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What data centers don't build
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Plus: A rival's fix for Anthropic's compute shortage.
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Monday, July 20, 2026
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Kyle Grillot / Bloomberg via Getty Images
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America is building 3,000 data centers. The economics aren't great
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Abilene, Texas, has staked its housing market and tax base on a data center that will permanently employ almost none of the people who build it. Cities across the country are making the same bet, offering tax breaks in exchange for jobs that mostly disappear once construction wraps.
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That mismatch is structural, not
particular to Abilene. Meta is planning on keeping only 500 permanent workers from the 5,000 building its Louisiana data center. The roughly 3,000 more data center projects moving through development will be built on some version of the same math.
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Abilene's housing costs absorbed the impact first. Average monthly rents rose $1,000 in a year, and the Abilene Housing Authority now places only half its clients in housing within 90 days, down from 80% previously. Sales tax revenue may have jumped 40%, but Abilene will
collect just 15% of the data center's property tax value for a decade, effectively trading long-term revenue for a short-term windfall.
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Turnover among construction crews in similar boomtowns reaches 100% to 200% a year. The electricians will continue to follow the work. The cities will not.
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Should cities
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Yes. The jobs and taxes make it worth it
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<td align="center" bgcolor="#105C8E" style="text-align:center;vertical-align:middle;-webkit-border-radius:6px;-moz-border-radius:6px;border-radius:6px;font-size:16px;font-family:Arial,Helvetica,sans-serif" valign="middle">
<table align="center" bgcolor="#105C8E" cellpadding="0" cellspacing="0" style="-webkit-border-radius:6px;-moz-border-radius:6px;border-radius:6px;margin-left:auto;margin-right:auto" width="100%">
<tbody>
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<td align="center" bgcolor="#105C8E" style="text-align:center;-webkit-border-radius:6px;-moz-border-radius:6px;border-radius:6px;font-size:16px;font-family:Arial,Helvetica,sans-serif">
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No. The economic impact is negligible
</span>
<!--<![endif]-->
<!--[if mso]><a
href="https://www.ne16.com/t/10994494/222404108/10192945/1/1009235/?abb9e380=NGYzZmQyODYtMmZhOS00YzdjLWFkYzktMzQyOGNhZmI3ZDBl&f5d63f87=REIlMjAwNy0yMA&x=0e93f851" target="_blank" style="-webkit-border-radius: 6px; -moz-border-radius: 6px; border-radius: 6px; color: #FFFFFF; text-decoration: none; font-family: Arial; font-size: 16px; border: none; display: block; ">No. The economic impact is
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<tbody>
<tr>
<td align="center" bgcolor="#105C8E" style="text-align:center;-webkit-border-radius:6px;-moz-border-radius:6px;border-radius:6px;font-size:16px;font-family:Arial,Helvetica,sans-serif">
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Only if it guarantees permanent jobs
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<!--<![endif]-->
<!--[if mso]><a
href="https://www.ne16.com/t/10994494/222404108/10192946/1/1009235/?abb9e380=NGYzZmQyODYtMmZhOS00YzdjLWFkYzktMzQyOGNhZmI3ZDBl&f5d63f87=REIlMjAwNy0yMA&x=7552790a" target="_blank" style="-webkit-border-radius: 6px; -moz-border-radius: 6px; border-radius: 6px; color: #FFFFFF; text-decoration: none; font-family: Arial; font-size: 16px; border: none; display: block; ">Only if it guarantees permanent
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<span style="font-family:Arial;font-size:24px">
Here's what you need to know
</span>
</h1>
</td>
</tr>
<tr>
<td class="snippet td100" colspan="6" style="width:600px;position:static;vertical-align:top;font-family:Arial,Helvetica,sans-serif;font-size:15px" width="600">
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<a aria-label="CFOTO / Future Publishing via Getty Images" style="color:#105C8E" target="_blank" title="CFOTO / Future Publishing via Getty Images">
<img alt="CFOTO / Future Publishing via Getty Images" class="img100" data-linktype="Normal" data-target="_blank" height="auto" src="https://inboxflows.com/_/image/https%253A%252F%252Fqz.com%252Fcdn-cgi%252Fimage%252Fwidth%253D640%252Cheight%253D360%252Cfit%253Dcover%252Cquality%253D85%252Cformat%253Dauto%252Fhttps%253A%252F%252Fassets.qz.com%252Fmedia%252FGettyImages-2228262902.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZxei5jb20lMkZjZCIsInRpbWUiOjE3ODQ1NDI0MTUuOTIyMDcyNn0:1wll0B:wrJnup6PtVQ-OeT1g1T-uxYhRV3enA-efEnV4RV1Q1g" style="width:200px;vertical-align:middle;border:0" width="200"/>
</a>
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<div>
<strong style="color:#105C8E">
<a data-linktext="Apple overtakes Nvidia as the world's most valuable company." data-linktype="Normal" style="color:#105C8E" target="_blank">
Apple overtakes Nvidia as the world's most valuable company.
