Cooperative Data Centers: Lessons from GAD eG
Tara Merk’s report examines cooperative data centers through a detailed historical case of GAD eG, showing how infrastructure ownership shapes power in the AI economy. It argues that control over data centers—not just data or algorithms—is decisive in determining who can build and govern AI. The paper identifies four conditions for emergence: collective efficiency gains, shared risk through joint ownership, legal and financial advantages, and cultural alignment within a cooperative ecosystem. At the same time, it shows how these models unravel under pressure: consolidation dynamics, scaling demands, and legal frictions push cooperatives toward demutualization. Cooperative AI data centers remain possible, but only where stable financing, clear benefits, and strong governance persist.
Cite:
Merk, Tara. Cooperative Data Centers: Lessons from GAD eG. New York: Institute for the Cooperative Digital Economy, 2026.