PHOENIX — The explosion in demand for data center capacity and rapid planning to get projects off the ground could pose a risk to local governments’ creditworthiness.
As developers and investors tout tax revenues for communities, the facilities could also drive economic concentration and volatility while potentially straining local resources, according to a new report from S&P Global.
“In some ways, this looks a lot like economic and taxpayer concentration in any economic development scenario in any city,” said Sarah Sullivant, managing director at S&P.