</a>
</strong>
Apple's market cap briefly climbed to $4.9 trillion Friday, surpassing Nvidia as the chipmaker fell to a $4.8 trillion
valuation. Apple reclaimed top spot for the first time since April 2025, aided by China's recent approval of Apple Intelligence.
</div>
</td>
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<td class="td100" colspan="6" height="24" style="background-color:#EFEFEF;width:600px;height:24px;font-size:1px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="600">
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<td align="left" class="editor-cell-image td100" colspan="2" style="background-color:#EFEFEF;background-repeat:no-repeat;background-size:auto;vertical-align:middle;width:200px;text-align:left;font-family:Arial,Helvetica,sans-serif;font-size:15px" width="200">
<a aria-label="Pool / Getty
Images" style="color:#105C8E" target="_blank" title="Pool / Getty Images">
<img alt="Pool / Getty Images" class="img100" data-linktype="Normal" data-target="_blank" height="auto" src="https://inboxflows.com/_/image/https%253A%252F%252Fqz.com%252Fcdn-cgi%252Fimage%252Fwidth%253D640%252Cheight%253D360%252Cfit%253Dcover%252Cquality%253D85%252Cformat%253Dauto%252Fhttps%253A%252F%252Fassets.qz.com%252Fmedia%252FGettyImages-2285789329.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZxei5jb20lMkZjZCIsInRpbWUiOjE3ODQ1NDI0MTUuOTIyMTg0Mn0:1wll0B:nyIHc4O-THaf72UIpQhXiFK_z4UfFm2MUIIAKGCtqbI" style="width:200px;vertical-align:middle;border:0" width="200"/>
</a>
</td>
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<div>
<strong style="color:#105C8E">
<a data-linktext="Xi positions China as
the leader in open-source AI." data-linktype="Normal" style="color:#105C8E" target="_blank">
Xi positions China as the leader in open-source AI.
</a>
</strong>
President Xi Jinping urged nations to share AI openly and, in a jab at U.S. export controls, warned against placing security above others. Before his speech, 29 countries had joined a China-led AI bloc rivaling the U.S.-backed Pax Silica group.
