns consider similar investments, they will have to balance the potential downsides of data centers against the need to revitalize their economies. With scant industry and limited resources, these towns are often forced to rely on homeowners for a significant portion of their property tax revenue. In Osawatomie, for example, homeowners account for almost 80% of the town's property tax revenue.
Ultimately, the decision to host a data center will depend on the specific needs and concerns of each rural town. While some residents, like 19-year-old Makayla Bowers, are skeptical about the data center's impact, others see it as a necessary step to keep their towns economically vital. As Zimbabwean rural towns weigh their options, they will be watching the outcome of similar proposals in the United States, where the debate surrounding data centers is ongoing.
Key points
- Data centers could bring substantial revenue and jobs to Zimbabwe's struggling rural towns.
- The proposed data center in Osawatomie, Kansas, could generate $40 million a year in taxes and fees.
- Rural towns will have to balance the potential downsides of data centers against the need to revitalize their economies.
