In an exclusive commentary for The Wyoming Star, Dr. Michael Mandel, Chief Economist and Vice President at the Progressive Policy Institute, breaks down how the rapid expansion of AI infrastructure is reshaping the economy—particularly for states like Wyoming. Mandel argues that America’s sweeping wave of data center construction is not just a tech trend, but a foundational investment comparable to America’s most transformative industrial projects.
Dr. Mandel challenges the idea that AI infrastructure is similar to ephemeral tech bubbles. Instead, he frames it as a revival of “physical” industries that have struggled to grow in recent decades. He points out that “physical” industries such as agriculture, construction, manufacturing, and much of mining have stagnated compared to digital industries.” This stagnation, he noted, has been especially difficult for Wyoming, a state that “has barely grown since 2019.”
Mandel emphasizes that the arrival of AI could finally reverse that stagnation. According to him, “AI has the potential to transform physical industries, boosting productivity and incomes and opening up new markets.” He suggests that states like Wyoming—which has seen “no productivity growth over the past 15 years”—stand to benefit significantly if they tap into AI infrastructure development.
Unlike digital services that require minimal physical investment, AI depends heavily on advanced facilities. This includes more powerful data centers, more resilient electrical grids, and a surge in high-skilled construction and electrical work. Mandel compares this investment to early American industrialization, saying the “growth of AI requires investment in large-scale data centers… no different, conceptually, from laying down rails for trains or drilling for oil.”
His central argument: without spending first, the benefits of AI will not materialize. As he puts it, “You need to spend on technology to get the benefits of technology, especially when dealing with the complications of the real world.”
Mandel also warns that the U.S. cannot afford to hesitate. He notes that “China is pouring hundreds of billions into advanced technology industries, including AI.” In this landscape, he argues, the United States’ growing investment in data centers and grid technology “looks like a necessity rather than an optional choice.”
This view frames data center development not as a burden on local infrastructure, but as strategic economic policy—especially for regions hungry for economic growth, tax revenue, construction contracts, and long-term employment opportunities.
Wyoming is becoming a prime target for new data center investments due to inexpensive land, abundant wind energy, and existing transmission corridors. For a state with flat productivity and limited new industry growth, Mandel’s analysis suggests that embracing AI infrastructure could revitalize not only energy markets, but also engineering jobs, construction trades, and innovation hubs that anchor long-term development.
If Wyoming positions itself early, the state could become to AI what it once was to coal and natural gas: a national supplier powering the next phase of economic expansion.
Originally reported by Michael Mandel in Progressive Policy.