</div>
</td>
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<td class="td100" colspan="6" height="24" style="background-color:#EFEFEF;width:600px;height:24px;font-size:1px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="600">
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<a aria-label="J. David Ake / Getty Images" style="color:#105C8E" target="_blank" title="J. David Ake / Getty Images">
<img alt="J. David Ake / Getty Images" class="img100" data-linktype="Normal" data-target="_blank" height="auto" src="https://inboxflows.com/_/image/https%253A%252F%252Fqz.com%252Fcdn-cgi%252Fimage%252Fwidth%253D640%252Cheight%253D360%252Cfit%253Dcover%252Cquality%253D85%252Cformat%253Dauto%252Fhttps%253A%252F%252Fassets.qz.com%252Fmedia%252FGettyImages-2278350716-sec-building-washington/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZxei5jb20lMkZjZCIsInRpbWUiOjE3ODQ1NDI0MTUuOTIyMjk5MX0:1wll0B:zbs4GUrAysGTlug0vUllekO2o7zM4VwdVUpYbKSjQ7c" style="width:200px;vertical-align:middle;border:0" width="200"/>
</a>
</td>
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<div>
<strong style="color:#105C8E">
<a data-linktext="The SEC's plan to end quarterly earnings draws a flood of complaints" data-linktype="Normal" style="color:#105C8E" target="_blank">
The SEC's plan to end quarterly earnings draws a flood of complaints
</a>
</strong>
. The proposal, which would let companies file semiannual reports instead of quarterly ones, triggered
the largest volume of responses in SEC history, and most of it was negative. The agency is likely to proceed despite the opposition.
</div>
</td>
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<tr style="background-color:#EFEFEF">
<td class="td100" colspan="6" height="24" style="background-color:#EFEFEF;width:600px;height:24px;font-size:1px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="600">
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<a aria-label="Alex Brandon / AP Photo / Bloomberg via Getty Images" style="color:#105C8E" target="_blank" title="Alex Brandon /
AP Photo / Bloomberg via Getty Images">
<img alt="Alex Brandon / AP Photo / Bloomberg via Getty Images" class="img100" data-linktype="Normal" data-target="_blank" height="auto" src="https://inboxflows.com/_/image/https%253A%252F%252Fqz.com%252Fcdn-cgi%252Fimage%252Fwidth%253D640%252Cheight%253D360%252Cfit%253Dcover%252Cquality%253D85%252Cformat%253Dauto%252Fhttps%253A%252F%252Fassets.qz.com%252Fmedia%252Ftrump%2520iran%2520speech-1920x1280.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZxei5jb20lMkZjZCIsInRpbWUiOjE3ODQ1NDI0MTUuOTIyNjY4N30:1wll0B:XGeWgw_XQZMCEO9504tRb0S-H3DlZXU4v3plWqMz5p8" style="width:200px;vertical-align:middle;border:0" width="200"/>
</a>
</td>
<td class="editor-cell-text td100" colspan="4" style="background-color:#EFEFEF;padding:10px;font-size:15px;font-family:Arial,Helvetica,sans-serif;width:380px;line-height:1.4;vertical-align:top;mso-line-height-rule:exactly" width="380">
<div>
<strong style="color:#105C8E">
<a data-linktext="Trump Media will sell
early access to Trump's market-moving posts." data-linktype="Normal" style="color:#105C8E" target="_blank">
Trump Media will sell early access to Trump's market-moving posts.
</a>
</strong>
Starting Aug. 1, the paid feed will ring-fence posts from Truth Social's top accounts, including President Donald Trump's own. Watchdogs say Trump has a duty to share information freely but instead stands to profit as a Trump Media shareholder.
