By: KeyCrew Media
Formerly industrial cities are being given a fresh opportunity to welcome AI infrastructure, and the developers building it are eager to invest where they are wanted. One developer has watched projects find enthusiastic homes in Texas and the Mountain West, and remains hopeful that legacy markets can capture the same momentum.
Gloversville’s Lesson
Daniel Kaufman, Founder/CEO of Kaufman & Company, points to Gloversville, New York**,** once the self-described glove-making capital of the world**,** as an instructive example of how much a community’s choices shape its future. In the 1980s, Kaufman says, the town faced real environmental questions tied to its manufacturing plants. He believes those moments are best met by working alongside operators to adapt how facilities run, keeping investment and jobs in place.
“Within five years, almost every plant had closed,” Kaufman says. “There is a real opportunity now to write a different story.”
Gloversville and towns like it across upstate New York and New England now have the chance to embrace the next wave of industrial investment, according to Kaufman. The opportunity has shifted from smokestacks to server racks, and Kaufman sees a meaningful opportunity for communities that choose to host new development.
The Pipeline Is On the Move
Kaufman says Kaufman & Company originally looked to formerly industrial cities**, including** Buffalo, Rochester, Syracuse, Manchester, New Hampshire, and communities in Maine**,** because they had existing grid infrastructure and a workforce ready for new opportunity. He remains optimistic that these markets can still compete for the projects that fit them so well.
“We went to Texas,” Kaufman says. “The city of El Paso, the community wants us there. Same thing with Utah. Same thing with places like North Dakota and South Dakota.”
The scale of what moves with those projects is substantial. Kaufman says Utah development alone is projected to produce between 5,000 and 8,000 construction jobs over multiple years in a region eager for new growth. The company also committed to hiring from the local community first. Even the data center’s permanent positions (perhaps a couple hundred, by Kaufman’s estimate) pay well above current local wages, making them especially meaningful in the market.
For communities in the Rust Belt or rural New England, welcoming comparable projects could mean access to both the construction employment and the long-term operational jobs that follow, according to Kaufman.
Building Lasting Regional Capacity
Kaufman’s central point is about the value of building and keeping regional capacity. He draws a parallel to manufacturing, noting how the knowledge base and supply chain supporting an industry become powerful assets worth protecting and growing where they take root.
“Once you build the supply chain and the knowledge base, those become tremendous long-term advantages,” Kaufman says.
Kaufman also emphasizes his strong preference to keep development within the United States. “We want to keep building here,” he says. “Because demand keeps increasing, if we stay in this business, we want to continue to build capacity domestically wherever communities welcome it.”
Go Where You’re Wanted
Kaufman’s approach is to invest his energy where enthusiasm already exists. Kaufman & Company’s operating principle, as he describes it, is to identify jurisdictions that are actively pro-development and concentrate investment there, channeling resources toward partnership rather than process.
In Utah, that meant leaning into the economic opportunity**, specifically** the construction job count and the local hiring commitment**,** in a community excited about new development prospects. The dome design also helped. Kaufman says the structures complement the surrounding mountain landscape, and the town preferred them to large-scale logistics buildings.
In El Paso, the site was selected in part because community and municipal support was already present. Kaufman & Company’s pipeline now runs through Texas, Utah, Michigan, and the Dakotas**,** states Kaufman, describing these states as having made a deliberate choice to compete for this type of investment.
Leading With Data and Partnership
Kaufman says the best outcomes come from grounding decisions in facts and building trust with communities**, whether** for data centers or workforce housing projects. He cites a recent example near Kansas City where the company planned townhomes on a commercially zoned parcel, an experience that reinforced his commitment to clear communication and shared goals.
“I deal with logic, I deal with the data, I deal with the truth,” Kaufman says.
His company’s policy is to move forward constructively. When a project isn’t the right fit for a community, Kaufman & Company pivots to an alternative use or redirects the land, always keeping the relationship positive. Kaufman notes that social media rewards developers who lead with transparency, and he sees great value in sharing accurate information early and often.
The pattern Kaufman describes**, rooted** in partnership, guided by data, and focused on the industries a community can grow into**, is**, in his telling, the same dynamic that can help today’s towns build a durable economic base for the next generation. Examples of how these projects come together are outlined in Kaufman & Company’s published case studies. (Link pending client confirmation.)
Daniel Kaufman is the founder of Kaufman & Company, a Los Angeles-based private investment and holding firm with portfolio companies spanning real estate development, workforce housing, venture investment, and infrastructure. His workforce housing platform, Oldivai, focuses on delivering attainable housing in undersupplied markets across the United States.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
