Goldwater Institute’s Bill Beard: Data centers are 'essential infrastructure'

William Beard of the Goldwater Institute said data centers should be understood as essential infrastructure in the modern economy, not as a new or unfamiliar development.

Speaking on the Phoenix Business Brief Podcast, Beard, who serves as a municipal affairs liaison, said public debate around data centers is often driven by misconceptions rather than practical realities.

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“A data center is simply a digital library,” Beard said. “Back in the day, a library was somewhere that you went to route through the shelves… you can now do that at your fingertips… and it is the data center that has that digital library of information.”

He said these facilities underpin daily economic activity, supporting everything from business operations to personal access to information through smartphones and internet-connected devices.

Beard argued that local and state policy decisions will play a critical role in determining whether communities benefit from that growth. He said excessive regulation, particularly at the local level, can prevent economic development.

“You do have in this country the right to develop your property as you see fit,” Beard said. “Your ability to maximize the profitability of your chunk of dirt should not be adversely impinged or infringed upon by government.”

He said communities that impose heavy restrictions on development risk stagnation, while those that allow market-driven growth tend to see stronger economic outcomes.

Beard also addressed concerns about energy use, calling fears about data centers overwhelming power systems a misunderstanding of how utilities operate. Large, consistent energy users can help stabilize demand and improve efficiency in power generation, he said.

“A data center coming into a market… actually in a way subsidizes the power needs of those smaller rate consumers,” Beard said, noting that steady consumption can help offset infrastructure costs.

He compared the current expansion of data centers to earlier transformative periods such as electrification and the rise of railroads, arguing that digital infrastructure is part of a similar shift.

“We are truly on the edge of a new world,” Beard said, adding that policy decisions made now will influence whether regions benefit from that transformation.

Beard said emerging technologies like artificial intelligence will further increase demand for data processing capacity, while also creating new opportunities in areas such as medical research and treatment.

“It is only as good or as bad as the person utilizing the tool,” he said of AI, adding that its potential benefits could outweigh risks over time.

William Beard is a municipal affairs liaison at the Goldwater Institute, where he works with local governments and communities on policy issues related to free markets, property rights, and economic development.