Can Data Centers Help Lower Electricity Costs — And Still Become A Costly Deal For Taxpayers?
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September 4, 2026

Can Data Centers Help Lower Electricity Costs — And Still Become A Costly Deal For Taxpayers?

Can data centers help lower electricity costs — and still become a costly deal for taxpayers?

In a new Independent Institute commentary, Northwood University Associate Professor of Economics and Philosophy Dr. Alex Tokarev and Northwood alumna Kristin Tokarev examine “the data center paradox.”

They explain how these facilities can improve grid efficiency and support technological innovation while warning that tax subsidies and publicly funded infrastructure can shift costs to families and small businesses.

Their conclusion: Let data centers compete on the value they create — not on the political favors they can secure.

Read the piece, Data Center Paradox, published by The Independent Institute.

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