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June 4, 2026 Data Centers Are Increasingly Welcomed in Struggling Downtowns
Downtown data centers are much smaller than centers being pitched or built in the suburbs. But they command the sort of rental rates typically seen only in high-end office space. In addition to rebuilding downtown tax bases, data centers could also bring people back downtown. Development consultant Don Kohlenberger calls it the ‘wedding cake’ model. Data centers in basements or on ground floors would provide lenders with confidence and developers with enough cash flow to be patient in filling vacant office space or converting upper floors to residential. A case study of the impact of one downtown data center appears in the June issue of Downtown Idea Exchange newsletter. Click below to learn more about Downtown Idea Exchange and other resources for revitalizing downtowns and commercial corridors. 
6" x 9", softcover, 238 pages, $24.95.
Recommended ReadingPlace Branding for Small Cities, Regions & DowntownsBranding is a powerful tool for downtown revitalization and economic development — Yet, it is often misunderstood. In Place Branding for Small Cities, Regions & Downtowns, author Bill Baker presents proven techniques and real-world examples to bring successful place branding to every community. He provides a step-by-step process to create a unifying place brand which embraces tourism, economic development, and community pride. Then he demonstrates how to bring that brand to life through compelling designs, storytelling, experiences, placemaking, and wayfinding. The book provides techniques that are specific to the challenges encountered by smaller places such as downtowns, Main Streets, and business districts. Place Branding is just one of the many books on Marketing and Promotion available from the Downtown Development Center. |
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In suburbs around the country, data centers have become a point of contention. But for downtown leaders struggling to fill empty buildings, they could provide a welcome source of new tenants and a boost in property values.