</div>
</td>
</tr>
<tr style="background-color:#EFEFEF">
<td class="td100" colspan="6" height="24" style="background-color:#EFEFEF;width:600px;height:24px;font-size:1px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="600">
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<tr class="trpad10" style="background-color:#EFEFEF">
<td align="left" class="editor-cell-image td100" colspan="2" style="background-color:#EFEFEF;background-repeat:no-repeat;background-size:auto;vertical-align:middle;width:200px;text-align:left;font-family:Arial,Helvetica,sans-serif;font-size:15px" width="200">
<a aria-label="Mario Tama / Getty Images" style="color:#105C8E" target="_blank" title="Mario Tama / Getty Images">
<img alt="Mario Tama / Getty Images" class="img100" data-linktype="Normal" data-target="_blank" height="auto" src="https://inboxflows.com/_/image/https%253A%252F%252Fqz.com%252Fcdn-cgi%252Fimage%252Fwidth%253D640%252Cheight%253D360%252Cfit%253Dcover%252Cquality%253D85%252Cformat%253Dauto%252Fhttps%253A%252F%252Fassets.qz.com%252Fmedia%252FGettyImages-2278705115.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZxei5jb20lMkZjZCIsInRpbWUiOjE3ODQ1NDI0MTUuOTIyNzg0OH0:1wll0B:TgiteXJQ0X3rXbEQDEu1e0dX2oMfgpXhkfkyA_QXwvI" style="width:200px;vertical-align:middle;border:0" width="200"/>
</a>
</td>
<td class="editor-cell-text td100" colspan="4" style="background-color:#EFEFEF;padding:10px;font-size:15px;font-family:Arial,Helvetica,sans-serif;width:380px;line-height:1.4;vertical-align:top;mso-line-height-rule:exactly" width="380">
<div>
<strong style="color: var(--blue-cta-default)">
<a data-linktext="U.S. prices for Chinese imports post their biggest jump since 2008." data-linktype="Normal" style="color:#105C8E" target="_blank">
U.S. prices for Chinese imports post their biggest jump since 2008.
</a>
</strong>
U.S. import prices rose 0.3% in June, defying forecasts of a 0.8% decline, as the China component climbed 0.9%. AI data
centers drove the nonfuel gain, while import prices overall rose 7.1% year over year, the most since August 2022.
</div>
</td>
</tr>
<tr style="background-color:#EFEFEF">
<td class="td100" colspan="6" height="24" style="background-color:#EFEFEF;width:600px;height:24px;font-size:1px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="600">
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</table>
</td>
</tr>
<tr>
<td class="td100" colspan="6" height="24" style="width:600px;height:24px;font-size:1px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="600">
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<h1 style="mso-line-height-rule:exactly;Margin:0;font-family:Arial;font-size:24px;font-weight:bold">
<span style="font-size:24px;font-family:Arial">
Recommended
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<table border="0" cellpadding="0" cellspacing="0" class="dragndrop" height="100%" style="table-layout:fixed" width="100%">
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<td class="editor-cell-text td100" colspan="6" style="padding:10px
20px;background-color:#F9F8F6;color:#121721;font-size:24px;width:560px;vertical-align:top;font-family:Arial,Helvetica,sans-serif" width="560">
<h2 style="mso-line-height-rule:exactly;Margin:0;font-family:Arial;font-size:20px;font-weight:bold">
<span>
The best deals, six days a week
</span>
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<div>
<a data-linktext="Kinja Deals by The Inventory" data-linktype="Normal" style="color:#17253D" target="_blank">
Kinja Deals by The Inventory
</a>
helps shoppers find worthwhile discounts without spending hours searching. Published Monday through Saturday, the newsletter features more than 30 handpicked deals in every issue from Amazon, Walmart, Target, and 300+ other retailers. From tech and home goods to everyday essentials, gifts, and seasonal finds, it is an easy way to spot the sales worth your time.
</div>
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<td class="td100" colspan="6" style="color:#3EE8A1;padding:10px;font-family:Arial,Helvetica,sans-serif;font-size:24px;background-color:#F9F8F6;width:580px;vertical-align:top" width="580">
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<tr>
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Anthropic is in talks to lease computing power from Meta in a deal worth up to $10 billion, according to the New York Times. Anthropic reportedly proposed the arrangement in June, and Meta is weighing it.
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If the two companies
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For Meta, the arrangement would mark a step into a new line of business. CEO Mark Zuckerberg said in May that entering cloud computing could show investors its AI spending generates revenue beyond internal use. Meta plans to spend as much as $145 billion on capital
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The prospective deal would be smaller than the $45 billion, three-year agreement Anthropic signed with SpaceX in May for computing power at its Colossus 1 data center. Access to Nvidia chips remains a bottleneck for AI developers such as Anthropic, which already limits how much users can interact with its top-tier models.
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Plan a getaway under $499
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