NBER Working Paper examines how data centers affect local economies during AI expansion

Researchers Fernando E. Alvarez, David Argente, Joyce Chow, and Diana Van Patten published NBER Working Paper 35194 (2026) titled 'Data Centers and Local Economies in the Age of AI: A Shift-Share Approach'.

The paper uses a shift-share methodology to analyze the relationship between data center development and economic effects on local communities.

The work is accessible via the National Bureau of Economic Research at https://doi.org/10.3386/w35194.