EconPapers    
Economics at your fingertips  
 

How Sovereign Control, Decarbonization, and Energy Costs Shape Public Support for Data Centers

Jonas Heering and Erik Voeten

No fc3pb_v1, SocArXiv from Center for Open Science

Abstract: The rapid expansion of data centers has created new political challenges. Governments want to build more data centers within their borders to reap the benefits from the artificial intelligence (AI) economy and achieve their digital sovereignty agendas. However, data centers require enormous amounts of electricity and water, threaten emission-reduction targets, and often raise electricity prices. As a result, local communities increasingly mobilize against data center construction. We use a vignette and conjoint survey experiment in Germany to evaluate how publics think about the environmental, economic, and (geo)political tradeoffs that data centers entail. We find that directly priming people with digital sovereignty concerns only marginally increases support for building more data centers. Yet, support for data centers varies substantially based on characteristics that people do have strong views about: decarbonization, geopolitics, and local environmental and economic impact. Geopolitical concerns are particularly salient: people strongly favor data centers operated by German or European firms over US or Chinese operators. These effects are large even when compared to the effects of substantial electricity price increases and variation in energy sources. Our findings suggest that public opposition over data centers depends on pre-existing political cleavages and that sovereignty concerns loom large.

Date: 2025-12-02
New Economics Papers: this item is included in nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
https://osf.io/download/692f5753db1bc3ffb5825b34/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:fc3pb_v1

DOI: 10.31219/osf.io/fc3pb_v1

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().

 
Page updated 2025-12-31
Handle: RePEc:osf:socarx:fc3pb_v1